Not Everybody Has to File a Return. What Are the Rules?

Believe it or not, some people make it through tax-filing season without any hassle. That's because the Internal Revenue Service doesn't require a return from them.

Unfortunately, most of us aren't that lucky. So just who has to file a tax return?

Three things must be considered when determining whether you have to file a return: your age, your filing status and your income. Generally, once you reach a certain income level for your filing status, the law requires you to file. The amounts are adjusted annually for inflation.

For 2005 tax returns, individuals younger than age 65 must file if they make at least:

• $8,200 as single filers
• $10,500 as head of household filers
• $16,400 as married couples filing jointly and both husband and wife are under age 65

The earnings threshold amounts go up a bit for older (65-plus) individuals:

• $9,450 for single filers
• $11,750 for head of household filers
• $17,400 for married couples filing jointly where one spouse is age 65 or older
• $18,400 for married couples filing jointly where both partners are 65 or older

The earnings target is the same -- $3,200 -- for married couples filing separately, regardless of age.

Special circumstances

Speaking of age, the IRS has a filing present for you if your 65th birthday is Jan. 1.

In most situations, your age for tax purposes depends upon how old you were on the last day of the year. But when it comes to determining whether you have to file a return, the IRS says if you turned 65 on New Year's Day 2006, you are considered to be 65 at the end of 2005. That one-day grace period allows you to use the higher income thresholds to determine whether you must file. And that means you can have earned hundreds more last year and still not have to send in a return this April.

There also are separate income thresholds for taxpayers who have special filing considerations.

In some cases, widows or widowers younger than 65 and who care for a dependent child can make up to $13,200 and not have to file a return. Individuals age 65 and older in this situation can earn up to $14,200. In the year a husband or wife dies, the surviving spouse still files a joint return. Then, if caring for a dependent child, he or she can use this status (rather than head of household with its lower earning limits) for two subsequent years as long as he or she does not remarry.