| The general assumption is that everyone must file a | | | | both spouses are equal to or over the age of 65, then |
| tax return each year. This is not entirely true. In some | | | | no tax return is needed unless you earned over |
| situations, an individual or married couple need not file. | | | | $18,900. |
| As you probably know, the tax code is a tiered | | | | For those that are married, but filing separately, a tax |
| system. By this, I mean that it taxes people at different | | | | return is required if you earned over $3,300. If you are |
| rates based on their earnings. The more your earnings, | | | | claiming head of household filing status, the magic |
| the higher your tax rate in general. Ah, but what about | | | | number is $16,500 if you are under 65. If you are 65 or |
| those that do not earn much during a particular year? | | | | older, the number bumps up to $14,600. |
| Well, you might not have to file at all. | | | | Assuming you fit any of these definitions, should you |
| The IRS sets a minimum income level that must be | | | | take advantage of your right not to file a tax return? |
| met before a person or persons have to file. As you | | | | Probably not. Why? Well, there are a couple of |
| might guess, the minimums are pretty low. Following | | | | reasons. First, the IRS may wonder why you didn't file. |
| are the earning limits for 2006. | | | | This could lead to an audit, particularly if you make |
| Let's assume you are filing with a singe status. If you | | | | decent money in the years before and after the year |
| are under the age of 65, you do not need to file a tax | | | | you don't file. |
| return if your earnings were less than $8,450 in 2006. | | | | Another reason you should file is you may be able to |
| 65 or older? Then you must file a tax return only if | | | | get a large refund. The tax code has sections that |
| your earnings were equal to or over $9,700. | | | | help people who have had a bad year. You may be |
| Many married couples file returns jointly. There IRS has | | | | able to claim the earned income credit, child tax credit, |
| set minimums for you as well. If both individuals are | | | | health coverage tax credit as well as other credits |
| under 65, the minimum is $16,900. If one of the spouses | | | | available to you. |
| is over 65, then the number bumps up to $17,900. If | | | | |