What is the Filing Threshold for a Single Person?

Ask Paywizard.org - What is my personal filing threshold for a single person? Paywizard.org answers.

Question - Date: 2009


What is meant by 'Personal Filing Threshold'? For your 2007 tax info, you state that filing threshold for a single person with no children and under 65, is $8,750. This suggests that if my income was less than $8,750 that I don't need to file and don't owe any taxes. Is that correct? 

Yet, you stated that the standard deduction for a single person si $5,350. Would this mean that if i earned $8,500 in 2007, that I would have to pay taxes on $3,150 if my parents use my personal exemption as a dependent? 

In conclusion, am i correct in assuming that I don't have to pay any taxes or file a return for 2007 if I earned less than $8,750? 


Answer Paywizard.org

If your filing status is single and your gross income or filing threshold was below $8,750 you probably didn't need to file a federal return for 2007. 

That doesn't mean you're excused from filing state and other local taxes. Check on that to be sure. 

And further more, you need to know what gross income exactly includes; that there are special rules for dependents; and that you have to file under some specific rules, even if you don't make the filing threshold.

To start with gross income, that is all the income you've earned in 2007: e.g. wages, tips, self-employment income, taxable scholarships, taxable interest, dividend, capital gains, pensions, annuities, rents and trust distributions. 
You may exclude tax-exempt interest, tax-free fringe benefits, qualifying scholarships, life insurance. 

You must file, even if you didn't make the filing threshold 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, (see your 2007 W-2 form) 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.

If you can be claimed as a dependent you have to file a return for 2007 if:

  • Your unearned income was over $2,150 (eg dividends, interest, rent income)
  • Your earned income was over $6,650 
  • Your gross income was more than:
  • $850 or
  • your earned income (up to $5,050) plus $300
  • plus $1,300 


You can ask the local taxpayer assistance center of the IRS for more information.