Do You Have to Pay Taxes in the US If You’re Not Working?

Introduction

The US tax system is complex and regulated at both the federal and state levels. One of the key principles is that every tax resident must file a tax return. However, many people wonder: if a person is not working and does not receive a salary, are they still required to pay taxes? In this article, we’ll explore the main aspects of filing a tax return, who is required to file, what types of income are taxable, and when taxes can be avoided.

Is Every Resident Required to File a Tax Return?

According to US law, tax residents (citizens, green card holders, and individuals who spend more than 183 days in the country per year) must file a tax return if their income exceeds a certain threshold. However, even if a person is not working and has no wages, there are situations where filing a tax return is still necessary.

Main reasons to file a tax return:

• Legal requirement – if your income exceeds a certain minimum.
• Tax refund – you might be eligible for a refund even if you had no income.
• Social benefits – not filing a return may cause issues when applying for benefits and assistance.
• Future immigration – if you plan to apply for naturalization or a visa, having filed tax returns is important.

When Is Filing a Tax Return Mandatory?

1. If You Have Any Type of Income

Even if you are not officially employed, any type of income may be subject to tax. These include:

• Investment income (bank interest, dividends, income from selling stocks and bonds).
• Rental income – if you own and rent out property.
• Freelance or self-employment – working for yourself (e.g., freelancing through Upwork, Fiverr, etc.).
• Social Security – part of Social Security benefits may be taxable.
• Lottery and gambling winnings – all winnings must be reported.
• Inheritance and gifts – especially if received from abroad, may require reporting.

When Is Filing Not Required?

There are certain cases where filing a tax return is not mandatory:

1. If you have absolutely no income. If you didn’t receive any income during the tax year, you are not required to file a return.
2. If your income is below the minimum threshold. In 2024, the threshold is about $13,850 for single filers and $27,700 for married couples.
3. If you are a student with no income. In such cases, your parents may file a return on your behalf.
4. If you are claimed as a dependent (for example, if your spouse fully supports you).

Why File a Tax Return Even If You’re Not Working?

1. Tax refund

If taxes were withheld from previous employment, you may still be eligible for a refund even if you didn’t work this year.

2. Earned Income Tax Credit (EITC)

Even with a low income, you may qualify for tax credits if you have children or meet certain criteria.

3. Proof of financial status

Tax returns can be important when applying for housing, loans, mortgages, or a residency permit.

4. Immigration and visa issues

If you are a green card holder or applying for citizenship, filing tax returns is one of the requirements of immigration authorities.

What Taxes Can Be Withheld If You’re Not Working?

1. Federal income tax – withheld if you have taxable income.
2. State taxes – states have their own tax laws (e.g., Florida has no income tax, but New York does).
3. Medicare and Social Security taxes – if you worked previously, some of these taxes may have been withheld, and you may be eligible for a refund.
4. Property tax – if you own property, you must pay this tax regardless of employment status.
5. Gift tax – if you receive a large gift or inheritance, you may be required to report it.

Conclusion

Even if you are not working, the US tax system requires all residents to file a tax return in certain cases. This especially applies to those who receive any kind of income, even if not job-related. Filing can bring deductions, tax refunds, and simplify the process of getting loans, benefits, and even US citizenship.

If you still have questions about taxes or are unsure whether you need to file, our team of professional lawyers and tax consultants is here to help. We specialize in tax law in Florida and New York and will guide you through every detail!