Federal Income Tax Help


Do I Have to Pay Federal Income Tax?

This is a question many are asking themselves each year as tax time approaches. Do I have to pay Federal Income Tax? For most working adults the answer is yes however for someone people the answer is no. According to the IRS you need to ask yourself a list of questions to determine if you are required to file and pay taxes.

If you answer yes to any of these questions you will need to file a tax return, if you answer no to them all you may or may not be required to file a federal tax return.

1) Has an employer or anyone else been taking money from your income out for taxes?
2) Are you entitled to the earned income credit (EIC)?
3) Self employed with earnings of more than $400?
4) Did you sell a house?
5) Will you owe any special tax on qualified retirement plans such as an IRA or MSA?
6) Will you owe social security and Medicare tax on tips that were not previously reported?
7) Will you be subject to Alternative Minimum Tax (AMT)?
8) Do you owe recapture tax?
9) Are you a church employee who made more than $108.28 from a tax exempt organization?

If you answered yes to at least one of these questions it is time to start working on your taxes and getting them submitted to the IRS.

If you answered no to all of the questions the next step is to answer another series of questions to determine if your required to file a tax return or not. This series of questions deals with if someone else can claim you as a dependant and income levels. To answer the questions visit: http://www.irs.gov/individuals/article/0,,id=96623,00.html

If you are considering whether or not you have to file a tax return you probably have very little income for the year. However, if your income is small and you have been paying in taxes you are very likely to get a refund so sometimes not filing just because you do not have to can mean leaving your hard earned money on the table.

You can get a pretty good idea of if you can expect a refund by using online tax calculators and other various tax tools.

Filing your taxes is quick and easy these days especially if they are not very complicated. You can use services to e-file your taxes and have a refund sitting in your bank account 7-10 days later. So no more putting it off…get your taxes filed.