In general, you have to file a federal tax return if your total income is more than the standard deduction, which varies based on your age and filing status. Some instances require you to file even if your income is less than the standard deduction, such as having self-employment income, being claimed as a dependent on someone’s tax return and having earned or unearned income above certain thresholds, and filing separately as a married couple with gross income of $5 or more.
Some people, however, are off the hook when it comes to filing a state tax return.
That’s because seven US states didn’t impose state income tax for the 2020 tax year — Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.
