Who is required to file a tax return
The Internal Revenue Service doesn’t require everyone to file a tax return. If your earned and unearned income is less than a certain amount, the IRS doesn’t expect you to file a return. The individuals that meet the following aren’t required to file a return in the 2024 tax season.
- Your unearned income was less than $1,100.
- Your earned income was less than $12,400.
If you meet the above conditions, you need to file a federal income tax return with the IRS to report your income. On the other hand, for those who are over the age of 65 or blind or someone claimed you as a dependent, the income limit gets higher.
Those who are aged 65 and older or blind with earned income of more than $14,050 are required to file a tax return. This is because they get a higher standard deduction. The standard deduction for the elderly and blind is $1,650 more than others filing taxes as a single filer.
Why you might need to file a tax return in 2024
Even if you aren’t required to file a tax return in 2024, you might still need to file one to provide the IRS with your payment information. Individuals and families who qualify for the Economic Impact Payments but didn’t get them due to the IRS not having their payment information need to file a return.
The aim of this is to provide the IRS with payment information so that their stimulus can be sent to them as recovery rebate credit. As a non-filer, you will claim this tax credit to get your economic impact payment. The stimulus payments are formally known as the recovery rebate credit and the payments received after March 2024 were an advanced payment of this credit.
How to choose payment method on Form 1040
When filing Form 1040, the payment information on the form will be entered in the refund section. You can either opt to receive your payment direct deposited to your bank account or get it mailed to you. This applies to all types of payments and should remain with the IRS until you close the bank account or move to a new address.
Check out Form 1040 instructions to file to see how you can update payment information.
