Court decided that the income
tax was unconstitutional because it was not apportioned among the states in
conformity with the Constitution.
More recently in 2004, the U.S.
was forced to eliminate a corporate tax provision that had been ruled
illegal by the World Trade Organization.
Two tax bills signed in 2005 and 2006 extended
through 2010 the favorable rates on capital gains and dividends
that had been enacted in 2003, raised the exemption levels for
the Alternative Minimum Tax, and enacted new tax incentives
designed to persuade individuals to save more for retirement.
You must use Form 1040A or Form 1040 if you
received interest as a nominee. You must also use Form 1040A or Form 1040 if
you received a 2014 Form 1099-INT of U.S. savings bond interest that
includes amounts your reported before 2014. If you owned or had authority
over one or more foreign financial accounts with a combined value over
$10,000 at any time during 2014, then you must use either Form 1040A or Form
1040 to report it.
Practically anything that you receive in exchange
for services is taxable income. You don't need to receive any kind of
paperwork from anyone in order to report income that is taxable. For
example, wages received as a household employee for which
you did not receive a Form W-2 because your employer paid you
less than $1,900 in 2014 needs to be included in line 1
as taxable income.
Some types of income, such as
household employee wages may not require the employer to issue you any kind
of documentation if that amount does not go over a certain amount. This
amount would be over $1,900 in 2014. This means that if your household
employee earned more than $1,900 you would have to fill out the forms to
report the amount to government and pay the employment taxes. However, this
does not mean that your employee is exempt from reporting this income. The
same thing goes with banks. Bank are only required to report your interest
income if it goes over $10. This does not mean that you, the account holder,
are not required to report the income, even if it is $2.
If you received a state refund of your taxes in
2014, and for the year the tax was paid to the state, you did
not file Form 1040EZ or Form 1040A, then none of your state
refund would be taxable.
This is a fast way to know if
your state refund would be taxable by the forms that you file such as when
you file 1040EZ or Form 1040A. What happens if you file your Form 1040EZs
and your Form 1040As on Form 1040 like so many professional tax services do?
Then you need to fill out the worksheet to figure out the taxable amount.
Therefore, do not assume that just because they filed Form 1040 last year,
that their state refund was miscalculated.
If you are a child or other dependent, you must
file a tax return for 2014 if your gross income was more than
the larger of $1,000 or your earned income up to $5,850 plus $350.
If you are a dependent, you must file a tax
return for 2014 if you income is over the standard deduction amount for a
single taxpayer. The filing status amount for 2014 for a single taxpayer is
$6,200. Therefore, if a dependent earned at least $6,200 for tax year 2014,
he or she must file a tax return.
