Here's how to determine if you should file this year:

 

Check your income to see if you meet the minimum filing requirements.

 

Determine the filing status that best fits your situation.

 

If you're retired, find out if your retirement income is taxable.

 

Check if you qualify for certain credits and deductions to reduce your tax liability.

Benefits of Filing Taxes:

 

Get a Refund: In some cases, you may receive a refund when filing taxes, especially if taxes were withheld from your salary by your employer.

 

Avoid Interest and Penalties: Filing and paying owed taxes correctly and on time can help you avoid interest and penalties.

 

Protect Your Credit: Timely and accurate filing helps you avoid liens, which can damage your credit score, making it harder to get loans.

 

Apply for Financial Aid: Accurate filing makes it easier to apply for education cost assistance.

Build Social Security Benefits: Reporting self-employment income on your tax return ensures that this income is included in your benefit calculations.

 

Accurately Assess Your Income: Lenders look at your tax return when you apply for a loan to calculate your interest rate and determine if you can repay. Accurate filing may result in lower interest rates and better loan terms.

 

Peace of Mind: When you accurately file and pay taxes on time, you know you're following the law and doing the right thing.

 

Even if your income is below the threshold, you may want to file as you might be eligible for a refund. This could apply to you if you:

 

Have federal income tax withheld from your wages.

 

Paid estimated taxes.

 

Qualify for tax credits such as the Earned Income Tax Credit and Child Tax Credit.

Additional Situations Where Taxpayers Must File 2023 Tax Returns:

 

Taxpayers must submit 2023 tax returns if they owe any special taxes, including any of the following:

 

Alternative Minimum Tax (AMT)

 

Additional taxes on qualified plans, including Individual Retirement Arrangements (IRAs) or other tax-favored accounts. Taxpayers owing only this tax can submit Form 5329 separately.

 

Household Employment Taxes. However, if the taxpayer is filing solely due to owing this tax, they can submit Schedule H separately.

 

Social Security and Medicare taxes on unreported tips or on wages not subjected to these taxes by an employer.

 

Repayment of the First-Time Homebuyer Credit (refer to instructions for Form 1040 or 1040-SR, Schedule 2, Part II).

 

Prepaid taxes, including uncollected Social Security and Medicare taxes, Railroad Retirement Tax Act (RRTA) taxes reported by the taxpayer on tips received from their employer, group-term life insurance tax, or Health Savings Account (HSA) additional tax (refer to instructions for Form 1040, or 1040-SR, Schedule 2, line 17).

 

Recapture taxes (refer to instructions for Form 1040 or 1040-SR, Schedule 2, Part II).

 

Taxpayers (or their spouses, if filing jointly) receiving distributions from HSA, Archer Medical Savings Account (MSA), or Medicare Advantage MSA.

 

Taxpayers with net earnings from self-employment of at least $400.

 

Taxpayers receiving wages of $108.28 or more from a church or a qualified church-controlled organization exempt from employer Social Security and Medicare taxes.

 

Taxpayers who pre-paid premiums for themselves, their spouse, or family members through the Health Insurance Marketplace. Taxpayers should have received Form 1095-A showing the amount of prepayments (if any).

 

Taxpayers who pre-paid premiums for themselves, their spouse, or family members through the Health Coverage Tax Credit (HCTC). These taxpayers or anyone they enrolled should have received Form 1099-H showing the amount of prepayments.

 

Taxpayers must submit Form 965-A.