I didn't make much money this year. How will I know if its worth filing taxes. I have two children to claim.

You have to file, it's the law. Federal prison I guess and foster care for your kids could be neat but I think paying your taxes is more important than a good time.

Read this from irs.gov and figure it out:

Do You Need to File a Federal Income Tax Return?

Many people will file a 2005 Federal income tax return even though the income on the return was below the filing requirement. The questions below will help you determine if you need to file a Federal Income Tax return or if you need to stop your withholding so you will not have to file an unnecessary return in the future.

The Internal Revenue Service is providing this information as a part of our customer service and outreach efforts to Reduce Taxpayer Burden and Processing Costs. Changing your withholding and/or not filing Unnecessary Returns will save both you and the government time and money.

Even if you do not have to file a return, you should file one to get a refund of any Federal Income Tax withheld.

To determine if you need to file a Federal Income Tax return for 2005 answer the following questions:

Occasionally, individuals have one-time or infrequent financial transactions that may require them to file a Federal Income Tax return. Do any of the following examples apply to you?

* Did you have Federal taxes withheld from your pension and wages for this tax year and wish to get a refund back?
* Are you entitled to the Earned Income Tax Credit or did you receive Advance Earned Income Credit for this tax year?
* Were you self-employed with earnings of more than $400.00?
* Did you sell your home?
* Will you owe any special tax on a qualified retirement plan (including an individual retirement account (IRA) or medical savings account (MSA) ? You may owe tax if you:
o Received an early distribution from a qualified plan
o Made excess contributions to your IRA or MSA
o Were born before July 1, 1933, and you did not take the minimum required distribution from your qualified retirement plan.
o Received a distribution in the excess of $160,000 from a qualified retirement plan.
* Will you owe social security and Medicare tax on tips you did not report to your employer?
* Will you owe uncollected social security and Medicare or Railroad retirement (RRTA) tax on tips you reported to your employer?
* Will you be subject to Alternative Minimum Tax (AMT) ? (The tax law gives special treatment to some kinds of income and allows special deductions and credit for some kinds of expenses.)
* Will you owe recapture tax ?
* Are you a church employee with income in wages of $108.28 or more from a church or qualified church-controlled organization that is exempt from employer social security or Medicare taxes?

Do one or more of the preceding situations apply to your filing requirements?

Even if you don't think you made enough to pay taxes, any tax withheld will all come back to you. Additionally, it's likely if the kids are in your care that you will qualify for the Earned Income Tax Credit--additional money that would be paid to you regardless of how much tax was withheld. But in order to get any of this, you'll have to file a return.

Here's a link from the IRS to determine if you're eligible for the EITC:

check the irs website or go into a tax place like jackson hewitt

You will want to file a tax return regardless, so you can get any refund that might be due to you.

If you made your income through an employer with an employer I.D., then they should send you a W2 form or whatever, that you should use. If you made it as an "independent contractor", or "on the side", and you made under $400 or something like that, you don't need to report it. If your only income this year was as direct cash payments to you (over $400), your best decision is to report it and pay taxes on it, unfortunately.
If you work by yourself, there's a lot of things you can deduct, like business expenses, some driving miles, some meals. Go through your receipts and add it all up. And definitely read up on it. You don't wanna set a red flag that starts an audit from the IRS and you can't back it up.
Oh, you can also use TurboTax (about 30 bucks). It works and can do e-file. You'll save money on your filing.

Well if you made very little money this year and that amount was under $6000 and you have to dependants to claim depending on the state that you live ( certain states give more credit than others on your state tax return) you should get back arround $4000 to $4600.

It's better to be safe than sorry. I would file it.

You should go ahead and file. Just because you didn't make alot of money doesn't really mean much if you have dependants to claim. For xample, the year before last I made around 10,000 dollars but I got about 3500 back for my tax return.

Call H&R Bloch. I believe that they will give you information over the phone for no cost.

If you are filing for just you and your kids, you will qualify for the child tax credit. That should make your return alot. One year I only thought I was going to get $800 back. But with the credit I got $3,300. If you don't know how to do them yourself, go to H&R block or Jackson Hewitt.

if your total gross income is less than your standard deduction then you are not required to file a return. with claiming two children you could qualify for EIC and the child tax credit and possibly the additional child tax credit. what you need to find out is if the amount you may get back from these credits is worth the price you may have to pay to have the taxes processed. in some cases the amount you would get back is about what you would have to pay to have the taxes prepared and efiled.

Definitely file if you have children, in most states, if you didn't make at least 35,000 this year, you can claim Earned Income Credit, and get as much as 1800 dollars per child. A big help when you have not much money.

It is illegal not to file a tax return even if it is a zero return. If you are the primary care giver of your children and nobody has the legal right to claim them you should get money back with Earned Income Credits. This credit could even give you more back than you paid in.

If you have two kids please file you will get earned income credit.

go to turbotax.com and enter all of your income information. it doesnt cost anything unless you acutally file. They will tell you if you have anything coming back.

Enter Your Message or Comment

User Name:
User Email:
Post a comment:

Archive: Forum -Forum -Finance - Links - 1 - 2 - RSS - All RSS Feeds
The Causes and the Results. 0.054
Copyright (c) 2011 Financial Crisis Tuesday, May 29, 2012 - Terms of use - Privacy Policy