tax return is greater than the tax benefit you
lose on your federal tax return by not taking the standard deduction. At no
time are you obligated to take the standard deduction. It is for the most
part more beneficial to take advantage of the larger figure but not always
as in the case with the state calculations.
Even if you do not otherwise have to file a tax
return, you should file to get a refund of any tax withheld, to
get the Earned Income Credit if you are eligible or if you are eligible for
a refundable credit for prior year minimum tax.
In some cases, your combined income tax on
separate tax returns may be less that it would be on a joint tax
return. However, you should itemize deductions if your spouse
itemizes deductions, and you are not allowed to claim the standard
deduction. Also remember that you cannot exclude any interest income from
qualified U.S. savings bonds that you used for higher education expenses
when you file MFS.Also,
when you file Married Filing Separately, more of your Social Security
benefits you received during the year become taxable than if you filed a
Married Filing Jointly tax return.
Whether you must file a federal income tax return
depends on many factors such as your gross income, your filing
status used, your age and whether you are a dependent. If you are required to file a tax return but you
fail or willfully fail to do so you may have to pay a penalty.
Not filing your return is serious business and you could be subject to
criminal prosecution for choosing to not file.
Gross income is all income your receive in the
form of money, goods, property or services which is not exempt
from tax. If you are married and lived with your spouse in a
community property state, half of any income received by your
spouse may be considered yours. You must file a tax return if you owe any
self-employment tax. Usually you would owe self employment tax if your
self-employment income is at least $400.
Your filing status generally depends on whether
you are single or married at the end of the year. You could be married in
March and could have become single by the end of the year. What matters is
what is true on December 31st. Therefore, if you could benefit on your taxes
by getting married on the last day of the year, then get married. The IRS
has no problem with that as long as you stay married and are not going to
divorce the following month and try the same scheme every December 31st. Age is a factor in determining if you must file a
return only if you are 65 or older at the end of the year.
You must file an income tax return for a decedent
if you are the surviving spouse, executor, administrator, or
legal representative. You must also file an income tax return for a decedent
if the decedent was required to file at the time of death.
If you are single dependent, you must file a
return if your earned income was more than $1,000, your earned
income of more than $6,100. Additionally, you must file if your gross income
was more than the larger of $1,000 or your earned income up to $5,750 plus
$350. If you are single dependent who is blind or age
65 or older, you must file a return if your unearned income was
more than $2,500, your earned income was more than $7,600 or your gross
income was the larger of $2,500 or your earned income plus $1,850. If you are a married dependent, and you were
either age over 65 or blind, you must file a
