Find out if you are required to file a 2011 federal tax return
All those with incomes above a certain level have to file an income tax return, either a Form 1040, 1040A, or 1040EZ.
If your income is below the threshold listed in the right-hand column, you are not legally obligated to file a return.
But in certain situations it may be financially beneficial for you to file even if you don’t have to because you could get a refund.
The first situation in which you probably want to file no matter how little money you made is if federal income tax was withheld from your paychecks. Filing will most likely get you some of this money back.
The American Opportunity Credit could give eligible students a tax credit up to $2,500.
For some low-income taxpayers, these credits could actually result in a refund of hundreds or even thousands of dollars.
Dependents may be required to file a tax return too. A dependent has to file a return
- unearned income was more than $950,
- earned income was more than $5,800, or
- gross income was more than the larger of $950, or their earned income (up to $5,500) plus $300
Slightly different eligibility rules apply for dependents who are married as well as dependents who are 65 or older or blind.
If it is at all unclear whether or not you have to file, consult the 1040 Instructions. specifically Charts A, B, and C. They should be able to determine who exactly is required to file. But remember: you should always check to see if you are due a refund first.
If it turns out you do need to file, head over to the PriorTax homepage and get started on your return today.
This entry was posted on Wednesday, March 7th, 2012 at 9:33 pm and is filed under Tax Tips. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response. or trackback from your own site.