How much money can I make before reporting it to the IRS?

Answered by Tom Adger

The threshold for reporting your income to the IRS depends on several factors such as your age, filing status, and sources of income. Let’s break it down.

1. Filing Status:
The IRS has different income thresholds for each filing status. The filing statuses include single, married filing jointly, married filing separately, head of household, and qualifying widow(er) with dependent child. Each status has different income thresholds for reporting income.

2. Age:
If you are under the age of 65 and not blind, the income thresholds are generally lower compared to those who are 65 or older or blind.

3. Sources of Income:
Different types of income have different reporting thresholds. For example, if you are an employee and receive a W-2 form from your employer, you may not be required to file if your income is below a certain amount. However, if you are self-employed, have rental income, or earn income from other sources, different rules may apply.

Now, let’s look at the specific income thresholds for the 2022 tax year:

– Single Filing Status:
If you are single and under 65 years of age, you generally need to file a tax return if your gross income exceeds $12,550. If you’re 65 or older, the threshold increases to $14,250.

– Married Filing Jointly:
For married couples filing jointly and both spouses are under 65, the threshold is $25,100. If both spouses are 65 or older, the threshold is $27,400. If one spouse is 65 or older, the threshold is $26,450.

– Married Filing Separately:
For those married but filing separately, the threshold is generally $5 for any age.

– Head of Household:
If you are a head of household and under 65, the threshold is $18,800. For those 65 or older, the threshold increases to $20,500.

– Qualifying Widow(er) with Dependent Child:
For qualifying widow(er) with dependent child status, the threshold is the same as married filing jointly.

It is important to note that if you have self-employment income, you are required to report your income and file taxes if you make $400 or more. This threshold applies regardless of your filing status or age.

It’s always a good idea to consult with a tax professional or use tax software to ensure you accurately determine your filing requirements based on your specific situation. They can help you navigate the complexities of the tax code and ensure you meet all necessary reporting obligations.