it

Do I Need to File a Tax Return - Do I Need to File Taxes?

do I need to file a tax return do I need

to file taxes it really depends on your

situation but let's find out together

I'm gonna give you a disclaimer I'm

gonna be upfront with you I'm going to

start with the uninteresting material

first and then the video will grow

aggressively boring until we reach the

really exciting stuff about Social

Security benefits and retirement income

that's where all the magic happens we

all know that I'm gonna tell you the

situations where you are not required to

file a tax return and you should not

waste your time filing one I'm also

going to tell you the situations where

you are not required to file a tax

return but you should because you will

get money back the IRS they'll never

give you notification hey file your tax

return because we're gonna give you

money if you're gonna get money back

know if they know that you're in refund

status they're gonna keep hush about it

they're gonna hope that you do not file

within three years because if you do not

file and claim your refunds in three

years then you lose it it's kind of like

a sick little game that they play most

people that are asking this question of

do I need to file taxes is because you

didn't make much money your child works

or the majority of your income is from

Social Security benefits or retirement

income let's begin with the situation

where you didn't make much money and you

are not required to file a tax return

and you should not waste your time

filing a tax return this is the scenario

you are single you're not claiming a

child and your only source of income is

you working as an employee and you made

under twelve thousand two hundred

dollars if that's your situation you are

not required to file a tax return

however let's check out to see whether

is you're worth your time filing a tax

return that's quite simple to do so pull

up your w-2 look at box two of your w-2

if you file your tax return that's how

much money will be refunded back to you

your box - if that box - value is zero

or a very small amount that's not worth

your time then

I'll file your tax return don't waste

your time don't be silly if that number

is a large value then you should

definitely file your tax return them

because that's the amount of money then

you will be refunded by filing a tax

return scenario two

you are married filing jointly you are

not claiming a child and you and your

spouse as employees or as an employee

earned under twenty four thousand four

hundred in this situation you are not

required to file a tax return however

you do the same exercise to see if it is

worth it for you to file a tax return

pull up your w-2s your w-2 your spouse

is w2 check out box two of the w2's sum

those up that's how much money you will

get refunded back to you if you file

your tax return if that value is zero or

a small amount that's not worth your

time - don't waste your time filing a

tax return if that value is a larger

number that's worth your time recouping

then please go ahead and file that tax

return and you will get that refunded

back to you here are situations where

you are not required to file a tax

return but you absolutely should here's

the next scenario you are single you are

claiming a child or children and you

worked as an employee and made under

eighteen thousand three hundred and

fifty dollars if that's the case you are

not required to file a tax return

however you would be the biggest sucker

for not filing a tax return because pull

up your w-2 look at what's listed on box

two of your w-2 that's how much money

that will be refunded back to you and on

top of this you're going to get

additional free money in the form of the

earned income tax credits and also there

are fundable child tax credits it's

gonna be a lot of money it's gonna be a

big refund if that's your scenario so in

that situation you absolutely want to

file even though you are not required to

do so the next scenario is similar it's

a similar concept

you're just married filing jointly

you're married filing jointly you are

claiming a child or children and your

earned income from working as an

employee is under twenty four thousand

four hundred if that's the case you are

not required to file a tax return

however again you would be so silly

not to because check out your w-2s

whatever is listed you sum up box two of

your w-2s whatever is listed that will

be refunded back to you and on top will

be the earned income tax credits and

also the refundable child tax credit in

this case you're not required to file

while you absolutely without a doubt

wants you

moving on to self-employed people if you

made over $400 in profits from your

business from contracting consulting

your Hustle whatever it is that you do

for self-employment income then you are

required to file tax return

unfortunately the reason why the

threshold is so low four hundred dollars

compared to the other scenarios is

because of the self-employment tax

that's what's causing this problem or

this issue basically the standard

deduction you know that deduction that

everybody can opt to claim that reduces

your income subject to federal income

taxes however as a self-employed person

that does you no good because the

standard deduction only reduces the

income subject to federal income taxes

not the income subject to

self-employment taxes which is really

Social Security Medicare so

unfortunately if you're self-employed

that you're making over four hundred

dollars in profit you need to file a tax

return let's talk about what your child

may need to file their own separate tax

return if you're claiming your child as

your dependents and they made working as

an employee twelve thousand two hundred

dollars or less in that situation they

do not need to file their own separate

tax return if they're making more than

that then yes they need to file their

own separate tax return an additional

rule is that if your child made eleven

hundred dollars or more in interest

and/or dividend income then

unfortunately they need to file their

own separate tax return now if your kids

not required to file that

tax return I'm not saying that they

shouldn't again it depends on whether

it's worth your time filing one for them

or having them file their own tax return

all you need to do to determine whether

it's worth your time or worth their time

is to look at their box two box two of

their w-2 that's how much money that

they will be refunded back to them if

they file their own tax return another

situation where they may still want to

file a tax return when they are not

required to do so is if they are an

undergrad and they qualify for the

American Opportunity Education tax

credit all right thanks for hanging with

me through all that boring stuff now

that we go all that boring material out

of the way let's talk about retirement

income and so it's just security

benefits but first let me say that if

you are at least 65 years old you get an

increase in your standard deduction

you also get an increase in your

standard deduction if your spouse is 65

years old if you are blind

and/or if your spouse is blind the

largest standard reduction would be for

a married couple that are both at least

65 years old and are both blind if you

receive only Social Security benefits

then that income will not be taxable to

you and in that situation you will not

be required to file your own tax return

now this post is the question that then

when are social security benefits

taxable this is going to be a rough

guideline of when Social Security

benefits are taxable you're going to

take let me just say that it's going to

depend on your other sources of income

outside of your Social Security benefits

so the general equation or the the rough

equation is you take half of your Social

Security benefits and then you add on

all your other forms of income that are

subject to tax

half the social care benefits and your

other income if that amount is going to

exceed $25,000 as a single person or

$32,000 as a married filing joint couple

but in that situation a portion of your

social secur

benefits will be taxable if you have a

mix of Social Security income

pension income IRA income perhaps some

taxable investment income such as

interest or dividends basically and

ultimately what you're trying to do is

see if that income that is subject to

tax is below the standard deduction

amounts if it's below the standard

deduction amount then you are not

required to file a tax return if it's

over the standard deduction amount then

yes you are required to file a tax

return but remember it depends on your

standard deduction because you get an

increase in your set in your standard

deduction if you're 65 and up or if you

are blind just as a reminder the

qualified Roth IRA distributions they

will not count as income to you the 401k

distributions that will be taxable

income to you and before we talk about

traditional IRAs and pensions just know

that when I say pre-tax money that just

means money that has not been taxed yet

so money in a retirement accounts that

has not been taxed yet or money that you

put into a retirement accounts and you

received a deduction for putting one for

putting that money into the retirement

accounts and when I say after-tax

dollars that just means that money in a

retirement account that you've already

paid tax on or money that you put into a

retirement account and you did not get a

deduction so please distinguish between

pre-tax money and after-tax money for

example if you get paid as an employee

and you defer some of your compensation

into a 401k plan then that's pre-tax

money that's sitting in that 401k plan

because you did not pay any taxes on

that money yet so that's pre-tax money

this is in contrast to money that you

put into the Roth 401k if you did that

you've already paid taxes on that money

and it's sitting in the Roth 401k plan

as after tax

so that's after-tax dollars in the Roth

401k plan another example is if you put

money into a traditional IRA and you

receive the deduction for it then it's

pre-tax money in contrast if you put

money into the traditional IRA and you

did not receive a deduction for that a

non deductible contribution then that's

after-tax dollars if you have a

traditional IRA distribution how much of

that distribution is taxable income to

you depends on the composition of the

funds in the traditional IRA for example

if your traditional IRA is composed of

50 percents pre-tax money and 50

percents after-tax dollars in that

situation 50% of your distribution will

be taxable income in a situation where a

hundred percent of your funds in the

traditional IRA our pre-tax dollars then

a hundred percent of your distribution

will be taxable income to you pension

income is taxable to you if you do not

contribute to the pension or if your

employer did not take part of your

salary to put into the pension pensions

are usually funded with pre-tax dollars

your pension income is only partially

taxable if contributions to the pension

were funded with after-tax dollars but

remember we're talking about 401ks roth

401 k's pensions traditional areas Roth

IRAs just to see if these count towards

your taxable income which triggers your

Social Security benefits being taxable

that's ultimately what's going on here

and if your income subject to tax is

below the standard deduction amount then

you are not required to file a tax

return as you witness the question of do

I need to file taxes is really dependent

upon your unique situation I hope that

you got some value out of this video if

you did please support our channel with

the thumbs

and please subscribe thanks so much for

tuning in and until next time take care