Filing Taxes Requirements, Guide, and Filing Deadline

Do you have to file a Tax Return

Not all US citizens are required to file a federal income tax return (though not required doesn’t necessarily mean you shouldn’t). You are not required to file a tax return if your income is below a certain threshold based on your age and status (there is no set minimum income for filing a return, it all depends on filing status and age).

However, A return is required if you had made estimated tax payments and need to claim a refundable tax credit (like Earned Income Tax Credit and Child Tax Credit) or get refunds for taxes withheld on your pay.

Non-US citizens may be required to file a return if they are living in the U.S. and earning money in the country and fall within the tax filing status.

What are the Minimum Income Requirements

The amount of income required for a taxpayer to file a tax return depends on the type of income, age, and filing status. Below, please find the income threshold;

Minimum Income Requirements for dependents

The Age and Status Requirements differ if you have been claimed as Dependent on someone else’s return. However, if you are an adult and a working dependent, you are likely to be required to file your own return.

‘Special Circumstances’ that require the filing of taxes

Certain ‘Special Circumstances’ may necessitate an individual to file a return despite not meeting the income thresholds listed for certain age and filing status;

• Earnings of more than $400 in total self-employment income
• The individual has a tax liability on their Health Savings Account (HSA)or a retirement plan
• If the Alternative Minimum Tax is payable
• A household employer with a tax liability
• Individuals paid at least $108.28 in wages from a tax-exempt church or church-controlled organization
• Taxpayers with distributions from a Health Savings Account or an MSA in that particular tax year.
• Anybody required to repay a 2008 Homebuyer Credit (or other recapture tax)
• Individuals with unpaid Social Security/Medicare taxes
• If you owe taxes on unreported income

Filing taxes electronically

Electronic filing or e-filing is the process of submitting a tax return to the IRS using the internet. This is usually done using tax preparation software that has been preapproved by the IRS.

The IRS receives all electronic tax returns transmitted from January 23^rd. Processing of refunds starts on the same day. E-files completed and submitted prior to this date are queued and transmitted on the same day.

Filing taxes for free IRS

Use Free File Fillable Forms

It’s a DIY method and is best suited for people with a background in accounting. Suppose you are comfortable with preparing your own tax return (with just IRS instructions and publications). In that case, you can download the Free File Fillable Forms (electronic federal tax forms which are equivalent to a paper Form 1040) and submit them directly on the IRS website.

The option is free to eligible taxpayers (filers with an AGI of $73,000 or less). It’s still accessible to taxpayers with an AGI that is higher than the threshold. However, they won’t enjoy the interactive, personalized assistance that the Free File provides.

Use Guided Tax Preparation

It’s a free e-filing (online tax preparation and filing) with limited parameters(subject to certain rules) that’s available to qualifying taxpayers via an IRS partner website like TaxSlayer, FreeTaxUSA, 1040NOW, TurboTax, TaxAct and ezTaxReturn.com, among others.

Taxpayers with income (AGI) above $73,000 might be entitled to more limited assistance.

Links to these partner websites are available on the IRS website. Taxpayers can also answer a few questions and get directed to a provider that matches their needs.

Use Volunteer Tax Return Preparation Site

Free tax preparation and electronic filing are available to qualified taxpayers (low-income individuals, senior citizens, and those with limited English proficiency)

Qualified Taxpayers can access free tax one-on-one tax preparation and electronic filing through various IRS partner organizations(sponsoring organizations) staffed by IRS-certified volunteers. This is done via two IRS programs;

• IRS Volunteer Income Tax Assistance (VITA).
• Tax Counseling for the Elderly (TCE) programs.

VITA provides free basic income tax returns to taxpayers who generally earned $60,000 or less, persons with disabilities, and taxpayers with limited English proficiency who need assistance with preparing their own returns.

The Tax Counseling for the Elderly (TCE) program offers FREE tax help to senior citizens (age 60 or older).  Where a joint return is involved, just one spouse needs to qualify for the 60-year age requirement.

IRS offers matching funds to these organizations to enable them to execute this mandate.

Use of Commercial Software

Commercial software allows a taxpayer to enter data into fillable forms that come in a question-and-answer format that eventually generates form 1040 which is filed electronically. They update their e-filing options to accommodate IRS tax changes every year.

Taxpayers need to subscribe to paid plans that come with more benefits(cater for complex tax situations), however, most software allow free version that can process simple tax returns(basic W-2 income and taking the standard deduction) to file federal taxes — and even state taxes.

Filing taxes without a w2

It’s possible to file taxes without a W-2(usually provided by the employer).

If the employee is not in a position to request a copy of the same from previous employers or the IRS, they can still file taxes by filling out Form 4852, “Substitute for Form W-2, Wage and Tax Statement.” This is a request for information on any taxes that were withheld on wages

Alternatively, the employee can use the previous year’s W-2 if they are still in employment at the current workplace and the payment terms have not changed.

It’s not a requirement to submit a W-2 copy when filing electronically. However, it’s very much required for background checks or when going through an IRS audit.

Filing taxes when self employed

Self-employed individuals are required to pay self-employment (SE) tax and income tax.

These individuals are generally required to file an annual return and pay estimated taxes quarterly (Installment taxes are not applicable if there is reason to believe you’ll make less than $1,000 in a given year).

Self-employment tax is a tax made up of;

• Social Security (in 2022 it was 12.4% on the first $147,000 of net income). This tax is payable if you earned more than $400 working for yourself. Earnings below the threshold don’t attract tax but it’s still reportable on Form 1099(Form 1099-MISC or 1099-K).
• Medicare taxes (2.9% of all net income) are paid in lieu of having a company withhold Social Security and Medicare taxes from your paycheck.

No income filing taxes

You are not obligated to file a tax return if you don’t have an income or your income for the previous year falls below the minimum IRS thresholds (adjusted year to year for inflation). This is applicable even when your earnings are less than the amount of that tax year’s standard deduction.

This threshold will vary according to your age and filing status, which is:

• Single
• Head of household
• Marital status-Filing separately from your spouse or jointly with your spouse or
• Whether or not you are Claimed as a dependent on someone else’s tax return.

Self-employed individuals are not exempt from this requirement. They have to file a return and pay a self-employment tax if they have as little as $400 in self-employment earnings.

Why file anyway

It’s advisable to file a tax return, even with no income. Please do so if;

• You qualify for some refundable tax credits even if you don’t have a job (e.g. the Earned Income Tax Credit or Additional Child Tax Credit). You are entitled to credits even with a tax bill of $0 (Depending on the previous year’s tax payments, a zero-income tax return may still result in a refund). These credits can only be accessed by filling out Form 1040 and other tax forms.
• An individual has any health care tax credits or subsidies for the previous year. This allows you to receive them from now on too.
• You have already paid some taxes in advance and need refunds.
• Taxes  on salary was withheld at source (W-2 or 1099 income)
• You have a huge tax deduction that needs to spread over years.
• There is a deduction of The “nanny tax” for household employees
• College-going kid with very little income. Filing a return opens up the door to accessing the American Opportunity credit.
• A strategy of limiting future audits (the statute of limitation). Filing a return limits an IRS audit to 3 years; not filing a return opens a taxpayer to IRS audits going way past the 3 years.

Deadline for filing taxes

The deadline for filing individual tax returns (or seeking an extension) is typically April 15^th for the majority of taxpayers (unless this date falls on a weekend or holiday.

Taxpayers requesting an extension (file Form 4868) have until Monday, October 16, 2023.

Filing taxes date

These Dates are important for Individual Filers (employees, retirees, self-employed individuals, independent contractors, and gig workers).

• January 31, 2023: Deadline for All employers to send W-2 forms to employed individuals. it’s still the Deadline for Businesses that withheld taxes on non-employment individuals(independent contractors, gig workers, etc.) to send Various 1099 forms, forms 1099-NEC,1099-MISC, and 1099-K.
• February 15, 2023: deadline for Individuals who choose to claim exemption from payroll taxes to refill Form W-4. Employees do request this exemption if they don’t anticipate having any tax liability in the current tax year and had none in the previous year.
• April 3, 2023: The deadline for taking the first distribution (for those who turned 72 in 2022) of your required minimum distribution (RMD)
• April 18, 2023: Deadline to file your 2022 taxes or request an extension. It’s also the deadline for Installment taxes for the First quarter of 2023 are due (Use IRS Form 1040-ES to calculate how much tax liability you’ll have for the year.
• June 15, 2023: Installment taxes for the Second quarter of 2023 are due.
• September 15, 2023: Installment taxes for the Third quarter of 2023 are due.
• October 16, 2023: Deadline to file the extended 2022 tax return and also the Deadline for Individual filers to make the final contributions to an IRA and HAS for the tax year 2022.
• December 31, 2023: Deadline for taking 2022 RMDs for individuals aged above 73(by end of 2023).

 Penalties for filing taxes late

Missing a tax deadline makes a taxpayer a delinquent. The IRS will calculate penalties based on the amount due. This means if there is no tax due there won’t be a penalty.

The penalty for late filing is 5% of the amount due each month (or part of a month that a tax return is due or extended due date) split as;

• 5% for failure to file (maxes out after 5 months) and
• 5% penalty for failure to pay (maxes out at 25% of unpaid taxes at the due date or extended due date).

This pushes the maximum total penalties to 47.5% (22.5% late filing and 25% late payment) of the tax.

IRS levies a  minimum Failure to File Penalty of $435 for returns that are over 60 days late. This is applicable to tax years 2020, 2021, and 2022 or 100% of the unpaid tax, whichever is less.

The IRS will charge Interest on outstanding taxes until fully paid. Take note that this Interest charge has no maximum ceiling.

Deadline for filing taxes extension

The deadline to file an extended return is Monday, October 16, 2023, to file.

Ensure you request an extension by the regular filing due date and pay the Estimated taxes.

Filers (regardless of income) can use Free File to electronically request an automatic tax-filing extension. Alternatively, they can send hard mail properly addressed, postmarked, and deposited in the mail by the due date.

Filing taxes from previous years

Delinquent taxpayers need to file past returns the same way they would with on-time returns regardless of whether in a position to pay.

If filing after receiving a notice, the late return should be sent to the address indicated on the notice.

The IRS usually only requires late returns for the last six years to be in the good books. Even so, IRS audits can cover more than the stipulated six years.

IRS limits refunds and tax credits to the latest three years.

Why file returns from previous years

Filing back tax returns helps;

1. When Claiming a refund
2. To Stop late filing and payment penalties and interest,
3. Show Proof of income when applying for loans,
4. To pay Social Security and Medicare taxes through their individual income tax returns.

Bottom Line

• File your tax returns electronically and choose the option for direct deposit for your refunds. This is the fastest and safest way to receive the money.
• The IRS limits claims on refunds to original returns claiming a refund to three years of its due date. In 2023, taxpayers can claim refunds for the tax year 2017.
• IRS abated the failure-to-file penalties for 2019 and 2020 returns. The IRS will offset or refund Penalties already paid.
• Self-employed individuals need to file returns if they earned over $400 in income.
• Avoid guesswork that leads to installment tax underpayment penalty by estimating installment tax at 90% of your estimated current year tax bill or 100% (or 110% depending on AGI) of your prior year tax bill.