Who has to file a federal income tax return?

There are several different reasons why an individual files a federal income tax return. These reasons include both times when it is required and times when the taxpayer will want to file even when it is not a requirement.

The above table applies to individuals who another taxpayer cannot claim as a dependent on their tax return.

Self-employed individuals who earn more than $400 are required to file a federal income tax return.

Reasons why you must file an income tax return

In addition, there are certain specific events that mean an individual must file a federal income tax return. These events include but may not be limited to the following:

  • sale of a home
  • receipt of an early distribution from certain qualified retirement accounts
  • making excessive contributions to an IRA
  • failing to receive a distribution from a qualified retirement account that is mandatory because of the individual's age
  • receiving an excessively large distribution from a qualified retirement account
  • receiving tips not reported to the individual's employer

Finally, even if an individual is not required to file a tax return, there are several reasons when

the individual may want to file a tax return:

  • If federal income taxes were withheld from wages earned by an individual or an individual made estimated tax payments during the year, the individual must file a federal income tax return in order to get that money back.
  • For individuals who qualify for the Making Work Pay Tax Credit by having earned income from work, the individual must file a federal income tax return in order to receive any refund related to this credit.
  • For individuals who qualify for the Earned Income Tax Credit by working and having earned income below the defined threshold, the individual must file a federal income tax return in order to receive any refund related to this credit.
  • For individuals who qualify for the Child Tax Credit when they have one or more qualifying children, the individual must file a federal income tax return in order to receive any refund related to this credit.
  • For individuals who are students who qualify for the American Opportunity Tax Credit, the individual must file a federal income tax return in order to receive any refund related to this credit.

Source: www.myattorneyhome.com

Category: Taxes

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