For most adults in the U.S., paying federal taxes are a fact of life. Each year, you file with your financial information, sometimes with the help of an accountant or tax attorney if your situation is complicated. However, not everyone is required to file. If you're looking for a way out of this process, learn whether you qualify below.

When to Talk to a Tax Attorney About Skipping Filing

Requirements

The main factor that determines whether you need to file a federal income tax return is your income. Individuals or households making below a certain amount don't have to file, and that threshold is slightly higher for seniors 65 and older. The thresholds are different each year and depend on your filing status. For example, in 2019, single individuals under age 65 only had to file if they made over $12,000 in gross income, and the minimums were higher for all other groups except those who were married and filing separately. To decide whether you need to file in the future, you'll need to look up the latest information or talk to a tax accountant or tax preparer. 

Who Might Not Need to File

Seniors above 65 are expected to be retiring soon or already in retirement, so the system is set up to offer tax relief at that age. For example, if you were filing as a single individual over age 65 in 2019, the income level requiring taxes to be filed was $13,600 instead of $12,000.

If you’re only working part-time, you likely don't make enough to meet the minimum income requirement. Minor dependents have different income thresholds depending on whether they earned their income or received it through investment, unlike adults who have a single minimum to meet. Finally, those with disabilities receiving Social Security Disability payments have a higher limit and only need to pay taxes on the income that exceeds that amount.

Why You Might File Anyway

Even if you aren't required to file, you may want to do it. Most individuals earning below the minimum income threshold can receive a tax refund this way. You'll be paid a lump sum, but only if you file. Also, if you're worried about IRS tax audits, having a record that you followed the process and evidence of your current financial situation can help protect you.

If you need a tax attorney to help you decide whether to file or to sort out a difficult financial situation, choose Brian Kawamoto, Attorney, in Aiea, HI. Serving the island of Oahu, Brian Kawamoto has over 25 years of experience offering debt solutions for everything from wage garnishments to foreclosure. To schedule a consultation about your unique situation and receive personalized legal advice, contact this office online or at (808) 486-6107.