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Who is not required to submit a tax return in 2023?

Every year millions of Americans must file their taxes with the IRS. Below explain who is not required to do so in 2023.

Update:
IRS tells taxpayers in California to hold off on tax-filing
ERIN SCOTTREUTERS

Every year, millions of Americans are required to file a tax return with the Internal Revenue Service (IRS).

Although the vast majority of organizations and workers will go through the process of submitting a return, there are a few groups that are not required to report their income to the IRS. We took a look at these groups...

Who is not required to declare taxes in 2023?

Some groups of people and institutions are not required but can file a tax return in 2023.

Nonprofit organizations

Section 501(c)3 of the Internal Revenue Code dictates that any organization that qualifies to be classified as a “nonprofit” is exempt from paying income taxes of any kind. These include religious, educational, and humanitarian organizations. These groups do have to file a return that includes their income and expenses, and if approved, no tax is levied against the organization.

This categorization does come with certain rules of conduct for these organizations. For instance, 501(c)3s, unlike 501(c)4, cannot engage in partisan politics that favor one political party over the other. However, they can advocate based on issues so long as they remain apolitical in doing so.

US citizens working abroad

In 2023, Americans abroad are exempt from paying taxes if they earn less than $120,000. In addition, this group has certain tax benefits that lower their annual gross income, such as the ability to exclude or deduct housing costs.

Low Income Taxpayers or those with many deductions

People with income that does not exceed the standard deduction do not need to pay taxes or file a return. This depends on the marital status of the taxpayer. In 2023, the standard deduction for the 2022 tax year was $13,850 for those who would file as ‘single,’ and $27,700 for those who would file jointly.

Some may able to avoid filing a return because the deductions they can claim bring their annual gross income below these levels.

Taxpayers with many dependents

Low-income families with dependent children may not have to pay taxes if they qualify for the Earned Income Tax Credit.

At what age do you stop filing taxes?

Once a taxpayer turns 65, they don’t have to file taxes unless their non-Social Security income exceeds a certain threshold.