I am trying to figure out what to do? Help Please!?

Question

Since 1992 through 1998 I was in college. I did not work and took out financial loans to pay for college costs. I did not file tax return for those years, should I have?

Since 1998 to 2004 I worked low paying jobs and everytime I would walk into a Tax Preparation office to file a tax return, the tax preparer would state 'You can file BUT you didn't make enough money to file'. What does this mean and what is the income per year that doesn't require you to file a tax return?

In 2005 I worked two salary positions and got scared to death since it has been sooo long since I have filed a tax return, and I did not file. What should I do now?

Since 2005 to 2007, my wife operated a child home daycare and I had no income. If I didn't have a job, do I still have to file a tax return?

Very recently I received an offer from a company and would like to begin working. Is there anything I have to take care of before I receive my W-2 from this employer in January 2008 so I can file for this job? Thanks for anyone who helps me with these questions!

My wife and I got married July 2006 (last summer). So, you are
saying that we should be filing jointly now? My wife did file tax returns
for the 3 years she operated a home daycare center, but she filed
single.
Someone once told me that if you claim the correct amount of
withholdings (0 or 1) on the W-4s for your job, and that if you were due a slight refund or broke even
and didn't file a tax return, the IRS would not come after you. Is this
true or useless verbiage? I was under the impression that it was only mandatory to file a tax return when you owed taxes and had to pay taxes for that year or wanted the refund? Can someone correct me on this?


Thanks for your much needed advice!

Answer 1

From your information, the only year where you might have had to file was 2005. File that return.

For 2004 you may be due a refund. You will have to file a return to get that refund.

If you had no income, even if you were married, you were not required to file a return. Your spouse could have filed without you.

There is nothing that needs to be done regarding your taking the job now.

Answer 2

Q. 'You can file BUT you didn't make enough money to file'. What does this mean and what is the income per year that doesn't require you to file a tax return?
A. Typically, the sum of the standard deduction for your marital status and, if applicable, the exemptions for yourself and your spouse. Look in the front of the instructions for the 1040. It says somewhere (and it is free, unlike a tax preparer).

Q. In 2005 I worked two salary positions and got scared to death since it has been sooo long since I have filed a tax return, and I did not file. What should I do now?
A. File a 2005 return now. For future reference, they often get returns from persons who have not filed in many years and filing after not having done so does not cause problems, especially if the income during the intervening years was too low to be required to file.

Q. Since 2005 to 2007, my wife operated a child home daycare and I had no income. If I didn't have a job, do I still have to file a tax return?
A. No, but your wife does and her taxes will be less if you file a joint return with her than if she files alone.

Q. Is there anything I have to take care of before I receive my W-2 from this employer in January 2008 so I can file for this job?
A. When you start work, they are supposed to ask you for a W-4, which is a really short form that is used to determine how much they should withhold for taxes.

Answer 3

When did you get married? At that point you and your wife should be filing joint returns. I would forget about 2004 and prior, since you probably earned below the standard deduction plus one exemption, which has been at around $8K(single taxpayer) for awhile.

Gather what tax forms for 2005 that you have and if you are married you'll want your wife's information too. If you are missing W-2's, the IRS can give them to you. They should have records of what was earned. You may even be due a refund.

For 2005 and 2006 you and your wife need to report your business activity. You'll need help to do this so that you minimize business profit and pay the least amount in tax. You probably will owe some for these years, since presumably you lived off the profit she was making.

You don't need to do anything before receiving a W-2 in January 2008, but your employer will ask you to fill out a W-4 which determines the amount of withholding. It's difficult to predict the exact amount of withholding you should have since I have zero data, but since your wife has a business and you are likely not paying estimates, you should claim Married with zero dependents and they will withhold enough to cover your liability and some of hers.

I would ask for help to file both 2005 and 2006 and worry about 2007 next spring.

Good luck and don't be scared to file. Chances are you are due a refund in 2005, because the IRS would have found you by now if they thought you owed.

Answer 4

Loans aren’t taxable income, so if you didn’t work while you were in school and didn't have substantial investment income, you didn’t need to file.

For 1998-2004 he was probably saying you weren’t REQUIRED to file. If anything was withheld for federal income tax, you could have filed and gotten it refunded – it’s too late now anyway, except for 2004.

For 2005, if you had salaried positions and made over the limit to file, you were required to file. The IRS will have gotten copies of your W-2’s. If they don’t contact you to ask why you didn’t file, then that probably means you were due a refund. You can still file for that year and get the refund if you have one coming. Not filing earlier years isn’t a problem.

2006 – if you didn’t have any income, you weren’t required to file, but if your wife operated a home daycare, SHE was required to file for that income, and would almost surely pay less tax if the two of you filed a joint return for that year. It’s already late, so there will be penalties and interest, but it will continue to get worse until she files and pays.

Go ahead and take the new job, and be sure to file for 2007, due in early 2008.

Answer 5

Since you had no income through 1998 no need to file. From 1998 to 2004 the income to file was over 8,000 but if you had any income taxes withheld you could have gotten refunds. It is too late for all years except 2004. Find Federal forms at irs.gov and do it by 4/15/08. For 2005 and later if your wife had net business income you both should have file joint returns together - since you had no income this would save her taxes. Some self-employed people do not file so that is your choice. For 2007 you better start filing jointly - you might get refunds.

Answer 6

From 1998 to 2004, you could still file your taxes to retrieve all of your tax withholdings from those low-paying jobs both federal and state. Those tax preparers during those years did not do their jobs properly. Besides it is too late now, to old, to many years. File your 2005 now. No you do not have to have a job to file a tax return. Why not call your local tax pro tomorrow and discuss your tax situation?