Who must file a tax return?
Whether you have to file a tax return depends on your filing status, age, and gross income. There are five different filing statuses: Single, Head of Household, Married Filing Separate, Married Filing Jointly, and Qualifying Widow(er) with Dependent Child. Gross income includes all income from worldwide sources you receive that is not tax exempt. Even though your gross income may be less than the required tax return filing limits, there are several other factors that could require you to file a tax return.
You may need to file an Indiana individual income tax return if: • You lived in Indiana and received income greater than your exemptions, or • You lived outside Indiana and received income from Indiana. First, figure your Indiana exemptions: • Allow $1,000 for each exemption claimed on your federal tax return; • Take an additional $1,500 for certain dependent children (see IT-40 instruction booklet for details); • $1,000 for each individual age 65 or older; • $1,000 for each individual legally blind; and • An additional $500 for each individual age 65 or older who has a federal adjusted gross income of less than $40,000. If you did not have to file a federal income tax return, you should complete a “sample” federal income tax return to see how many exemptions you are eligible to claim. Second, add up all the exemptions you are eligible for, and compare that amount to your taxable income. Example: Let’s say you are eligible for a total of $2,000 in exemptions. If your taxable income is
The IRS requires most of us to file a federal income tax return every year. In general, the federal tax agency bases its filing requirements for a given tax year on how much income you earn for a given tax filing status. The five tax filing statuses are single, married filing jointly, married filing separately, head of household, and widow or widower with qualifying child. For persons age 65 or older or blind, the filing requirements are a little more lenient since you can earn additional income and not have to file. The IRS uses the following income thresholds to determine whether you must file a federal income tax return for 2008. The IRS adjusts these amounts for inflation so that taxpayers aren’t automatically bumped into a higher tax bracket as incomes grow to keep pace with inflation: Single taxpayers. If you expect to file a single return, the IRS requires you to file a return for 2008 if your gross income for the year is at least: $8,950 if you are under age 65. $10,300 if you
Related Questions
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