I only made few hunderd dollars from my saving account, with $0 income, do I still need to file taxes for 2006 eventhough I was selfemplyed and did not make a peny?
Thanks
2007-01-08 07:21:57 · 7 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
My understanding is that you need to file to document your deductions and losses which make you non-liable for taxes.
I'd do it because if you don't, they'll send you a letter and possibly audit.
2007-01-08 07:24:38 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Under IRC Sec. 6012, you only need to file as a single individual if your income exceeds $8,200. Assuming your "few hundred dollars" is less than that amount, you do not NEED to file. However, as other have stated, failing to file raises red flags with the IRS, increasing your likelihood of being audited in the future.
As you will most likely owe no tax on your interest income, I would suggest filing a 1040EZ to protect yourself.
2007-01-08 08:47:07 · answer #2 · answered by Abe 1 · 0⤊ 0⤋
While you won't be subject to tax (your income is too low), you should file anyways since you did receive the "few hundred dollars" from your savings account, which the bank will report to both you and the IRS on a form 1099-INT.
2007-01-08 07:34:43 · answer #3 · answered by jseah114 6 · 0⤊ 0⤋
Yes, you should. It will avoid a big flag on your file saying "We never got taxes from this guy" which could have them come looking to audit you. And they will have a record of the savings account interest to trigger them looking for a return.
With just a little income, the 1040EZ should be pretty simple.
2007-01-08 07:26:03 · answer #4 · answered by Aggie80 5 · 0⤊ 0⤋
If you were self-employed and had income, but zero or negative net due to expenses being as much as or more than income, you shouldn't owe any tax but should still file to have it all on record.
A few hundred dollars interest that you had as income won't change this answer.
2007-01-08 09:12:04 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
My understanding that it is not absolutely necessary, but not filing can cause you problems with state issued professional licenses and the like. You filing should take about 15 minutes (1040EZ) at your local library where you can pick up the forms, so why not do it?
2007-01-08 07:31:03 · answer #6 · answered by David 3 · 0⤊ 0⤋
I think they target self-employed people. You should call the IRS helpline, get the person's name, and do what they advise.
2007-01-08 07:29:55 · answer #7 · answered by mbasey46 2 · 0⤊ 0⤋