serious question......if you know let me know......do you get in trouble if you never had filed for taxes???....ever!.......i heard that you have to reach 5,000 dollars a year to file for taxes...is it true?...thanks.....
2006-12-12 05:53:40 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Other - Taxes
The amount changes every year. If you were not a dependent, if you earned less that $8450 in 2006, you don't have to file, although if you had money withheld, you should file to get your money back, and if you're eligible for the earned income credit, you won't get it if you don't file.
If you were married and filing a joint return, the limit is double the above.
If you had any income from self-employment or were claimed as a dependent, the limits are much less.
2006-12-12 15:59:56 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
If your income is below the sum of the standard deduction and your personal exemption(s), then there is really no need to file, since your tax liability would be zero anyway. The statute of limitations for the IRS to examine your taxes is 3 years, 5 years if they suspect fraud. However, the statute of limitations does not start to run until the day you file your return. Therefore, if you have never filed the return, the statute never expires and they can come after you and examine your taxes.
Also note that if you are due a refund, you only have three years to file for your refund. Once those three years have passed, you've lost your money even though you may be entitled to a refund. Say for example that you earned $5,000 on a W-2 for 2006 and your employer withheld $500 of federal income tax. Since the $5,000 is under the standard deduction plus one exemption, if you file your return, your tax liability would be zero and you should get all of your withholding back. Since the W-2 is for 2006, the filing deadline is April 15, 2007. You have until April 15, 2010 to file your return for the refund. If the IRS receives your return after that, they get to keep your refund. However, if you never file your return, the IRS has until the end of time to audit you for the year.
The general rule is that if you received income that was also reported to the IRS, such as salary that was reported on the Form W-2, or interest/dividend/other income that was reported on a 1099, you should file a return. The reason being is that since the IRS has received notification that you have received that income, you should file a return so they can match the W-2/1099 to a filed return. Without the matching records, it raises a nice red flag for them to audit you.
2006-12-12 06:44:51 · answer #2 · answered by jseah114 6 · 0⤊ 0⤋
There's an exemption for the first roughly $7000 in income.
So, if you earned less than that, you would owe no taxes. But, you probably had taxes withheld, so you should still file for a return of the taxes you paid.
2006-12-12 05:55:38 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You should really try to get this problem fixed. You wouldn't want to be stuck with much bigger problems later down the road. You should go seek some professional help. Go see a Tax rep or something and ask them and get this squared away pronto... =) I hope this helps out a lil... =) or a lot
2006-12-12 07:29:18 · answer #4 · answered by BuNNY 2 · 0⤊ 0⤋