The tax season is now in full swing. Every year, millions of Americans must file their income tax returns. This is a federal requirement that all citizens who earn more than a certain amount of money must report it to the Internal Revenue Service (IRS) in order to pay taxes.
The good news is that many Americans can expect to receive tax refunds this month, with amounts varying depending on how much they overpaid the IRS and how much debt they owe the federal government.
Who must report their income?
If you have never filed your taxes before, the process can be confusing and intimidating. In general, if you work for an employer, the process is fairly straightforward. However, if you are self-employed or own other income-generating assets such as investments, the process can be more complicated.
The IRS requires you to report on all income you earn, so if you earn money other than a salary, it may take longer to file your taxes to ensure you are completely transparent about where your income comes from.
The IRS requires you to file your taxes if your income meets the following criteria:
- You are under the age of 65 and earn over $14,600 as a single filer
- You and your spouse are under the age of 65 and earn over $29,200 as a married couple filing jointly
- You are over the age of 65 and earn over $16,550 as a single filer
- You and your spouse are over the age of 65 and earn over $30,750 as a married couple filing jointly
Additional income limits apply to those whose spouses are in a different age bracket than them, as well as survivors, married couples filing separately, and heads of households.
Importantly, even if you do not meet the income requirements for filing taxes, you must file if you want to receive a tax credit. This is to ensure that the IRS can verify your annual income and determine whether you are eligible for tax breaks.
When to expect your tax refund this month
According to the IRS’s official website, you should receive your Earned Income Tax Credit and/or Additional Child Tax Credit this month. The Earned Income Tax Credit benefits low-income families with children.
The Additional Child Tax Credit is also intended for low-income families with children; however, to be eligible for it, you must first meet the eligibility requirements for the Child Tax Credit. Both the Earned Income Tax Credit and the Additional Child Tax Credit are refundable.
If you have previously claimed the Earned Income Tax Credit and/or the Additional Child Tax Credit, you should have received your credit on March 3 if you did the following:
- You opted for the e-filing method instead of mailing in your tax returns
- You indicated that you would like to see your refund be refunded through direct deposit
- The IRS did not flag any problems with your returns
What to do if you do not know how to file
If you are having trouble filing your taxes, the IRS official website offers helpful resources to help you determine whether and how to file your income tax. If you need additional time to file your taxes, you can request an extension from the IRS.
If you earn less than $67,000, the IRS will provide you with a certified volunteer to assist you in properly filing your taxes. This also applies if you are disabled, require language support, or are over the age of 60.
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