IRS Tax Filing Requirements for Individuals

IRS Tax Filing Requirements for Individuals

For the 2026 tax season, determining whether you are required to file a federal return for the 2025 tax year involves evaluating your income, your filing status, and your tax residency. With the recent passage of the One, Big, Beautiful Bill Act (OBBBA), several new thresholds and deductions have taken effect, making it essential to review your specific status before the April 15, 2026 deadline.

2025 Income Thresholds for Filing (in 2026)

The most common reason for filing is exceeding the Gross Income threshold. Gross income includes all income you receive in the form of money, goods, property, and services that isn’t exempt from tax.

Note: If you have net earnings from self-employment of $400 or more, you must file a tax return regardless of the gross income thresholds listed above.

Determining Your Tax Residency

The IRS taxes residents and non-residents differently. You are considered a U.S. Resident for Tax Purposes if you meet either of these two tests:

• The Green Card Test: You are a Lawful Permanent Resident of the United States at any time during the calendar year.
• The Substantial Presence Test: You were physically present in the U.S. for at least:
  • 31 days during 2025, AND
  • 183 days during the 3-year period (2023, 2024, and 2025), calculated as:
    • All days present in 2025, plus
    • of the days present in 2024, plus
    • of the days present in 2023.

New for 2026: OBBBA Tax Changes

The One, Big, Beautiful Bill Act has introduced several retroactive changes for the 2025 tax year that may affect your filing:

• Higher SALT Cap: The State and Local Tax (SALT) deduction cap has been increased to $40,000.
• Child Tax Credit: The credit has been increased to $2,200 per qualifying child.
• No Tax on Tips/Overtime: Qualified workers can deduct up to $25,000 in cash tips and $12,500 in overtime pay if earning below certain income limits ($150k Single / $300k Joint).
• Car Loan Interest: A new deduction of up to $10,000 is available for interest paid on loans for U.S.-assembled passenger vehicles.

Why You Might File Even If Not Required

Even if your income falls below the mandatory thresholds, filing a return may be beneficial to:

• Claim a Refund: Get back federal income tax withheld from your pay.
• Claim Refundable Credits: Access payments from the Earned Income Tax Credit (EITC) or the refundable portion of the Child Tax Credit.
• Establish a Record: A filed return serves as proof of income for loans, financial aid, or immigration purposes.

How KKCA Secures Your Status

We ensure you meet all filing obligations while maximizing your returns:

• Residency Optimization: We help visa holders (H-1B, F-1, L-1) determine their residency starting and ending dates to minimize worldwide tax exposure.
• Credit Maximization: We identify all eligible credits under the new 2026 laws, ensuring you don’t leave money on the table.
• Informational Disclosures: We manage mandatory foreign asset reporting (FBAR and FATCA) to protect you from harsh non-compliance penalties.

Call to Action

Looking for personalized tax services about your specific tax situation? Please contact us. We are here to help you with your specific tax matters.

Frequently Asked Questions (FAQ)

Q: Does the 183-day rule apply to students on F-1 visas? A: Usually, no. Students on F-1 visas are generally “Exempt Individuals” for their first five calendar years, meaning they do not count days toward the Substantial Presence Test for that period.

Q: What is the 2026 tax filing deadline? A: The deadline to file your 2025 tax return (or an extension) is Wednesday, April 15, 2026.

Q: Can I file for free in 2026? A: Yes. If your 2025 Adjusted Gross Income (AGI) was $89,000 or less, you can use IRS Free File guided software at no cost.

Disclaimer

This blog is intended for informational purposes only and does not constitute legal or tax advice. Please consult a qualified U.S. CPA or tax attorney for guidance specific to your situation.