Do I Need To File an Tax Return?
Not everyone needs to
If you have modest or low income, you might not need to file a 2011 tax return.
But you might want to -- so you get a refund on any federal income tax withheld, or if you qualify for the earned income credit, which can put money in your pocket if you are a low-income worker.
Generally, these three factors determine whether you must file:
- Your filing status, that is, whether you file as a single person or as a married couple filing jointly
- Your age, whether you are under age 65, or 65 and older
- Your gross income
What is your gross income?
All the income you received that is taxable, whether in the form of wages and tips, self-employment income, taxable interest and dividends, capital gains, rents, goods, property or services.
For most people, this does not include Social Security benefits.
Guidelines for MOST people
Filing Status 2011 Must file if gross income is at least
Single
Under 65 $9,500
Married Filing Jointly
One spouse 65 or older $20,150
Married filing separately $3,700
Head of Household
65 or older $13,650
_________________________________________________________________
Qualifying Widow(er)
Under 65 $15,300
65 or older $16,450
Exceptions for self-employed and dependents
There are exceptions to these guidelines. For example, if you are self-employed and your net earnings (income minus expenses) are more than $400, you need to file and pay self-employment tax. (You won’t receive credit toward Social Security benefits if you don’t report and pay this tax.)
Even if you aren't required to file, you might want to
Many people who are not required to file a return choose to do so for several reasons. Among them:
- To recover money withheld from their wages by employers.
- To receive the Earned Income Credit, or EIC, money paid by the government to qualifying low- and middle-income workers.
- To receive other "refundable" credits. Like the EIC, these credits can be are paid to filers even if they owe no taxes. They include the Additional Child Tax Credit and the American Opportunity college credit, which replaced and increased the old Hope Credit in 2010.
