Do I need to file a tax return if I am self-employed?

A person must file a tax return if their income exceeds the filing threshold. For 2023, these thresholds are:

  • Single: $13,850 or more for the year. For those over 65 by year-end, the threshold is $15,700.
  • Head of Household: $20,800 or more for the year. For those over 65 by year-end, the threshold is $22,650.
  • Married Filing Jointly: $27,700 if both spouses are under 65. If one spouse is under 65, the threshold is $29,200. If both are over 65, it is $30,700.
  • Married Filing Separately: $5 or more, regardless of age.
  • Qualified Surviving Spouse: $27,700 or more. For those over 65 by year-end, the threshold is $29,200.

Additionally, if you earned more than $400 in net income from self-employment, such as side gigs or freelance work, you are required to file a return.

Even if your income is below the threshold, it may be beneficial to file a return to claim a refund for taxes that were withheld from your paycheck. You might also be eligible for federal or state tax credits, which can be claimed by filing your return. It’s recommended to file if you qualify for any of the following credits:

  • Earned Income Credit
  • Additional Child Tax Credit
  • American Opportunity Credit
  • Credit for Federal Tax on Fuels
  • Premium Tax Credit
  • Credits for Sick and Family Leave

If you, your spouse (for joint filers), or a dependent was enrolled in a Marketplace health plan and received advance premium tax credit payments, you must file a return and include Form 8962. You should have received Form 1095-A from the Marketplace with details on your health coverage and any advance payments made.

It’s important to attach Form 8962, even if someone else enrolled you, your spouse, or your dependent. If you’re claimed as a dependent on someone else’s 2023 tax return, you don’t need to attach Form 8962.


Exemptions

There is an exception for certain children under 19 or full-time students under 24. In some cases, a parent can report the child’s income on their own return by using Form 8814, which allows the child to avoid filing a separate tax return.


Deceased Person’s Final Tax Return

A final tax return for a deceased individual is filed by the surviving spouse or the person’s legal representative. The deceased must meet the income filing requirements for the year. If their income does not reach the threshold, a return is not necessary. Unlike the surviving spouse, whose age is determined as of the last day of the year, the age of the deceased is based on the date of death.

While the IRS does not need a formal notice of the individual’s death, the final return should indicate the date of death. If you are filing a paper return for a deceased person, write “Deceased” followed by their full name and the date of death at the top of the return.

If the surviving spouse is filing a joint return, they should sign their name and include “Filing as surviving spouse” below their signature.