Depending on your filing status and the amount of income you made during the year, you may not be required by law to file a return with the IRS. However, even if you do not have to file it may be in your best interest to submit a tax return.
If your taxable income is below your standard deduction amount, you may not be required to file. For example, if you are single and claim yourself as a dependent, you would not be required to file a return if you earned wages less than $12,000.
However, if you have any of the following scenarios, you are required to file a tax return regardless of the amount of income you made:
● You received self-employment income of $400 or more
● You receive an advance payment of the premium tax credit (affordable health care insurance premium credits through the marketplace)
● You received unemployment compensation
● You owe early withdrawal penalties on a retirement plan
● You received distributions from a medical savings account or a health savings account
Even if you are not required to file a tax return, you may want to file for the following reasons:
● You have taxes withheld and are entitled to a refund
● You are eligible for a refundable tax credit such as:
○ Earned income credit
○ Additional child tax credit
○ American opportunity tax credit
● You are eligible for an adoption credit