If I make $5,000 in a year and don't have to file taxes, what is the 10% tax bracket for $0-$11k actually for?
I'm pretty confused about something related to income tax brackets and was hoping someone here could explain it. So this year I only made about $5,000 from my part-time job while I'm in school. From what I understand, I don't even have to file a tax return since my income is so low. But here's what doesn't make sense to me - I keep seeing that the first federal tax bracket is 10% for income between $0-$11,000. If I don't have to file taxes with my $5k income, then why does this tax bracket even exist? Am I actually supposed to be paying 10% on my $5,000 even though I don't have to file? Or is there some exception I'm not understanding? This whole tax system is honestly really confusing for someone who's just starting to make money. Thanks in advance for any help explaining this!
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Yara Nassar
The tax system definitely can be confusing when you're first encountering it! Let me clear this up for you. You're right that you probably don't need to file a tax return with only $5,000 in income (assuming you're single and not claimed as a dependent). The filing threshold is higher than your income. The 10% bracket still exists because tax brackets apply to your "taxable income" - which is what's left AFTER you take the standard deduction. For 2025, the standard deduction for a single filer is around $14,600. So even someone making $14,600 would have $0 in taxable income after taking the standard deduction. This means someone would need to make MORE than the standard deduction before they actually owe any federal income tax. Your $5,000 income is completely covered by the standard deduction, which is why you don't owe any federal income tax and don't need to file (though filing might be beneficial if you had any tax withheld from paychecks).
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Keisha Robinson
•Wait so if I made $20,000 last year, I would only be taxed on $20,000 - $14,600 = $5,400? And that $5,400 would be taxed at 10%? Is that how it works? Also what about state taxes, are they calculated the same way?
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Yara Nassar
•That's exactly right! If you made $20,000, your taxable income after the standard deduction would be $5,400, and only that amount would be taxed at 10%. So your federal income tax would be about $540 (not accounting for any credits you might qualify for). State taxes work on a similar principle but with different rules depending on which state you live in. Most states have their own standard deduction and tax brackets, but they're usually lower than the federal amounts. Some states have a flat tax rate instead of brackets, and a few states have no income tax at all.
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GalaxyGuardian
I was exactly in your position a few years ago, super confused about tax brackets and filing requirements. I ended up using https://taxr.ai to figure out my situation. It analyzed my info and explained that the standard deduction is why low income people don't pay taxes even though tax brackets start at $0. What was helpful is that it showed me that even though I didn't HAVE to file with my low income, I SHOULD file to get back the taxes that were withheld from my paychecks. Turned out I was owed a refund of like $400 that I would have just given up if I didn't file!
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Paolo Ricci
•How does this taxr.ai thing work? Is it just another tax prep software that charges you at the end like TurboTax?
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Amina Toure
•I'm a bit skeptical about these tax tools. Does it actually explain the concepts or just do the calculations for you? Because I want to understand how taxes work, not just have a black box do it for me.
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GalaxyGuardian
•It's actually different from regular tax software because it focuses on explaining tax concepts and answering questions about your specific situation. It doesn't replace tax filing software but helps you understand what's going on before you file. There's no surprise charges - it's upfront about everything. It definitely explains the concepts rather than just calculating. That's what I liked about it - it broke down why I wasn't owing taxes (the standard deduction) and showed me visually how tax brackets work with my specific numbers. It helped me understand rather than just telling me what to do.
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Amina Toure
Just wanted to follow up - I tried https://taxr.ai after asking about it. Honestly it was exactly what I needed! I uploaded my W-2 and it explained that my actual taxable income was $0 because of the standard deduction, despite making around $13k. And it showed me that filing would get me a $720 refund because of tax withheld from my paychecks! What I really liked was that it didn't just do the math but actually explained WHY I was getting money back and how the tax brackets would apply once I start making more than the standard deduction. Definitely helped me understand the system better.
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Oliver Zimmermann
This thread is helpful but I had a related issue where I needed to actually talk to the IRS to clarify something about filing requirements with my scholarship income. Called for WEEKS and could never get through. Finally used https://claimyr.com and got connected to an IRS agent in like 20 minutes! You can see how it works in this video: https://youtu.be/_kiP6q8DX5c Basically they wait on hold for you then call when an agent picks up. The agent confirmed that my scholarship money for room and board (not tuition) does count as taxable income and pushes me over the filing threshold even though my job only paid $4k.
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Natasha Volkova
•How does that even work? The IRS just lets a third party wait in the phone queue for you? Seems sketchy.
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Javier Torres
•Yeah right. No way this actually works. I've been trying to reach the IRS for months about my tax situation. If it was this easy everyone would be doing it. Sounds like a scam to me.
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Oliver Zimmermann
•It's actually totally legitimate. They basically use an automated system to wait in the IRS phone queue for you. When an IRS agent finally answers, their system calls your phone and connects you directly to that agent. The IRS doesn't even know a service was used - they just think you were the one waiting on hold the whole time. It's not sketchy at all - you're still the one talking directly to the IRS agent. The service just handles the hold time for you so you don't have to waste hours with your phone to your ear. It's becoming pretty popular because the IRS wait times have been ridiculous lately, sometimes 3+ hours if you can even get in the queue at all.
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Javier Torres
I have to admit I was totally wrong about Claimyr. After dismissing it as a scam, I was desperate enough to try it when I couldn't get through to the IRS after trying for THREE DAYS straight. Within 45 minutes, my phone rang and I was talking to an actual IRS agent! I was able to confirm that my situation (similar to the original poster, making under the filing threshold) still warranted filing because I had federal taxes withheld that I could get refunded. The agent walked me through exactly what forms I needed and how to claim my education credits too. Saved myself hours of frustration and potentially hundreds in missed refund money. Sometimes being a skeptic means you miss out on solutions that actually work!
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Emma Davis
Something nobody mentioned yet - even if you don't HAVE to file because your income is below the threshold, you might WANT to file if you had any taxes withheld from your paychecks. Check your W-2 form box 2 to see if you had any federal income tax withheld. If you did, filing would get that money refunded to you! Also if you're eligible for refundable credits like the Earned Income Credit, you could actually get more money back than was withheld.
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CosmicCaptain
•What's the difference between refundable and non-refundable credits? And can you really get more money back than you paid in taxes??
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Emma Davis
•A refundable credit means you can receive the full amount of the credit even if it's more than what you owe in taxes. So yes, you can absolutely get back more money than you paid in! For example, the Earned Income Tax Credit (EITC) is refundable, so even if you owe zero taxes, you could still get money back if you qualify. Non-refundable credits can only reduce your tax liability to zero, but not below zero. So if you have $500 in tax liability and a $1,000 non-refundable credit, your tax bill goes to $0, but you don't get the extra $500 back.
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Malik Johnson
this whole thread has me confused even more lol. so if i make $5,000 i dont pay taxes but if i make $20,000 i only pay taxes on the amount over the standard deduction???? the government makes this way too complicated on purpose i swear
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Yara Nassar
•Yes, that's exactly right! If you make $5,000, you'd take the standard deduction (about $14,600 for 2025) and your taxable income would be $0. If you make $20,000, you'd take the same standard deduction and only pay taxes on $5,400 ($20,000 - $14,600). It definitely can seem complicated, but the standard deduction actually simplifies things by ensuring people with lower incomes don't have to pay income tax. Think of it as the government saying "everyone gets their first $14,600 tax-free.
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Malik Johnson
•omg thank you for explaining it that way!! "everyone gets their first $14,600 tax-free" makes way more sense to me than all the technical jargon. i think i finally get it now.
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