Income Tax Filing

Income tax was levied on non-residents and American citizens living and working in a foreign country and for the federal government. During World War I, the government requested that citizens volunteer to pay taxes as a way to pay for the war. During World War II the government employed Walt Disney and his cartoon character, Donald Duck, to increase the voluntary payment of the income tax.

Income is taxed at the federal level (at progressive rates) and at the state level (at progressive rates). There are four categories of income: wages and salaries, business income, investment income, and capital gains. All kinds of income, except capital gains, are generally aggregated and taxed at the same rates. However, for non-residents, the tax liability depends on the type of income that is being taxed.

Whether you have to file a tax return (or pay tax) depends, in part, on your filing status, deductions, amount and type of income. There are no such things as "start and stop" ages, not having to pay because of retirement or on social security or working from home or a student. It is all addressed as a matter of "how much TAXABLE income."
(Note: working isn't relevant either, as many people who don't work or are retired, or disabled, or old, or young, or in school, have income from many sources: savings, investments, etc. TAXABLEincome is different than what you mayotherwise think of as income. In most circumstances, you have to do many of the calculations needed to file a return, just to determine what taxable income may be).

Likewise, there are no special or fixed rates for retired, student, doctor, sanitation worker, President, convict...whatever. The amount of taxable income after applicable deductions and adjustments determines the rate applied to your particular situation. The rate, as well as the amount, you pay changes as the amount of income does.

You must file taxes if you earn the following amounts of income:

Self-employed, any age: $400
Children and Teens classified as a dependent: $5,700
Single, under 65: $9,350
Single, over 65: $10,750
Married, filing jointly, both spouses under 65: $18,700
Married, filing jointly, one spouse over 65: $19,850
Married, filing jointly, both spouses over 65: $20,900
Married, filing separately, any age: $3,650

Even if you do not have to file, you should file to get money back if Federal Income Tax was withheld from your pay, which if you were an employee most certainly happened or you qualify for any of the following:

Earned Income Tax Credit. The Earned Income Tax Credit is a federal income tax credit for eligible low-income workers. The credit reduces the amount of tax an individual owes, and may be returned in the form of a refund.

Additional Child Tax Credit. This credit may be available to you if you have three or more qualifying children or if you have one or two qualifying children and earned income that exceeds $11,300. The Additional Child Tax Credit may give you a refund even if you do not owe any tax.

Health Coverage Tax Credit. Limited to certain individuals who are receiving certain Trade Adjustment Assistance, Alternative Trade Adjustment Assistance, or pension benefit payments from the Pension Benefit Guaranty Corporation.

Even if you are not required to file a tax return, file a return because many, low income people have many benefit coming that are keyed to FILING A RETURN.

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