Do I have to file a tax return?

Do I have to file a tax return?

Whether or not you file a tax return depends on these 3 factors:

1) Gross Income.

What is included in gross income?

Goods, property and services that is not exempt from tax.
Income made outside the U.S.
Self-employed income includes:
- Any trade or business as a sole proprietor
- Independent contractor
- Member of a partnership
- Any form of business for yourself

Gross Income test

Generally, you must file if your gross income is greater than $22,400. However, depending on your filing status and age you might have a lower gross income limit.

2) Filling status.

Filing status is determined on the last day of your tax year (December 31st).

There are 5 filing statuses namely:

1) Single: for tax purposes, a single person is someone who is unmarried as of the last day of the year. You are considered unmarried if as of December 31^st if you are legally separated or divorced from your spouse according to state law.

2)Head of Household: To file as head of household you must meet all of the following requirements:

- You paid more than half the costs of keeping up a home
- A qualifying person lived with you for at least 6 months
- You are unmarried or considered unmarried as of December 31^st. To be considered unmarried, you must meet the following tests:
  - You do not file a return with your spouse
  - You paid more than half the costs of keeping a home
  - Your spouse did not live in your home for at least 6 months (temporary absences do not count)
  - Your home was the main home of your child
  - Your must pass the exemption test for the child

Married Individuals: married individuals living in the same home have only 2 choices to file their tax return:

3)Married Filing Jointly: if you and spouse choose to file a tax return together then you file a married filing jointly return

4) Married Filing Separately: If you and your spouse choose to file a separate return then you file a married filing separate return. This is the least advantageous filing status. You lose most tax credits and deductions in a married separate return.

5) Qualifying widow(er) with dependent: If your spouse died in the most recent tax year, you may qualify to use qualifying widower with dependent child as your tax status for 2 years following the tax return.

3) Age.

If you are 65 or older at the end of the year, you are allowed a higher amount of income than other taxpayers before you have to file. If you were born on January 1 1949, you are considered 65 at the end of 2013.

Do I file a tax return chart?

Filing Status	Age (2013 Tax year)	Gross Income Limit
Single	Under 65	$10,000
Single	Over 65	$11,500
Married Filing Jointly	Under 65 (both spouses)	$20,000
Married Filing Jointly	Over 65 (one spouse)	$21,200
Married Filing Jointly	Over 65 (both spouses)	$22,400
Married Filing Separately	Any age	$3,900
Head of Household	Under 65	$12,850
Head of	Over 65	$14,350
Qualifying widow(er) with dependent child	Under 65	$16,100
Qualifying widow(er) with dependent child	Over 65	$17,300

Dependents

If someone else can claim you as a dependent, then different filing requirements apply to you. As a dependent you must file if:

Your income was more than $1,000 from investments, or
Your income was more than $6,100 from wages

Which form should I use?

Form 1040EZ– is the simplest to use. You can use this form if you are:

Under the age of 65,
Do not claim any dependents, adjustments, and credits.
Make less than $100,000
Have not filed bankruptcy after 2005

Form 1040A: You can use this form if you:

Have income from sources other than wages
Have certain adjustments to income
Make less than $100,000.

Form 1040: You can use this form:

If you cannot use 1040EZ or 1040A you must use 1040.
You can report all types of income, deductions and credits.

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