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By the Numbers
Do you need to file a return? Well, there are multiple ways to look at this question. Here is a nice breakdown:
| You will have to file a 2007 tax return if you are -- | And your gross income is at least -- |
| Single Under age 65 Age 65 or older on or before January 1, 2008 |
$8,750 $10,050 |
| Married and living together at the end of 2007 Filing a joint return -- both spouses under age 65 Filing a joint return -- one spouse age 65 or older Filing a joint return -- both spouses age 65 or older Filing a separate return (any age) |
$17,500 $18,550 $19,600 $3,400 |
| Married and living apart at the end of 2007 Filing a joint or separate return |
$3,400 |
| Head of a household maintained for a child or other relative Under age 65 Age 65 or older on or before January 1, 2008 |
$11,250 $12,550 |
| Widowed in 2006 or 2005 and have a dependent child Under age 65 Age 65 or older on or before January 1, 2008 |
$14,100 $15,150 |
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Marital Status
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When I'm 65...
It seems like an easy question. But, as with many things having to do with taxes, you can be 65 in the year 2007 even if you're not.
Whether you are age 65 or older is generally determined by having a birthday on or before the end of the year, but if your 65th birthday is on January 1, 2008, you are treated as being age 65 at the end of 2007.
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A Quick Look at Gross Income
Gross income is generally all the income that you received in 2007, except for items specifically exempt from tax.
Include wages and tips, self-employment income, taxable scholarships, taxable interest and dividends, capital gains, taxable pensions and annuities, rents, and trust distributions. Home sale proceeds that are tax free and tax-free foreign earned income are considered gross income for purposes of the filing test.
Exclude tax-exempt interest, tax-free fringe benefits, qualifying scholarships, and life insurance. Also exclude Social Security benefits unless you are married filing separately and you lived with your spouse at any time during 2007.
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Other Situations When You Must File
Even if you are not required to file under the gross income tests listed above, you must file a 2007 return if:
- You are self-employed and you owe self-employment tax because your net self-employment earnings for 2007 is $400 or more, or
- You are entitled to a refund of taxes withheld from your wages or a refund based on the earned income credit for working families, or
- You received any earned income credit payments in advance from your employer, or
- You owe any special tax such as alternative minimum tax, IRA penalty, and FICA on tips, or
- You are a nonresident alien with a U.S. business or have tax liability not covered by withholding; see Form 1040NR.
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Filing Tests for Dependents
If you can be claimed as a dependent by your parent, or by any other taxpayer, here is how to determine if you must file a return in 2007. (Or, if you are the parent, here is how to determine if your dependent must file a return.)
The income threshold for filing a tax return is generally lower for an individual who may be claimed as a dependent than for a nondependent. You are a "dependent" if you are the qualifying child or qualifying relative of another taxpayer, and the other tests for dependents are met.
If you may be claimed as a dependent by someone else, use the chart below to determine if you must file a 2007 return. Unearned income includes taxable interest and dividends, capital gains, pensions, annuities, unemployment compensation, and distributions of unearned income from a trust. Earned income includes wages, tips, self-employment income, and taxable scholarships or fellowships. Gross income is the total of unearned and earned income.
For married dependents, the filing requirements in the chart assume that the dependent is filing a separate return and not a joint return. Generally, a married person who files a joint return may not be claimed as a dependent by a third party who provides support.
If you are the parent of a dependent child who was under age 18 on January 1, 2007, and who had only investment income, you may elect to report the child's income on your own return instead of filing a separate return for the child.
For purposes of the following chart, a person is treated as being age 65 (or older) if his or her 65th birthday is on or before January 1, 2008. Blindness is determined as of December 31, 2007.
File a return for 2007 if you are a --
Single dependent. Were you age 65 or older, or blind?
No. You must file a return if any of the following apply:
- Your unearned income was over $850.
- Your earned income was over $5,350.
- Your gross income was more than the larger of:
- $850 or
- your earned income (up to $5,050) plus $300.
Yes. You must file a return if any of the following apply:
- Your unearned income was over $2,150 ($3,450 if 65 or older and blind).
- Your earned income was over $6,650 ($7,950 if 65 or older and blind).
- Your gross income was more than:
- $850 or
- your earned income (up to $5,050) plus $300 plus $1,300 ($2,600 if 65 or older and blind).
Married dependent. Were you age 65 or older, or blind?
No. You must file a return if any of the following apply:
- Your unearned income was over $850.
- Your earned income was over $5,350.
- Your gross income was at least $5 and your spouse files a separate return and itemizes deductions.
- Your gross income was more than the larger of:
- $850 or
- your earned income (up to $5,050) plus $300.
Yes. You must file a return if any of the following apply
- Your unearned income was over $1,900 ($2,950 if 65 or older and blind).
- Your earned income was over $6,400 ($7,450 if 65 or older and blind).
- Your gross income was at least $5 and your spouse files a separate return and itemizes deductions.
- Your gross income was more than:
- $850 or
- your earned income (up to $5,050) plus $300 plus $1,050 ($2,100 if 65 or older and blind).
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Summary
- Whether or not you need to file a return is generally guided by your income, age, and filing status.
- Whether you are age 65 or older is generally determined by having a birthday on or before the end of the year, but if your 65th birthday is on January 1, 2008, you are treated as being age 65 at the end of 2007.
