Who Does Not Need to File Tax Return ?

filing tax return

filing tax returnThe very basic question haunts almost every first time earners of income – do I need to file tax return ? Yea, it is true that under the US tax law , filing of tax return is as important as paying taxes . But , the Internal Revenue Code does not make necessary to file tax return for every types of taxpayer . While one of the basic criteria for filing tax return is earning of income , it is not so for all kinds of tax payers . Whether there is legal requirements for filing tax return, depends on the whether you are –

  1. An individual
  2. A dependent person on some one
  3. You are  below 19 years college going or full time students
  4. Self employed persons
  5. Person who is an alien or non-citizen of USA . 

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How to Know Your Filing Status ?

filing statusFiling of tax return under US tax law requires that you first ascertain your filing status. Under the Internal Revenue Code , there are five types of status under which you can file tax return. Filing status will actually determine what  tax rate or the the basic tax exemption or standard deductions and a whole lots of other relief and conditions  applies to you. So , this post is devoted on the ways you can find out exact filing status that applies to you .

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5 IRS Tax Tips for Persons Earning Tips Income!

tax tipsInternal Revenue Code tax tips same way it treats any other income under the principle that all receipts are income unless clearly provided that an income is not taxable. Tips receipts by employee are taxable income under IRC . US tax law  requires that employers in certain sectors like food and restaurant , bars, casino where it is custom to tip the employee to submit an annual report about the tips . From the information out of such report , IRS can compare the tips reported in the W2 to find out unreported tips . Therefore , it is legally important to tell the employer about the tips received by the employee. Please note that not only the tip receipt is taxable income , it is also subject to Social Security and Medicare tax withholding. So, every time one under reports , he/she also prevents unlawfully withholding tax on such income .

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4 Extended Tax Breaks You Can Claim for Tax Year 2015

extended tax breaksThe tax breaks list always changes . So the tax year 2015 is no different . Here are four  tax breaks that are officially expired on December 31, 2014, , but the Congress extended for tax year 2015 . If you are eligible to claim the following four tax breaks and you thought that the tax year has passed , don’t do the mistake. Claim these tax breaks while filing the IRS tax return for tax year 2015

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Tax Effect of Nonresident Alien Spouse Chosen As Tax Resident of US Simplified !

nonresident alienInternal Revenue Code allows a US citizen or a resident alien to treat his/her spouse as tax resident of US . This is an option granted to him/her. There maybe various situation in which during a tax year, one spouse is nonresident alien and one is resident alien . Choosing your partner (spouse ) who is nonresident as tax resident of USA may effect your taxation and also certain other legal obligation arise. 

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Who Can File IRS Tax Return as Head of Household ?

Head of HouseholdIRS tax return under US tax laws can be filed in four ways-as Single person, as married couple filing jointly or as  widow(er) , or married  filing separately and  as as Head of Household . The tax brackets for each of these types of filing of tax return are different. The deductions and exemptions are also fixed differently for these types of filing of IRS tax return. The Head of Household status is for a single or unmarried person who actually share certain kinds of person living with him. IRS calls those persons as qualifying persons . In the instant post , certain points related to filing of tax return as Head of Household is explained .

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How to Find if You Are Tax Resident of USA ?

residential statusIn order to determine the  tax laibility of a persons who visits USA or stays in USA or works in USA or earns any income connected to USA , the first and foremost creteria is to find out the residential status of the person as per Internal Revenue Code . This is so , because the law for residents anbd non -residents are quite different. So , how do you determine if you are resident as per US tax laws ? Well the Internal Revenue Code (26 US Code )  7701

Read moreHow to Find if You Are Tax Resident of USA ?

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