Why Must You File Your Income Tax Return?

Why must you file your income tax return? You should file your income tax return even you do not owe any taxes because you may get a refund. There are certain credits you can qualify for just because you were working last year. These credits may result in a refund coming back to you. Therefore, even if you do not have to file a return, you should file one to get a refund of any Federal income tax withheld.

• Making work pay credit
• Government retiree credit
• Earned income credit
• Additional child tax-credit
• Refundable American opportunity credit
• Health coverage tax credit (must file Form 1040)
• Refundable credit for prior year minimum tax (must file Form 1040)
• First-time homebuyer credit (must file Form 1040)

•  You are single, under 65, and earned $9,350.
•  You are single, 65 or older, and earned $10,750.
•  You are married filling jointly; both spouses are under 65, and earned $18,700.
•  You are married filling jointly, one spouse is 65 or older, and earned $19,800.
• You are married filling jointly, both spouses is 65 or older, and earned $20,900.
• You are married filling separately and earned $3,650.
• You are head of household, under 65, and earned $12,000.
•  You are head of household, 65 or older, and earned $13,400.
•  Qualifying widow(er) with dependent child, under 65, and earned $15,050.
•  Qualifying widow(er) with dependent child, 65 or older, and earned $16,150.

1. Your unearned income was over $2,350 ($3,750 if 65 or older and blind).
2. Your earned income was over $7,100 ($8,500 if 65 or older and blind).
3. Your gross income was more than the larger of

• $2,350 ($3,750 if 65 or older and blind), or
• Your earned income (up to $5,400) plus $1,700 ($3,100 if 65 or older and blind)

1. Your unearned income was over $2,050 ($3,150 if 65 or older and blind).
2. Your earned income was over $6,800 ($7,900 if 65 or older and blind) or your gross income was at least $5 and your spouse files a separate return and itemizes deductions.
3. Your gross income was more than the larger of

• $2,050 ($3,150 if 65 or older and blind), or
• Your earned income (up to $5,400) plus $1,400 ($2,500 if 65 or older and blind)

The EIC is a credit for certain people who work. The credit may give you a refund even if you do not owe any tax. These payments are shown in your Form W-2, box 9. You must

• Complete the worksheet or let the IRS figure the credit for you.
• If you have a qualifying child, complete and attach Schedule EIC.
• Special rules may apply for people who had to relocate because of the storms, tornadoes, or flooding in a Midwestern disaster area (see Pub. 4492-B)

You owe tax from the recapture of an education credit or the alternative minimum tax.

You must file a return using Form 1040 if any of the following apply

You owe any special taxes on: social security and Medicare, tips you did not report to your employer, or wages you receive from an employer who did not withhold theses taxes.

You owe write-in taxes: uncollected social security and Medicare or RRTA, tips you reported to your employer, your group-term life insurance, or additional tax on a health savings account.

You had net earnings from self-employment of at least $400.

You have wages of $108.28 or more from a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes.

You owe additional tax on a qualified plan, including the IRA, or other tax-favored account. If you are only filling a return for this tax, you can file Form 5329 by itself.

You owe household employment taxes. If you are only filling a return for this tax, you can file Schedule H (Form 1040) by itself.

* Gross income: all income you received in the form of money, goods, property, and services that is not exempt from tax, including income from out of the United States.

* Income tax return or return: income tax Form 1040, 1040A, 1040EZ, and state and local income tax forms.

* Net income: income after expenses.

Disclaimer: This tax information is found in the IRS publication, provided as a public service, and cannot guarantee the accuracy of the information provided.