What is the IRS standard tax deduction for 2021? I did not file a tax return last tax year because I lost my job and my income in March due to COVID. I got a part-time job in 2021 and am wondering if I made enough money that requires me to file this year.
Whether or not you are required to file a federal income tax return this year depends not only on how much you earned last year (in 2021), but also the source of that income, as well as your age and your filing status.
Here is a rundown of this tax season's IRS tax filing requirement thresholds. For most people, this is pretty straightforward. If your 2021 gross income – which includes all taxable income, not counting your Social Security benefits, unless you are married and filing separately – was below the threshold for your filing status and age, you may not have to file. But if it is over, you will have to file.
- Single: $12,550 ($14,250 if you are age 65 or older by Jan. 1, 2022).
- Married filing jointly: $25,100 ($26,450 if you or your spouse is age 65 or older; or $27,800 if you are both over age 65).
- Married filing separately: $5 at any age.
- Head of household: $18,800 ($20,500 if age 65 or older).
- Qualifying widow(er) with dependent child: $25,100 ($26,450 if age 65 or older).
To get a detailed breakdown on federal filing requirements, along with information on taxable and nontaxable income, call the IRS at 800-829-3676 and ask them to mail you a free copy of the "1040 and 1040-SR Instructions for Tax Year 2021," or you can get it online at IRS.gov
Check Here Too
You also need to be aware that there are other financial situations that can require you to file a tax return, even if your gross income falls below the IRS filing requirements. For example, if you earned more than $400 from self-employment in 2021, owe any special taxes like an alternative minimum tax, or get premium tax credits because you, your spouse or a dependent is enrolled in a Health Insurance Marketplace plan, you will need to file.
You will also need to file if you are receiving Social Security benefits, and one-half of your benefits plus your other gross income and any tax-exempt interest exceeds $25,000, or $32,000 if you are married and filing jointly.
The IRS offers an online tax tool that asks a series of questions that will help you determine if you are required to file, or if you should file because you are due a refund.
You can access this tool at IRS.gov/Help/ITA
– click on "Do I Need to File a Tax Return?" Or you can get assistance over the phone by calling the IRS helpline at 800-829-1040.
Check Your State
Even if you are not required to file a federal tax return this year, do not assume that you are also excused from filing state income taxes. The rules for your state might be very different. Check with your state tax agency before concluding that you are entirely in the clear. For links to state tax agencies see Taxadmin.org/state-tax-agencies
Tax Prep Assistance
If you find that you do need to file a tax return this year, you can file for free through the IRS at IRS.gov/FreeFile
if your 2021 adjusted gross income was below $73,000.
If you need some help, contact the Tax Counseling for the Elderly (or TCE) program. Sponsored by the IRS, TCE provides free tax preparation and counseling to middle and low-income taxpayers, age 60 and older. Call 800-906-9887 or visit IRS.treasury.gov/freetaxprep
to locate services near you.
You can also get tax preparation assistance through the AARP Foundation Tax-Aide service. Call 888-227-7669 or visit AARP.org/findtaxhelp
for more information.
Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living" book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization's official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.