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Do I have to file my income taxes this year?

    by Israel Torres, Nov 9, 2007

    There is only one reason to file your taxes if you are not required to file. The reason to file is to get back any withholding from your wages and that would show up on Box 2 of your W-2.

We're into the last quarter of the year and soon after the New Year you'll be receiving your W-2 from your employer. Yes it's those dreaded taxes that we have to file every year. One thing to keep in mind is that the more forms your tax professional fills out the more he will charge you for your taxes. In order to determine if a taxpayer must file an income tax return you must know three things:

1.    Marital Status:

To determine your marital status you need to determine whether you were Married or Unmarried on the last day of the tax year. If you are married on December 31, 2007, you are considered married for the 2006 tax year. By married means that if you got divorced during the year and it became final on or before December 31, 2007. If your divorce became final on December 31, 2006 you are considered unmarried. If your spouse died during the tax year you are considered married for that tax year. Common law marriages are not recognized in some states and must meet four standards:

  1. The parties must have the legal capacity to marry
  2. They must have the current intent to marry and must communicate that to each other.
  3. The couple must live together.
  4. The Parties must present themselves as married.

2.    Age:

A person is considered to have attained any given age the day before his birthday. If you turned 31 years old May 15, 2006, you will be considered 31 for the tax year of 2006. For tax purposes children are considered a certain age on their birthdays not the preceeding day.

3.    Gross Income:

Is total worldwide income that is subject to tax. Two things to consider about gross income:

  • Who owns the income Married couples must treat income according to the laws for the states they live in. Income and property ownership in most states are based on British Common Law which treats income and property as seperate income. In these property states income earned belongs to the person who earned it or the person who owns the property that produced the income. Nine states are community property states based on Spanish Law. In Community property states income earned is considered to belong half to the husband and half to the wife, regardless of who earned it. Ownership of property vary from state to state.
    *** NOTE: Nine states that are community property states are Arizona, California, Idaho, Louisiana, Neveda, New Mexico, Texas, Washington, Wisconsin.
  • If your filing status is stated and your income is over the income limits and you meet the age requirements than you must file a tax return. If you earned below any of the following income levels for your filing status and age, you ( Are NOT REQUIRED TO FILE ) a tax return.
For Single Taxpayer Filing Status:
  • Is your gross income more than $8750 and are you under 65 years of age?
  • Is your gross income more than $10500 and are you over 65 years of age?
For Head of Household Taxpayer Filing Status:
  • Is your gross income more than $11250 and are you under 65 years of age?
  • Is your gross income more than $12550 and are you over 65 years of age?
For Qualifying Widow(er) Taxpayer Filing Status:
  • Is your gross income more than $14100 and are you under 65 years of age?
  • Is your gross income more than $15150 and are you over 65 years of age?
For Married Filing Joint Taxpayer Filing Status:
  • Is your gross income more than $17500 and both are under 65 years of age?
  • Is your gross income more than $18550 and are you under 65 years of age?
  • Is your gross income more than $19600 and are you over 65 years of age?
For Married Filing Seperate Taxpayer Filing Status:
  • Is your gross income more than $3400 and no age limits?