✅ 1. Do I need to file a tax return?
Answer:
You need to file a federal income tax return if your income is above a certain threshold, which varies based on:
- Filing status (Single, Married, Head of Household)
- Age
- Type of income (earned vs. unearned)
For example, in 2024, if you’re single and under 65, you must file if your gross income exceeds $13,850.
✅ 2. What is the standard deduction?
Answer:
The standard deduction is a fixed amount you can deduct from your income — no need for itemizing. For tax year 2024:
- Single: $14,600
- Married Filing Jointly: $29,200
- Head of Household: $21,900
✅ 3. What income is taxable in the U.S.?
Answer:
Taxable income includes:
- Wages, salaries, tips
- Self-employment income
- Interest and dividends
- Rental income
- Capital gains
- Some Social Security benefits (based on income)
Tax-free income includes: gifts, life insurance payouts, and qualified scholarships.
✅ 4. What are tax credits vs deductions?
Answer:
- Tax deductions reduce your taxable income (e.g., student loan interest, mortgage interest).
- Tax credits reduce your actual tax owed, dollar-for-dollar (e.g., Child Tax Credit, Earned Income Tax Credit).
Credits are usually more valuable than deductions.
✅ 5. When is the tax filing deadline?
Answer:
For most taxpayers, the deadline is April 15 each year.
If April 15 is a weekend or holiday, the deadline moves to the next business day.
You can request an extension (Form 4868), but taxes owed must still be paid by April 15 to avoid penalties.