As the deadline for filing federal income tax approaches on April 15, 2025, individuals are asking themselves if they need to file a return if they make very little or just $5,000. One of the most common questions asked is, “Do I have to file taxes if I made only $5,000?” It varies with many factors, including filing status, age, type of income, and whether you qualify for tax credits.
General filing requirements
The Internal Revenue Service (IRS) mandates that United States citizens or resident aliens file a tax return if their gross income is at or above certain levels based on their filing status and age. These 2024 tax year figures are:
- Single filers under age 65: They are required to file if their gross income is $14,600 or more.
- Head of household under age 65: Must file if gross income is $21,900 or more.
- Married filing jointly both spouses under 65: Must file if joint gross income is $29,200 or more.
- Married filing separately of any age: Must file if gross income is $5 or more.
- Qualifying surviving spouse under 65: Must file if gross income is $29,200 or more.
Under these levels, an individual under the age of 65 with a gross income of $5,000 would not typically be required to file a federal income tax return.
Self-employment income issues
There is a big exception for self-employed employees. If you earned $5,000 of self-employment income, say freelancing, gig economy work, or a small business, you’ll have to file a return if your net self-employment income is $400 or more. Self-employed employees have to pay self-employment taxes, which fund Social Security and Medicare contributions.
Dependents and filing requirements
If someone else can claim you as a dependent, special filing threshold requirements exist. For dependents younger than 65 and not blind, a return should be filed if:
- Unearned income: Over $1,300.
- Earned income: Over $14,600.
- Gross income: More than the higher of $1,300 or your earned income (up to $14,150) + $450.
Therefore, if you are a dependent and earned income of $5,000, you would not be required to file a tax return based on income amounts alone.
Specific situations where a tax return must be filed irrespective of income
There are some cases where you are required to file a tax return regardless of income amounts:
- Advance premium tax credit: If advance credit payments of this credit were made to you, your spouse, or a dependent, you must file a return to reconcile the payments.
- Health Savings Account (HSA) or Archer Medical Savings Account (MSA) distributions: For HSA or MSA you must file if you receive distributions from such accounts.
- Self-employment tax: As mentioned, net earnings from self-employment of $400 or more necessitate that you file.
Benefits of filing whether or not required
Even when you don’t have to file, you should:
- Refund of taxes withheld: If federal income tax was withheld from your wages by your employer, you can qualify for a refund. The only way to get your hands on this money is to file.
- Earned Income Tax Credit (EITC): For low- and moderate-income workers. Qualified taxpayers in tax year 2024 could claim up to $7,830. Your adjusted gross income (AGI) would need to be below $66,819, among other stated requirements, to qualify. You would need to file a return to receive this credit.
Penalty for failure to file when required
Failure to file a required return can be penalized heavily. The IRS imposes penalties for most tax obligations not met on a timely basis, and interest is assessed on the penalties until they’re completely paid. To avoid such penalties, make sure to file your returns before the deadline or seek an extension if more time is needed. But remember that although an extension provides additional time to file, tax due must still be paid by the original due date in order to prevent penalty.
Filing options available
There are a number of options available for filing your tax return:
- IRS free file: Taxpayers who are eligible may prepare and e-file their federal income tax return for free. For tax year 2024, taxpayers whose income is $84,000 or less can avail of this facility. It is available on the IRS website.
- Commercial tax software: Various software offer step-by-step guidance at a charge.
- Professional tax preparers: One can hire a professional tax preparer to provide one-on-one service, especially if your tax case is complex.
