How Much Money Do You Have to Make to File Taxes?

Do you need to file taxes this year? How much money must a family caregiver earn to file their taxes? Family caregivers incur many expenses through caregiving, from medical costs to transportation costs. Understanding filing requirements and minimum income threshold can help ensure you take advantage of essential deductions or credits owed. 

How do you calculate taxes owed?

Do you know your filing status? Your filing status determines how much money you need to make to be required to file taxes. The IRS bases your filing status on your marital status and whether you are a dependent of someone else. Generally, if you are single, not claimed as a dependent on someone else's tax return, and over 18, you most likely need to file for taxes if you make over $12,950 annually.

How to calculate your taxes

To determine whether or not you must file taxes, first, add up all sources of your income:

• Wages
• Tips
• Unemployment benefits
• Self-employment earnings
• Utility payments
• Rental Property Income
• Other sources of income.

If your total income exceeds the threshold, you must file a tax return this year. The threshold changes each year; in 2022, the threshold was $12,950. What does this mean? You must file for taxes if your total income exceeds $12,950 in 2022. 

You must file taxes to avoid tax evasion if you meet the minimum income threshold. Tax evasion means avoiding or underpaying taxes by not reporting income, claiming false deductions, or hiding assets. Tax evasion is a serious offense and can result in hefty fines, penalties, and even imprisonment. 

What if you do not meet the threshold? You do not have to file for taxes. However, a family caregiver may file taxes to get a tax refund or claim a credit. In some states, receipt of state stimulus checks or other benefits may move quicker if someone has filed for taxes. Always check with a professional tax preparer if you have questions. 

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Income requirements for filing taxes

The income requirements for filing taxes depend on several factors, including your filing status, age, and the types of income you receive. Here are some general guidelines for the 2024 tax year (which is for income earned in 2023) for U.S. federal income tax purposes.

1. Single filers: If you are single and under age 65, you generally need to file a tax return if your income was at least $13,850 in 2023. If you are 65 or older, the income threshold is $15,700.
2. Married filing jointly: If you are married and filing a joint tax return, you generally need to file a tax return if your combined income was at least $27,700 (both spouses under 65) or $29,200 (one spouse under 65) in 2023. If both spouses are 65 or older, the income threshold is $30,700.
3. Married filing separately: If you are married and filing separately, you generally need to file a tax return if your combined income was at least $5.‍
4. Head of household: If you are unmarried and paid more than half the cost of maintaining a home for yourself and a qualifying dependent, you generally need to file a tax return if your income was at least $20,800 in 2023. If you are 65 or older, the income threshold is $22,650.

Remember that these are general guidelines, and exceptions or additional requirements may be based on your specific situation. We recommend that you consult with a tax professional or use tax preparation software to determine if you need to file a tax return and what forms and schedules you need to file.

Do I have to file taxes?

Most U.S. citizens or permanent residents who work in the U.S. have to file a tax return if they meet certain income thresholds. You may not need to file taxes if you do not meet the minimum income requirements.

Depending on your specific situation, you may be eligible for certain deductions and credits that impact the amount of taxes you owe. Those required to pay taxes must consider their income, credits, deductions, and other factors when determining whether they are obligated to file taxes. 

Check if you need to file a tax return >>

Tax deductions

A standard deduction is a set amount of money that reduces your taxable income, which can lower your overall tax liability. The standard deduction amount varies depending on your filing status, age, and other factors.

The standard deduction is available to all taxpayers, but some individuals may be eligible for additional deductions or credits based on their specific circumstances.

Here are some examples of special deductions that someone may qualify for:

1. Itemized deductions: These are deductions subtracted from your adjusted gross income (AGI) to determine your taxable income. Examples include charitable donations, medical expenses, state and local taxes, mortgage interest, and property taxes.
2. Above-the-line deductions: You can claim these deductions even if you don't itemize your deductions. Examples include contributions to a traditional IRA or Health Savings Account (HSA), self-employed health insurance premiums, and student loan interest.
3. Tax credits: These are dollar-for-dollar reductions in your tax bill. Some examples include the earned income tax credit, the child tax credit, the American Opportunity Tax Credit (for education expenses), and the Lifetime Learning Credit (for education expenses).
4. Deductions for small business owners: Small business owners may be eligible for various deductions, including the home office deduction, the mileage deduction (for business-related travel), and the Section 179 deduction (which allows you to deduct the total cost of specific equipment and property in the year you purchase it).
5. Energy-efficient home improvements: If you make specific energy-efficient home improvements, such as installing solar panels or a geothermal heat pump, you may be eligible for a tax credit.
6. Disaster relief: If you've been affected by a natural disaster, you may be eligible for special tax deductions or credits, such as the casualty loss deduction or the disaster relief credit.

The tax deductions available to unpaid family caregivers may vary depending on various factors, such as the caregiver's relationship to the care recipient, the type of care provided, and the caregiver's financial situation. However, in general, unpaid family caregivers may be able to claim the following tax deductions:

1. Medical expenses deduction: If the caregiver incurs medical expenses on behalf of the care recipient and the total costs exceed a certain percentage of the caregiver's adjusted gross income (AGI), the caregiver may be able to claim a deduction for these expenses. The threshold is 7.5% of AGI for tax years 2021 and 2022.
2. Dependent exemption: If the caregiver provides more than half of the care recipient's financial support, they may be able to claim the care recipient as a dependent and receive an exemption for them.
3. Child and dependent care credit: If the caregiver pays for care for a dependent child or adult while they work or look for work, they may be able to claim a tax credit for a portion of those expenses.
4. Earned Income Tax Credit (EITC): If the caregiver has made income from a job, they may be eligible for the Earned Income Tax Credit (EITC), a credit for low- to moderate-income workers.

It's important to note that tax laws can be complex, and the availability of these deductions may depend on specific circumstances. Therefore, it's recommended to consult a tax professional or use tax preparation software like Givers Taxes to determine which deductions apply to your situation.

Once you have determined your filing status and taxable income, take the time to file your taxes if you meet the minimum income requirements—research credits like the Earned Income Tax Credit or gas mileage reimbursement. Caregivers should review the Internal Revenue Service (IRS) guidelines regarding filing exemptions and extensions. Thankfully several easy options like Givers Taxes make online tax preparation easier for family caregivers.

Related: Can You File Taxes Without a W2? >>