Must I File a Tax Return?

Must I File a Tax Return for 2009?

The short answer to this question, do I have to file a tax return, is yes if your income is above the level required for your filing status. But a couple additional pieces of information affect the answer including your age and the source of your income. IRS.gov is a great resource for the exact tax rules.

In addition to the requirement, it makes sense to file a return to get a refund on any taxes that you did pay during the year. There is the special tax credit, Making Work … Read the rest

Must I File a Tax Return for 2009?

The short answer to this question, do I have to file a tax return, is yes if your income is above the level required for your filing status. But a couple additional pieces of information affect the answer including your age and the source of your income. IRS.gov is a great resource for the exact tax rules.

In addition to the requirement, it makes sense to file a return to get a refund on any taxes that you did pay during the year. There is the special tax credit, Making Work Pay, that is refundable to you even if you do not meet the income requirements to file. A government pension could provide you with a tax credit that will be refunded to you. The Earned Income Tax Credit will also refund money to you beyond what you have paid into the tax system. And there are a number of other tax credits that you might qualify for that you can receive a refund on without having earned enough to file.

Now, if you were self-employed during 2009 and earned over $400, you must file a return regardless of other factors. If you owe special taxes on retirement plans or medical savings accounts, you must file a return for 2009. If you work for tips and need to pay social security and Medicare tax, you need to file. If you need to pay the Alternative Minimum Tax or any recapture tax, you need to file a return. And finally, if you work for a church and your income is greater that $108.28.

Exemptions and Dependents 101

Exemptions and Dependents 101

When preparing your federal 2009 tax return for filing, make sure to know the basic rules about exemptions and dependents. Understand what happens when someone claims you as a dependent or how exemptions affect your return. Your refund will be affected by all these conditions.

To begin with, when someone claims you as a dependent you may still need to file a return. Depending on your income, your filing status, special tax situations, or Advanced Earned Income you will need to file a return to the IRS. Check Publication 501 for exact details about … Read the rest

Exemptions and Dependents 101

When preparing your federal 2009 tax return for filing, make sure to know the basic rules about exemptions and dependents. Understand what happens when someone claims you as a dependent or how exemptions affect your return. Your refund will be affected by all these conditions.

To begin with, when someone claims you as a dependent you may still need to file a return. Depending on your income, your filing status, special tax situations, or Advanced Earned Income you will need to file a return to the IRS. Check Publication 501 for exact details about when you must file.

Exemptions are yourself and your dependents and they reduce your tax bill. The standard exemption is $3,650 but can be phased out when your income reaches certain levels. Now if you are being claimed as a dependent by someone else and you discover that you need to file a return, you cannot take the personal exemption.

Your spouse’s exemption will be claimed on your joint filing and could be claimed on your Married Filing Separate return. If your spouse did not earn any income during the tax year and is not claimed as a dependent by their parents, you can claim them on your separate return.

Other groups that cannot be claimed on your return include non US citizens, resident aliens, and residents of Mexico and Canada. The only exception is for an adopted child where you should consult your tax professional to see if they qualify.