Filing taxes may feel like a chore, but understanding whether you need to file is the first step to staying on the right side of the IRS. Let’s break down who needs to file a tax return and why it’s essential to stay on top of your financial game.
Income Thresholds
If your income exceeds a certain level, you’re required to file a tax return. These thresholds vary based on your filing status—single, married filing jointly, head of household, etc.—and your age. The IRS updates these figures annually, so double-check to ensure you’re in compliance. Use the Financial Reports feature in the Life Planner app to track your annual income with ease.
Self-Employment
Freelancers and gig workers, listen up! If you earned $400 or more in self-employment income, you’re required to file, even if it’s your only income. Life Planner’s Expense Tracker and budgeting tools make tracking deductible expenses a breeze, ensuring you don’t overpay.
Taxable Benefits
Did you receive unemployment benefits or Social Security income? Depending on the amount and your overall income, you might need to file. The Budgeting Tools in Life Planner can help you determine how these benefits impact your filing requirements.
Other Situations
Even if your income falls below the threshold, you may want to file if you had federal taxes withheld from your paycheck or qualify for credits like the Earned Income Tax Credit (EITC). Filing could mean a refund! Track refunds and tax-related savings goals with the Savings Goal Tracking feature in Life Planner.
Why Filing Matters
Failing to file when required can result in penalties, interest, and a headache from dealing with the IRS. Being proactive not only saves money but also keeps your financial house in order.
Make Tax Time Easier with Life Planner
The Life Planner app is your perfect tax season companion. From managing income and tracking expenses to budgeting for tax payments and saving for future liabilities, Life Planner has you covered.
Download Life Planner Today!
Take control of your finances and tax responsibilities with Life Planner:
Click the link for your device, install the app, and start organizing your finances today. Life Planner makes managing your money simple, helping you prepare for tax season and beyond. Don’t wait—download now and get one step closer to financial peace of mind!