Who Must File Tax Return | Do I Need To File Taxes | How Do I Know

how do i know if i need to file taxes

Posted By: Sandra February 4, 2011

The three common question that people usually ask us are, do I need to pay taxes, how do I know. As an expert on these laws, I have tried to simplify them to a great extent. Always remember that your status is dependent on the following factors:

Gross income

This is the income that you receive in the form of salary, goods, services and property and is the one that is considered for calculating the amount of tax you need to pay as per IRS tax laws.

Age

There are certain concessions for people who are 65 years and older and this needs to be considered prior to filing a tax return.

Deceased people

You may have to file returns for a deceased person in case you are the surviving spouse, administrator executor or legal representative of the person and the person met the filing requirements at the time of his or her death.

US citizens living abroad

Any income generated or received abroad is also to be considered and tax has to be paid by the citizen. The IRS tax laws can be extremely complicated for people

staying in Puerto Rico but the bottom line is that any income made from being an employee of the United States needs to be considered for tax purposes.

Dependents

There are several IRS tax laws for dependents and the basic fact is that filing the return of the dependent is the responsibility of the parents.

Married couples

There are various situations in case of married couples and the filing of tax depends on whether the couple file separately or jointly, are staying together or are divorced or if only one of the spouse is alive.

The list mentioned above is not exhaustive and the truth is that anyone who is making money needs to file return to ensure that they are not on the wrong side of the law. It is best to consult either the IRS directly or a reputed organization that deals with tax matters to avoid any problems in the long run. The IRS tax laws can be complicated but need to be followed and a simpler explanation goes a long way in allowing people to file returns and pay taxes at the correct time and hence avoid any kind of penalties and legal proceedings.

Source: www.financeninvestments.com

Category: Taxes

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