In Some Cases, You Don't Need to File a Tax Return

Updated on January 20, 2009.

IF YOU'VE CLICKED on this article, you're probably hoping you don't need to file a tax return this year. Obviously, most people do. But if your income was low enough, you may be off the hook. Here's what you need to know.

So how low is low? See the 2008 maximums in the table below. If your income was below that amount, you probably don't need to file a federal return for 2008. (Just because you're not required to file a federal Form 1040 doesn't necessarily mean you're also excused from filing state and/or local income tax returns. Check on that before concluding you're entirely in the clear.)

For this purpose, gross income basically means potentially taxable income from all sources, including income from outside the U.S. (even if the tax rules allow you to exclude all or part of that income). Don't include Social Security benefits unless you use married filing separate status and lived with your spouse at any time during 2008. However, if you received Social Security benefits, you will need to do a separate calculation using the worksheet provided in the Form 1040 instructions to see if any of your benefits are taxable. If they are, you generally must file a return.

Reduced gross income thresholds apply if you're claimed as a dependent on another person's Form 1040 for 2008. In this case, you cannot file jointly with your spouse if you're married (you must file using married filing separate status in order to be claimed as a dependent on another person's return). Once again, these income thresholds are based on the 2008 standard deduction and personal exemption amounts, and they depend on which of the following four scenarios you fit into.

Regardless of your gross income, you must file a 2008 Form 1040 if you are in any of the following situations.