If I Make Less Than $5,000 a Year, Do I Have to File Taxes

Making less than $5,000 in a year might sound like you can skip filing taxes altogether and in many cases, that’s true. If you’re not self-employed and didn’t have any special income, you likely aren’t required to file a federal return. 

But here’s the part most people miss not filing could mean leaving money on the table. Tax credits, refunds, and other benefits often go unclaimed just because someone assumes they don’t qualify. So before you decide it’s not worth your time, let’s walk through the real facts about filing taxes on low income and why it might still be a smart move.

If I Make Less Than $5,000 a Year Do I Have to File Taxes

Most of the time, if you made less than $5,000 and you're not self-employed, you don’t have to file a federal tax return. But here’s what many people miss you could still get money back. For example, if your job withheld just $300 in federal taxes, filing a return could get that $300 refunded. And if you qualify for the Earned Income Tax Credit (EITC), you might receive up to $600 or more, depending on your situation. So even with low income, filing could put real cash back in your pocket.

IRS Income Levels

The IRS sets a minimum income amount each year to decide who needs to file a tax return. These amounts depend on your filing status, your age, and whether someone else can claim you as a dependent.

Below is a quick comparison of the 2024 and 2025 tax year filing level:

So if you’re single and made less than $14,600 in 2025, you usually don’t need to file unless you had other types of income, got health insurance credits, or qualify for a tax refund or credit.

Conditions that Require Filing

Even if your income is less than $5,000, certain situations still require you to file a federal tax return:

Self-Employment: If you earned $400 or more from freelance work, gig jobs, or running a small business, you must file to report your income and pay self-employment taxes.

Refundable Tax Credits: If you're eligible for credits like the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC), filing a return is the only way to claim them even if you didn’t pay any taxes.

Health Coverage (Marketplace): If you received advance premium tax credits through the Affordable Care Act, you must file to reconcile the payments with your actual income.

Taxes Withheld from Paychecks: If an employer withheld federal income tax from your wages, filing a return allows you to get a refund even if your total income was low.

Unearned Income: If you earned interest, dividends, or other investment income above IRS limits, you may need to file even if your total income is under $5,000.

Being Claimed as a Dependent: Dependents have special filing rules. If you're claimed by someone else and earned income beyond IRS thresholds, you might still need to file your own return.

Can You Be Claimed as a Dependent?

If your parents or someone else claim you as a dependent on their tax return, your tax filing rules are a little different. The IRS has specific limits for dependents, and they’ve been updated every tax year.

You’ll need to file your own tax return in 2025 if you made:

• More than $1,300 in unearned income (like interest from a savings account or investment dividends)

• More than $14,600 in earned income (like from a part-time job or W-2 work)

• More than $400 from self-employment or side gigs (like freelancing, babysitting, or selling online)

Even if you earned less than these amounts, it might still be a good idea to file especially if you had taxes taken out of your paycheck or could qualify for a refund or tax credit. Many dependents end up getting money back just by filing.

Why File Taxes If You Made Under $5,000?

Sometimes, filing taxes isn’t just about rules it’s about not missing out on money that could be yours. Even if you’re not required to file, it might be worth doing. Here's why:

Get a Tax Refund Even If You Made Less Than $5,000

If you had any federal taxes taken out of your paycheck like $100, $300, or even more you won’t get that money back automatically. The IRS only issues a refund if you file a tax return. For many low-income workers, filing means getting every dollar back.

Claim Tax Credits Like EITC or ACTC

You may qualify for refundable credits like the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC). These credits can give you a refund of hundreds or even over $1,000 without needing to owe any tax at all. But you have to file to get them.

Filing Helps You Build a Tax Record for the Future

Even if your income is low, filing helps build your official tax history. That can make a difference later if you apply for a student loan, a personal loan, housing, or even certain benefits like Social Security or Medicaid. Having a paper trail shows financial responsibility.

How to File Taxes under $5,000?

If you made under $5,000, you may qualify for free tax filing help. The IRS Free File program is available for incomes below $79,000, and VITA centers offer in-person support for low to moderate earners. While free software exists, it’s always a good idea to work with a tax expert who can make sure everything is done right especially if you’re eligible for refunds or credits.

Common Tax Mistakes to Avoid

Filing taxes might seem simple when your income is low, but it’s still easy to make small mistakes. These errors can delay your refund or lead to IRS letters you don’t want.

• Typing the wrong Social Security number

• Not reporting money from side gigs or freelance work

• Leaving out health insurance or tax credit forms

• Missing the April 15 deadline

Are you Confused About Whether You Need to File Taxes?

If your income is under $5,000, filing might not be required but it depends on how you earned it and if you qualify for a refund or credit. Don’t guess and miss out. At SK Financial CPA, we’ve helped thousands of people in the same spot get their taxes done right and often get money back. With 23+ years of experience and 5-star reviews, we’re here to make it simple for you.

Book a free consultation with SK Financial CPA and let us help you figure it out, stress-free.

Conclusion

Filing taxes might not be required when your income is under $5,000, but skipping it without checking the full picture could cost you more than you think. Even small earnings can open the door to refunds or credits you didn’t expect. If you made less than $5,000 a year, do yourself a favor look beyond the numbers. A quick return could mean extra money, fewer problems down the road, and peace of mind knowing it’s all taken care of.

FAQs

1. Do I Have to File Taxes If I Made $4,000 in 2025?

If you earned $4,000 in 2025 and you're not self-employed, you likely don’t have to file. But if taxes were withheld or you qualify for refundable credits, filing could get you money back.

2. Can I Get a Tax Refund If I Made Less Than $5,000?

Yes. If your employer took federal taxes out of your paycheck, you could get a refund even if you made under $5,000. Filing is the only way to claim it.

3. What If I Made Less Than $5,000 From Freelance or Gig Work?

If you earned $400 or more from self-employment (like freelance, Uber, or online sales), the IRS requires you to file a tax return, no matter how low your total income is.

4. Do College Students Need to File Taxes If They Made Under $5,000?

It depends. If you're claimed as a dependent and earned income under the filing threshold, you may not be required to file but it could still be smart to file for a refund or credit.

5. What Happens If I Don’t File Taxes and I Made Under $5,000?

If you’re not required to file, there’s usually no penalty. But not filing means you could miss out on refunds, credits, or benefits that require a tax return as proof of income.

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