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Income Tax Return Filing Requirements Explained! (How To Know When To File An Income Tax Return) - YouTube
Channel: Money and Life TV
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well what's going on everybody it is so
good to see your smiling faces once
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again I hope you guys have been doing
well as you guys know I am Mike the CPA
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and on this channel we teach people how
to be fiscally fit as we teach finances
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investing and taxes and today's video is
a tax video and a crucial one at that so
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this is one of those tax topics that I
feel that really really really should be
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taught in school! But unfortunately
school does not teach it in today's
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video we're going to be covering the
2018 1040 individual income tax return
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filing requirements so that if you're
out there and maybe you just started
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working or maybe you're uncertain of
what the filing requirements are you're
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gonna learn what they are today you're
gonna know whether or not you actually
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need to file a tax return or not now
like I said it's a shame that school
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doesn't teach this it's a it's really
sad they don't but hey you know what I
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should be thanking the school system for
dropping the ball here I'm teaching a
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very crucial life skill because gives me
more opportunity and it gives me a
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chance to explain this stuff to you guys
over YouTube so what I've done guys is I
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put this Word document together for you
and it's free to download I'm gonna have
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a Dropbox link I'm gonna put a Dropbox
link in the description section below
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the video and in the comment section of
this video so you can find it and
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download it for yourself it's completely
free no strings attached
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okay so before we look at all the other
stuff let's start with the income let's
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explain what type of income we're
talking about here on this form so it
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includes earned income so earned income
is what is what guys it's it's probably
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as you guess it's your wages it's your
salary
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it could be tips if you're like a waiter
or waitress professional fees if you're
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a lawyer or an accountant you charge our
consulting fees things like that taxable
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scholarship income fellowship grants
that are taxable so those are all the
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things that would count towards your
earned income now you're in terms of
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gross income that what they mean by
gross income is that is your total of
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your unearned income plus all of your
earned income so gross income is your
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total of your on earned income plus your
earned income so what the heck is on
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earned income because I would love some
of that it sounds great right it
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actually is so aren't earned income
where we have right here what it says is
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unearned income includes taxable
interest ordinary dividends and capital
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gain distributions it also includes
unemployment compensation taxable Social
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Security benefits pension distributions
and new T distributions and
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distributions of on to earn income from
a trust so those are examples of onto
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earned income and you're gonna see why
that's important in just a little bit
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back to the top of this worksheet and
work our way down and this won't take
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too long because like I said guys I'm
not gonna read everything to you because
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it's because everybody has different
filing situations I'm just gonna focus
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on the status for Finke single filers
let's just do that because the rest of
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these are just different filing statuses
but the idea is the same so as long as
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you understand this first one and how
what these columns mean you're good
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you're gonna be able to figure out the
rest for yourself so I'm just gonna
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cover this area but you can see here I
have information for married filing
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joint if you're head of household filer
or if your status is married filing
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separate all the information it's in
here for you remember guys this
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worksheet is for educational purposes
only and I really do mean that is
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there's always a chance I make them I
can make a mistake
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I am I
human there is no cyborg Terminator
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skeleton hiding beneath my skin I
actually am a human and so there's
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always a chance I can make mistakes now
where did I pull this information just
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so you guys know I did pull this
information from if you go to Google I'm
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showing you this here so you how you how
you can find it for yourself if you type
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in 2018 1040 instructions click this
first link and voila here they are so
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here's the actual instructions and this
is where you can go as the each year
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goes by so for you know next year
they'll have 2019 1040 instructions the
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year after that left 2020 1040
instructions well if you scroll down
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here a little bit I'll show you where
you can find this filing requirement
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information it's all in the instructions
so if you go down a little bits a little
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bit and here we go so it starts right
here so about like 10 pages an or so
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this is where it starts so there's a
chart a that talks about the filing
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statuses income limits etc chart B is
when you're you're a child or who you're
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a dependent of somebody else that's
where these rules apply and chart C is
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the other filing situations where other
reasons or times you might have to file
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regardless if you have income or not so
though there are special circumstances
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to definitely look into
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alright guys so the way to look at this
is there's seven primary factors that
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really determine whether or not you have
to file the first one's your filing
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status the tax you're in is gonna matter
because the requirements are always
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changing from year to year whether or
not you're a dependent of somebody else
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matters your age matters how much earned
income you have how much unearned income
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you have and if your are self-employed
so those are the seven leading factors
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that determine whether or not you have
to file a tax return for this video I'm
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primarily just gonna focus on the filing
requirements for a single person or a
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person who files single but also scroll
through the worksheet just real quickly
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real briefly so you can pause the video
if you're another filing status such as
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married filing joint qualifying widower
or head of household the way to read
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this is start from left to right and now
in this example the person's gonna be
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single right but I did include tax year
2017 so you can compare and contrast how
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things have changed from 17 and into 18
so in 2018 if your filing status is
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single and you're not a dependent of
somebody else and you're under the age
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of 65 you don't have to file a tax
return and tell your income exceeds
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$12,000 of earned income from from wages
tips fees etc you don't have to worry
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about under income at this point it's
just in total if you're if you're 12 if
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your total earned income is $12,000 or
less you're fine the logic behind that
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is because your standard deduction is
$12,000 it would if you had $12,000 in
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income and you had $12,000 in standard
deduction it would completely net to
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zero then so that's why you don't have
to file and tell your income exceeds
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that amount I will say just real briefly
here before we move on is that you might
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even though even if you aren't required
to file if let's say so let's say this a
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person made 10 grand and they paid some
income taxes in the federal if they had
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federal income taxes withheld on our
check they had state income taxes
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withheld on their check well even though
technically they don't have to file they
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still might want to because they would
able to they would be able to get a
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refund
for those taxes they're not going to
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only tax but they were able by filing a
tax return they would be able to receive
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a refund back for all the taxes the
federal and state income taxes that were
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withheld from their paychecks so that's
that's a reason to file even if you
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don't need to and the IRS unfortunately
you know once the money's in their hands
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they're not gonna send it back to you
until you file a tax return so that's
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why you if you want your money back you
have to file a tax return to get it you
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guys are gonna know this for
self-employed individuals all you have
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to do is make a 400 bucks and when it
says 400 bucks it's a net income of 400
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bucks so it's if your tol
self-employment income after income you
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take your income minus your expenses is
$400 or greater then you're gonna have
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to file a tax return even if your income
doesn't even reach these other amounts
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all it takes is 400 bucks of net and
self-employment income and you're gonna
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be needing to file a tax return the only
other thing I want to point out for you
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guys here for a single status filer
is if you are a dependent of somebody
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else and somebody else you know if you
if you lived F with them full-time
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they're paying the majority of your
expenses and so on and so forth you
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would have to file if one if you're on
during if your earned income was 12,000
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or more or two even if you just had
honored and income of one thousand fifty
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dollars or more you would have to file
so that's when this on earned income
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column comes into play if you guys
remember on an income as your capital
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gains your interest dividends and things
like that I'm just going to scroll
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through this real slowly now so you guys
can see the other filing statuses feel
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free to pause the video at any point I'm
not going to take the time to explain it
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but you can look at it on screen to see
if you need to file
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couple things I want to point out if
you're somebody who files married filing
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separate there's some special rules so
it's they're pretty silly but these are
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the rules so if you if you're under the
age of 65 and you want to file married
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filing separately and somebody else can
claim you as a dependent your if your
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income was at least five dollars I'm not
kidding it actually says five dollars on
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the instructions as well and your spouse
files a separator and itemizes
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deductions you're gonna have to file if
your gross income was more than the
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larger of 1,050 bucks or your earned
income was up to six six thousand three
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fifty dollars or greater
you're gonna have to file so there's
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very special circumstances if you are
income I should say requirements for
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filing if you filed married filing
separately so be looking for that and I
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included in the word document for you
guys there's so here's the filing
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statuses for a qualifying widower but
down at the bottom of this word doc if
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we go down to chart a which I've
included in the word doc directly from
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the instructions this is where it talks
about married filing separately as you
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can see if your income is at least five
bucks I don't know who comes up with
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this stuff
five dollars really five bucks why not
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$4.99 oh gosh but that's what it is for
married filing separately higher if you
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are over the age of 65 you get a higher
standard deduction so let me go back up
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the single so as you notice that there
you get a little bit higher income
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threshold before you hit the file if
you're over the age of 65 there's also a
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special provision if you're 65 and older
and blind you give me an even higher
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increment I didn't include it here
because it just it was taking so much
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time to include all this detail if you
want to find what those amounts are just
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come down here and within these
instructions is where you're gonna find
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that information it's on shard B in
chart B it will talk about it within
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this area if you're if a person is 65
years of age or older or blind
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these are six areas are things to look
for that would require you to file a tax
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return besides the ones we discussed up
here and like I said guys all this
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information can be found in the
instructions but really I think if you
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like to download this word document for
free that I've put together for you and
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I think it's gonna be a great resource
for you to use going forward like I said
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it's a really it's a shame in my opinion
they don't teach this stuff in school
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because so many kids when they first
enter the workforce they don't know
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anything about this stuff they have zero
knowledge so the only way they're gonna
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find out is if they talk to their
parents are trying to look up stuff
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online they're completely lost and it's
such a shame I understand you guys might
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have some questions so if you have any
questions at all about this stuff I'm
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happy to answer them to the best of my
ability just leave those questions down
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in the comments section down below and I
would be happy to get back to you and
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besides if you just even if you just
want to say hi that's fine I love
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reading what you guys have to say about
all this stuff alright guys if you liked
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the video make sure you drop a like
before you leave I'd really appreciate
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it share this information with a friend
especially somebody who's brand-new to
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the workforce if somebody who doesn't
have any clue of how this stuff works or
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if they just need to know what these new
tax filing requirements are for 2018 I
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know they'll find this helpful I'm sure
of it last but not least if your needs
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money in life TV I just want to say
welcome on this channel we're all about
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basis so if you're new to the channel
you want to join our community all you
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gotta do is hit that red subscribe
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to not miss any of our future uploads
thank you so much for hanging out with
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me I look forward to reading your
comments down below and I really hope
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you found this helpful
hope you guys have a great week stay
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chill and I'll see you in the next
episode bye guys love y'all peace
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