My income is half from Social Security and half from the Department of Labor. Department of Labor is TAX FREE, and that make my Social Security under $15,000 a year, when I went to the Tax Prepairor, she told me my income was so low that I did not need to file Federal Tax. Was I told right and if not, how can I correct this problem without going to jail.
2007-04-15 01:57:46 · 8 answers · asked by gil3moj@yahoo.com 2 in Business & Finance ➔ Taxes ➔ United States
To be sure if you are going to file income taxes, go to the IRS website as they have a section that asks several questions to determine if you really need to file. Look at those questions and see if they pertain to your specific case
Do You Need to File a Federal Income Tax Return? http://www.irs.gov/individuals/article/0,,id=96623,00.html
It is always best to go straight to the source especially in tax matters
2007-04-15 02:06:37 · answer #1 · answered by imisidro 7 · 1⤊ 0⤋
Probably right, if the DOL money is really tax free - I'm not sure just what kind of income that would be to be tax free though. Sounds like your income is low enough that your social security would not be taxed.
You wouldn't go to jail in any case, if you were supposed to file and didn't, over something like this.
2007-04-15 10:51:15 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Just curious, why is the income from the Department of Labor tax free? If it isn't, then you need to file.
I am going on the assumption that you had no taxes taken out of any of your income.
Anyway, even though you claim to have no taxable income, you CAN decide to file to protect yourself from being audited in the future. As long as you file a return that is not fraudulent, the IRS has only 3 years to audit you after the return is filed.
2007-04-15 09:14:24 · answer #3 · answered by Steve 6 · 1⤊ 1⤋
I would get a second opinion. It sounds like you make too much to be exempt from filing taxes. I thought you were only exempt if you made less than $800 a year, or if you're a full time student. Or maybe it depends on what state you're in. And since your income is coming from Social Security and not employment, that also makes your situation different. The website below may be able to help you.
2007-04-15 09:06:20 · answer #4 · answered by West 3 · 0⤊ 1⤋
I had a simular problem. I was told that I did not have to file by a tax preparer. I usually fill out my own taxes until this year. I filled out my form--and somewhere it askes if you want the IRS to finish figureing your taxes--see form 963 (I thing) and I found this form on irs.gov and read and followed those instructions. I am going to see what happens and let the irs do the rest. This might help--might not. Good luck.
2007-04-15 09:35:47 · answer #5 · answered by old_woman_84 7 · 0⤊ 0⤋
This is probably true. I'd need more info, but if you are on SSd you don't have to count that as income. Best thing to do is get a 1040 booklet and on the first couple of pages you'll see questions, such as do i have to file? and it will list limits and conditions. Also, check www.irs.gov or call their 800 number, which is listed on the website.
2007-04-15 09:27:18 · answer #6 · answered by s s 3 · 0⤊ 0⤋
Without knowing all of the facts and numbers it's not possible to say.
If you work for the DOL, that income is NOT tax free. If you don't work for them, you'll need to tell us why they are paying you and how much they are paying you in order to make a determination.
2007-04-15 09:24:47 · answer #7 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Call the IRS. It is the very rare exception that doesn't have to file. You may have to file, even if you are entitled to a full refund. Better safe than sorry.
2007-04-15 09:01:01 · answer #8 · answered by Random Precision 4 · 0⤊ 1⤋