Income Tax Rules - Minimum Earned To File Return?

The earned income tax rules put into place by the federal and local government establish the least amount of earnings that are required before you are liable to pay taxes.

Requirements

The minimum earnings amount varies from year to year, along with certain age and filing statuses. Other property that was given to you in the form of winnings, gifts, inheritances can also cash be included as earnings and will be added into the income that was earned by you in a given tax period.

As an example, suppose you earned $5,000 in the tax year. You would not be liable to file a tax return.  Now, if you earned the same $5,000, but also won a $16,000 car in a sweepstakes contest, that would bring your gross earnings to $21,000 for the year. With the new gross income, you may be required to pay taxes.

It is important to stay on top tax requirements that govern the minimum earnings.