Q: If my income is below the standard deduction, am I exempt from filing a federal income tax return?
A: In many cases, yes. If your income is below the standard deduction for your filing status and you’re subject only to regular income tax, you generally won’t be required to file a federal income tax return. But there are important exceptions!
Your tax return reports more than just income tax. The standard deduction can reduce the income subject to federal income tax to zero. But your federal tax return is also used to calculate and report other taxes, including self-employment tax.
Self-employment. If you have $400 or more of net earnings from self-employment, you generally must file a federal tax return – even if your income is below the standard deduction.
Suppose a single taxpayer has $10,000 of net self-employment income and no other income in 2026. That’s below the $16,100 standard deduction for a single taxpayer in 2026, so the taxpayer generally wouldn’t owe regular federal income tax. Because the taxpayer would generally owe self-employment tax, they would be required to file a federal tax return.
Other exceptions can apply. Self-employment isn’t the only situation in which someone may need to file even when their income is below the usual filing threshold. Dependents, for example, have different filing rules. We’ll look at those rules in an upcoming tip.
The bottom line: Not owing federal income tax and not having to file a tax return are different things. If you have self-employment income or another situation with its own filing requirements, you may still need to file even with income below the standard deduction.
Even when you aren’t required to file, filing may still benefit you if you’re entitled to a refund or a refundable tax credit.
Send questions about your taxes to Vincent Hicks, a CPA based in Cambridge who has more than 20 years of experience, at vincent@hickscpasolutions.com. You can call Hicks at (859) 553-0788.