Tax return filing requirements

[Patrice1986]

Hello!  I know that you are required to file a tax return when your total income exceeds a certain minimum amount.  However, I have heard that in certain special cases, you are required to file even if your total income is below the minimum income threshold amount (particularly if you have self-employment income).  Are there any other cases when you'd be required to file regardless of total income amount? 

I ask because I was wondering if making an early withdrawal from a Traditional IRA would cause you to be required to file even if you are still below the minimum income threshold with the rest of your income included.  I know in some cases it is worth it to file even if you're not required.  I did have Federal taxes withheld on the withdrawal.  Since you're usually penalized for withdrawing early, I was wondering if the benefit of getting the withholdings refunded would outweigh the penalty.  I'd appreciate any feedback on this matter.  Thank you!  

[Loretta P]

Regardless of special circumstances, you are expected to file a tax return if you owe taxes other than income tax. These taxes include Social Security taxes, alternative minimum taxes, or household employment taxes. Other situations where you will also have to file include: if you're self-employed and earned at least $400 during the year, or if you received distributions from a health savings account.

Although you may not be required to file a tax return, you may still want to file a tax return if you had any withholdings that can be refunded, or if you qualify for any refundable credits.

Does Everyone Need to File an Income Tax Return?

Do You Have to File an Income Tax Return? 

Making the early withdrawal from a Traditional IRA would fall under the special circumstances requiring you to file a return as you may owe taxes and penalty on the early withdrawal.  The federal taxes withheld would be applied on the return toward the taxes and/or penalty due.