📘 Filing Requirements — Enrolled Agent (EA) | CPA Exam (REG)

Why It Matters

Missing a filing trigger can lead to penalties and audit risk, while knowing the exact thresholds empowers taxpayers and professionals to stay compliant and optimize tax strategy.

Key Takeaways

• Filing required when gross income exceeds filing threshold.
• Married filing separately triggers $5 filing threshold for anyone.
• Self‑employment income over $400 mandates filing regardless of deduction.
• Dependents must file if unearned income exceeds $1,350 threshold.
• Gig workers often miss filing due to 1099‑threshold myths.

Summary

The video explains when a tax return is legally required, emphasizing that filing is not automatic but triggered by gross income surpassing the filing threshold for a taxpayer’s status and age. It outlines the 2025 thresholds – $15,750 for single filers under 65, $23,625 for heads of household, $31,500 for married filing jointly, and higher limits for seniors – and notes that these amounts adjust annually.

Key data points include the shocking $5 filing trigger for married individuals filing separately, the $400 net‑earnings floor for self‑employed workers, and the $1,350 unearned‑income limit for dependents. The instructor also highlights special rules for seniors, gig‑economy participants, church employees, and those with alternative minimum tax or household employment taxes.

Illustrative examples reinforce the concepts: Arthur, a 67‑year‑old with $4,000 income, must file because of the $5 rule; a 16‑year‑old with $2,000 dividends must file despite modest wages; an Uber driver earning $500 profit must file even without a 1099; and a part‑time model with $5,900 self‑employment profit must attach Schedule C despite total income below the standard deduction.

The implications are clear for CPA and EA candidates and everyday taxpayers: understanding these thresholds prevents costly filing errors, ensures compliance with IRS rules, and avoids penalties. Accurate record‑keeping and awareness of status‑specific triggers are essential for tax planning and exam preparation.

Original Description

This lecture explains tax filing requirements, including who is required to file, income thresholds, exceptions, and reporting rules. Understanding these rules is essential for accurate compliance and is frequently tested on the Enrolled Agent (EA) exam and CPA Exam (REG).

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