What is the income limit to not have to file taxes in the United States in 2024?
The US is in the second month of the tax season. What is the maximum income you can earn without having to file taxes this year? Here are the details.
The Internal Revenue Service has been receiving and processing workers’ tax returns for fiscal year 2023. The tax agency expects more than 146 million individual tax returns to be filed this season.
Filers have until April 15 to submit their return and pay their taxes, and those who request an extension have until October 15 to submit it. Who are the workers who are not required to file their tax return?
Workers with this income do not need to pay taxes
Most US workers, including permanent residents, are required to file a tax return based on their annual income.
For this year, workers must submit a declaration if their gross annual income was equal to or greater than the following figures during the 2023 fiscal year:
- $13,850 for individuals under 65 years of age
- $15,700 for individuals age 65 and older
- $20,800 for heads of household under 65 years of age
- $22,650 for heads of household aged 65 or older
- $27,700 for couples under age 65 filing jointly
- $29,200 for couples age 65 or older (one spouse) filing jointly
- 30,700 for couples age 65 or older (both spouses) filing jointly
- $5 married filing separately
- $27,700 for a qualifying surviving spouse under age 65
- $29,200 for a qualified surviving spouse age 65 or older
READ ALSO: Social Security payment amounts at age 67
Generally, people who earn less than the amounts above are not required by law to file taxes. However, they can file for a refund or claim a tax credit, such as the earned income tax credit (EITC) or the child tax credit (CTC).
For more information, you can consult the section “Who needs to file a tax return″ on the IRS website.
READ ALSO: Tax relief for those who choose to install solar
How much taxes do I have to pay the IRS?
The IRS sets tax rates each year; that is, the percentages of taxes paid based on taxpayers’ taxable income. Taxable income is defined as any income that is subject to federal taxes, whether earned or not.
The applicable tax rate depends on your marital status. For tax year 2023, these are the tax rates.
- 37% for income over $578,125 ($693,750 for married couples filing jointly).
- 35% for income over $231,250 ($462,500 for married couples filing jointly).
- 32% for income over $182,100 ($364,200 for married couples filing jointly).
- 24% for income over $95,375 ($190,750 for married couples filing jointly).
- 22% for income over $44,725 ($89,450 for married couples filing jointly).
- 12% for income over $11,000 ($22,000 for married couples filing jointly).