2020 Taxes: 8 Things to Know Now
Taxpayers should gather Forms W-2, Wage and Tax Statement, Forms 1099-MISC, Miscellaneous Income, and other income documents to help determine if they're eligible for deductions or credits.
Single: If you are single and under the age of 65, the minimum amount of annual gross income you can make that requires filing a tax return is $12,200. If you're 65 or older and plan on filing single, that minimum goes up to $13,850.
At 65 to 67, depending on the year of your birth, you are at full retirement age and can get full Social Security retirement benefits tax-free. However, if you're still working, part of your benefits might be subject to taxation. The IRS adds the figures for your earnings and half your Social Security benefits.
The IRS is still encouraging people to file as soon as possible, especially those who are owed a tax refund. There may be circumstances that require you to wait and file your 2020 tax return closer to the May deadline.
The minimum income amount depends on your filing status and age. In 2020, for example, the minimum for single filing status if under age 65 is $12,400. If your income is below that threshold, you generally do not need to file a federal tax return.
Here are some common items you might need when filing:
For single taxpayers and married individuals filing separately, the standard deduction rises to $12,400 in for 2020, up $200, and for heads of households, the standard deduction will be $18,650 for tax year 2020, up $300.
If your gross income was less than $10,000, you may not have to file a federal income tax return. ... Filing a tax return — even if you're not required to do so — is the only way to get any tax you're owed refunded to you.
As you can see, if you are a single dependent, you have to earn more than $6,350 in 2017 from all earned income sources combined before you must file taxes on those earnings. And if you made $3,000 you do not have to file taxes as this amount is clearly less than this minimum threshold.
Social Security benefits do not count as gross income. However, the IRS does count them in your combined income for the purpose of determining if you must pay taxes on your benefits.
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