How Much Money Can You Make Without Paying Taxes?

How much money can you make without paying taxes? Well, this depends where you live of course. We cannot cover all of the different countries so we have confined this post to the amount you can earn without having to pay tax in the United States.

If you live elsewhere then there should be information available online through official government websites for your country. Taxation can be a complex issue and you will need to take a number of things into consideration if they apply to your situation. It is in your interest to know what the taxation laws are in your country.

How much Money can you make without Paying Taxes as a Single Person?

For the first example we will assume that you are a single person filing taxes. Different rules will apply if you are married, have dependents or are in another situation. We will look at a single person’s tax situation first as it is the easiest to understand.

If you are a single person under 65 years old, the most money that you can earn without paying tax is $12,200. This is a gross figure for the year. For a single person that is 65 years of age or older, the maximum for a single person rises to $13,850.

If you are Married how much can you make without Paying Tax?

What about if you are married? With a joint tax filing there is an age variant to take into consideration. If you and your spouse are both under 65 then you can earn double what a single person can earn without having to pay any tax which is $24,400.

In a situation where both you and your spouse are 65 or older, the minimum money you can make without having to pay any tax is $27,000. Where one partner is 65 or older and the other is under 65 then it is just a case of splitting the difference. Here you can earn up to $25,700 without needing to pay tax.

The rules change considerably if you are married but want to file taxes separately. In this situation the maximum that you can earn without the need to file any taxes is only $5. So, it is better for you to sort out your financial arrangements as a couple.

Head of Household Status and Paying Tax

There is another classification in the US called “head of household”. You can make a claim to be head of household if you are unmarried but have at least one dependent. Another qualification for this status is that you are paying over 50% of the expenses for your household. It sounds simple but there are quite a few gray areas with this qualification.

We cannot get into all of the head of household complexities here so if you do qualify for this status and you are younger than 65 you can make up to $18,350 without having to file for taxation. For head of households 65 and older the maximum gross income you can make without taxation is $20,000.

If you are a Single Dependent, how much can you earn without paying Tax?

As a dependent that someone else is claiming on their tax return it doesn’t mean that you will not have to file for taxes yourself. There are different factors involved here which we will explain. You need to take into account what you earn as well as any unearned or passive income you have. There are age factors here and if you are blind this will have a bearing.

For a single dependent who is younger than 65 and not blind, you will need to file taxes in the following situations:

  • Your unearned income exceeded $1,100
  • Your earned income exceeded $12,200
  • Your total gross income exceeded the threshold for unearned income or earned income

As a single dependent of 65 or older, or if you are a blind person, you will need to file for taxes in these situations:

  • Your unearned income exceeded $2,750
  • Your earned income exceeded $13,850
  • Your total gross income exceeded the threshold for unearned income or earned income

If you are single and 65 or older and blind then you have to make a tax return if:

  • Your unearned income exceeded $4,400
  • Your earned income exceeded $15,500
  • Your total gross income exceeded the threshold for unearned income or earned income

What if you are a Married Dependent?

Married dependents less than 65 years old who are not blind need to file a tax return in these situations:

  • Your unearned income exceeded $1,100
  • Your earned income exceeded $12,200
  • If you make separate tax returns and you earn more than $5 when your spouse has filed a return with deductions itemized
  • Your total gross income exceeded the threshold for unearned income or earned income

For married dependents of 65 and up or blind married dependents you have to file for taxes if:

  • Your unearned income exceeded $2,400
  • Your earned income exceeded $13,500
  • If you make separate tax returns and you earn more than $5 when your spouse has filed a return with deductions itemized
  • Your total gross income exceeded the threshold for unearned income or earned income

For a married dependent that is 65 or over and blind you need to pay tax if:

  • Your unearned income exceeded $3,700
  • Your earned income exceeded $14,800
  • If you make separate tax returns and you earn more than $5 when your spouse has filed a return with deductions itemized
  • Your total gross income exceeded the threshold for unearned income or earned income

Conclusion

As you can see, how much money can you earn without paying taxes is not always a straight forward thing to work out. If you need further advice on this then consult with a professional that is well versed in taxation law for your country.

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