Who has to file income tax?

JR · Joined: 24 Feb 2008 Posts: 1

I was working on taxes for a family member and they owed nothing when
I was done figuring out their taxes on turbo tax. Both members of the
family are disabled and collecting Social Security benefits. Turbo
Tax found nothing they "made" was taxable. It started me wondering
about individuals I hear that do not have to file a 1040. Can someone
explain in what circumstances an individual or family would not need
to file a 1040?

Thanks.

JR

Archived from group: misc>taxes

Phil Marti · Joined: 25 Aug 2007 Posts: 2520

"JR" wrote:

>I was working on taxes for a family member and they owed nothing when
> I was done figuring out their taxes on turbo tax. Both members of the
> family are disabled and collecting Social Security benefits. Turbo
> Tax found nothing they "made" was taxable. It started me wondering
> about individuals I hear that do not have to file a 1040. Can someone
> explain in what circumstances an individual or family would not need
> to file a 1040?

The IRS can, and does in the "Who Must File?" section of the 1040
instructions.

Your relatives with Social Security income but no filing requirement should
file 2007 returns, though. Assuming they get at least $3,000 of SS benefits
annually, they'll get a $300 "stimulus" check this summer.

--
Phil Marti
Clarksburg, MD

Paul Thomas · Joined: 25 Aug 2007 Posts: 775

"JR" wrote
>I was working on taxes for a family member and they owed nothing when
> I was done figuring out their taxes on turbo tax. Both members of the
> family are disabled and collecting Social Security benefits. Turbo
> Tax found nothing they "made" was taxable. It started me wondering
> about individuals I hear that do not have to file a 1040. Can someone
> explain in what circumstances an individual or family would not need
> to file a 1040?

Possibly, just as you've described. Although there are many who end up not
owing any tax at all, they have to file to settle the issue of gain/loss on
investments sold.

In general, anyone with income below the standard deduction and personal
exemption amount don't ~~have~~ to file, but often do to get a refund.

Also, filing may be required as part of the state tax preparation, which
they may be required to do even if they would not be for federal purposes.

--
Paul A. Thomas, CPA
Athens, Georgia

File IRS form 1040-ES for unemployment income only? My only income for the last quarter was my unemployment benefit (~$480.00 per week) and a very small amount of bank interest. I am not having anything withheld from the unemployment benefit because I can barely meet my monthly obligations with the full b

Do I have to file 540 CA I filled out 2006 540 CA and I ended up taking my standard deduction, $3410, on line 44. Do I still need to file this form?

Does my daughter need to file I file a 1040 and Form-1 for I claim my 11 year old son and 16 year old daughter. My daughter had a part time job in 2007. She received a W2 reporting that she earned $301 in 2007. Does she have to file a tax return? If she does how does th

Why file returns..... Unclaimed refunds totaling more than $2.2 billion are awaiting about 1.8 million people who failed to file a federal income tax return for 2003, the Internal Revenue Service announced today. However, in order to collect the money, a return for 2003 must b

Do I have to file Partnership K-1 ? I established a single-member LLC in 2006. In August 2007 I signed (as the duly authorized agent of the LLC) an agreement with a foreign (i.e. non-US) startup: In exchange for my professional services, I will receive 10% of the stocks of that company. Thi