I am 37 years old and have only filed taxes twice, once when I was 16 and once when I was 22. I usually claim 3 on my w-4 forms and I am single with no kids. I know the government knows exactly where I have worked and what I have made, so why do people say I have to file?
2007-09-21 21:29:16 · 7 answers · asked by Richi 1 in Business & Finance ➔ Taxes ➔ United States
Because generally your withholdings from your paycheck are going to end up with either you having overpaid on your federal and state income taxes, or you underpaid. If you overpaid you need to file a tax return to get that overpayment back (there is a 3 year filing limit though for refunds, so you could only file returns for 2004, 2005, 2006 and still get refunds if you were entitled to them). By claiming 3 though on your W-4 I would think with being single with no kids that you would actually end up owing on federal and/or state taxes and am amazed that the IRS and the state have let you slide by without having filed. Guess you are one of those lucky people who have fallen between the cracks with the IRS. Just to let you know though, while there is the 3 year limit for filing to get refunds, there is no time limit for filing if you end up owing the IRS and the state. They can come after you for all those years you didn't file for and actually owe them money. I just hope for your sake you continue to fall through the crack that you have fallen through.
2007-09-22 01:24:21 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Actually, filing a tax return is better for you if the IRS ever decides to perform an audit. When you file a tax return, the IRS only has a limited time to assess any additional taxes as long as fraud is not involved. However, if you don't file a tax return, there is no statute of limitations. By filing a return, you are claiming any refund that would be due.
The statute of limitations is usually 3 years.
If you are not able to itemize assuming that you filed your taxes, by claiming 3 exemptions on your W-4, you should owe at the end of each year.
2007-09-21 22:56:59 · answer #2 · answered by Steve 6 · 0⤊ 0⤋
Because the law says you have to? If you make over $8750 per year if you're single, or $17,500 if you are married filing a joint return, you're required to file a tax return. Those are the numbers for 2007 - the limits are a little less for earlier years.
If your earnings are on a W-2, then if you didn't file but were required to, it's likely that you were due a refund. If it looks like you might owe money, the IRS would contact you - if you have a refund coming but don't claim it, then they probably won't. You can file back as far as your return for tax year 2004 and get any refund that's due to you - farther back, you've already forfeited them.
2007-09-22 09:03:30 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
If you are single and no kids and you are claiming 3 exemptions on your w-4, I guarantee you owe the government money and when they catch up with you, the penalties and interest with kill you for years and they will garnish your wages so heavily, you won't be able to pay any of your bills
2007-09-22 01:29:49 · answer #4 · answered by Anonymous · 0⤊ 0⤋
You don't have to file a tax return if you break even or if you qualify for a refund.
If you owe the government money, however... you will some day get some bad news from a suit with a briefcase.
2007-09-21 21:34:21 · answer #5 · answered by Anonymous · 0⤊ 3⤋
If you make over $8,750, you are required to file a tax return.
2007-09-21 21:46:55 · answer #6 · answered by ninasgramma 7 · 1⤊ 0⤋
It sounds so ridiculous. What goes around, comes around.
They will find you.
2007-09-21 21:36:15 · answer #7 · answered by angels21405 2 · 0⤊ 0⤋