IRS Guidelines for Dependents: Who Needs to File a Tax Return?

2023 tax filing
With millions of taxpayers yet to submit their returns in 2023 tax filing season, understanding the key facts can make a big difference. (Photo: Getty)

IRS Guidelines for Dependents

The Internal Revenue Service (IRS) recently released the IRS Guidelines for Dependents which contain details about who is required to file a tax return.

The Internal Revenue Service (IRS) released the IRS Guidelines for Dependents. (Photo: Forbes)

The tax return requirements for dependents differ from those of other taxpayers, and individuals with dependents need to understand these requirements to avoid future complications.

Factors that affect filing requirement

According to the IRS, here are the things that affect whether an individual is required to file a tax return:

Gross income: Gross income means all earnings an individual received in the form of money, goods, property, and services that aren’t excused from tax. This encloses any earnings from sources outside the United States or from the sale of a main home.

Required filing threshold: Taxpayers will need to secure if their gross earnings are over the required filing threshold.

READ ALSO: Tax Credits in 2023: Which Ones Can You Claim for Maximum Savings? 

Who Needs to File a Tax Return based on the IRS Guidelines for Dependents?

For individuals over 65 or blind:

  • a tax return is required if non-wage income is greater than $2,900 ($4,650 if over 65 and blind)
  • A tax return is also mandatory if wage income is greater than $14,700 ($16,450 for those over 65 and blind) if the gross income is greater than the greater of $2,900 ($4,650 for those over 65 and blind), or wage income ($12,550) plus $2,150 ($3,900 if age 65 or older and blind).

Singles under age 65 and not blind:

  • a tax return is required if income not from wages is greater than $1,150
  • income from wages is over $12,950
  • gross income is greater than $1,150 or wage income (up to $12,550) plus $400.

Married individuals over age 65 or blind:

  •  unearned income is over $2,550 ($3,950 if over 65 and blind)
  • income from salaries is over $14,350 ($15,750 if age 65 or older and blind)
  • gross income is at least $5 and the spouse files a single individual return itemizing deductions
  • gross income is greater than $2,550 ($3,950 for those over 65 and blind)
  • earned income (limited to $12,550) plus $1,800 ($3,200 if over 65 and blind).

Married individuals under age 65 and not blind:

  • unearned income is greater than $1,150
  • wage income is over $12,950
  • gross income is at least $5 and the spouse files a separate return itemizing deductions
  • gross income is greater than the higher of $1,150 or salary earnings (maximum $12,550) plus $400.

It is important to take note of the IRS Guidelines for Dependents especially those people with a dependency who meets these requirements.  They must file a tax return, or the IRS could claim any of these tax payments in the future. The tax season will end on April 18, and individuals with dependents should ensure they file their return to the IRS before this date to avoid any potential issues.

READ ALSO: A Missed 1099 on Your Tax Return: What You Need To Know To Avoid Consequences

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