Tax Tip: Who Must File A Tax Return?
There are some instances where you may not be required to file a tax return. But the IRS reminds you to keep a few things in mind. First, over 70 percent of all individual filers of federal income tax returns are due a tax refund, and it may be to your advantage to file, even if you are not required to. Next, the law requires you to file a tax return if your income is above a certain level. Please check the instructions for Form 1040, 1040A, or 1040EZ (under "filing requirements") for specific details that may affect your need to file a tax return with IRS this year.
Here are some general guidelines for anyone under age 65. Remember, these guidelines may change based on your particular situation. In general, if your gross income for the year 2000 is at least as much as these amounts, the law requires you to file a Federal tax return with the IRS:
- Single - $7,200
- Head of Household - $9,250
- Married Filing Jointly - $12,950
- Married Filing Separately$2,800
Generally, a person who is self-employed must file a tax return if his or her net earnings from self-employment for the year exceed $400.
Even individuals who don't earn enough to be required to file a tax return may be eligible for an earned income credit up to $2,353 for a taxpayer with one qualifying child and $3,888 for a taxpayer with two or more qualifying children. Some individuals who do not have a qualifying child may be eligible for a credit of up to $353. However, you must file a return to receive the Earned Income Credit. You must also file a return if you received any advance payments of this credit while you worked during the year.
For more information visit the IRS web site at www.irs.gov.
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This daily Tax Tip has been provided by the IRS