Intuit Academy Tax Practice Exam

Which of the following statements about filing taxes as a single taxpayer with minimal income is true?

1. Tax filing is optional

2. Must file even with no income

3. Can file only if receiving a refund

4. Only need to file if income exceeds $12,000

The correct answer is: Tax filing is optional

Filing taxes as a single taxpayer with minimal income often involves understanding both the requirements and options available. The correct answer indicates that filing taxes is optional for individuals who earn below a certain income threshold. Generally, if a single taxpayer's gross income is less than the standard deduction amount, they are not required to file a tax return. For 2023, the standard deduction for a single filer is $13,850. Therefore, if their income falls below this threshold, they can choose whether to file a return or not, making tax filing optional under those circumstances. This context gives insight into why the other statements do not hold true. For instance, the assertion that one must file even with no income is inaccurate, as having no income typically exempts an individual from the obligation to file. Similarly, the claim that an individual can file only to receive a refund is misleading because many may choose not to file at all if they don’t owe any taxes and their income didn’t exceed the minimum requirement. Lastly, indicating that one only needs to file if income exceeds $12,000 also misrepresents the threshold for tax filing because the actual threshold is tied to the standard deduction amount, which was higher than $12,000 for recent tax years.