Tax Question

[Inky 1,111]

I dont understand how people in America say they have NEVER filed taxes before..

I understood it from my uncle that in america you HAVE to file taxes regardless if you are a student with no job or in the poverty lines etc or there would be BIG issues.

My uncle is a high up bank man in america. Hes a very smart man and knows quite a lot but is he wrong about this? Can someone just not file taxes?

Its not my intention to ever do this ( not file ) im just very curious as I see alot of people saying they have no proof for the support affidavits as they have never filed taxes.

edit : I always did taxes in canada, sometimes I did them late but thats cus I was in school and didnt make enough to owe the government and could file late as they owed me and not the other way around. But I did always file it. My mom was always very adamant about filing taxes and always saying that you cant just not file it too.

Edited October 22, 2009 by Inky

[trailmix 77]

Yes, there is an income limit published in the 1040 guide each year. If you fall under that limit (with no other extenuating circumstances) then no, you don't have to file.

(it's the same in Canada btw, if you don't owe taxes you don't have to file - in a nutshell)

Edited October 22, 2009 by trailmix

[Inky 1,111]

Yes, there is an income limit published in the 1040 guide each year. If you fall under that limit (with no other extenuating circumstances) then no, you don't have to file.

What do you mean by no other extenuating circumstances?

Is there a place online to see the 1040 guide? Haven't looked into taxes yet since I been here.

[trailmix 77]

I mean like if you want to file to claim credits etc - but I guess even that isn't an extenuating circumstance as that is credit related not income related. But in Canada an extenuating circumstance would be if a couple does pension splitting in a year - then they have to file regardless of income, that kind of thing.

1040s are online - just google 1040 and the year you want to look at.

And if you have a look at the instructions for 2008, as an example, (pages 7-8) you will see the thresholds for last year.

http://www.irs.gov/pub/irs-pdf/i1040.pdf

Edited October 22, 2009 by trailmix

[Inky 1,111]

What about audits if you don't file? If someone was to not file for many years wouldnt they get interested and seek you out as to why you never filed? or because you never filed they dont have anyone/ anything to seek out?

and people who dont file taxes for a long time, then do file don't they get looked into as well?

[trailmix 77]

I don't know, maybe some do? I doubt if it's regularly done though.

For instance, I never filed U.S. taxes, because I had never documented my U.S. citizenship - until 2007 (however legally I am considered a U.S. citizen since birth). Then, of course I had to file for the I-864. I called the IRS, they said just file the 3 years and I did.

Legally you don't have to file in certain circumstances so I can't see them seeking out people who miss a few, or several years - but I don't know, it's an interesting question.

[Inky 1,111]

So a person files Federal and state taxes?

Looking at my husbands he files federal and state for Iowa but not for Nebraska where we live?

If we file joint tax... will that be for Federal and state? or do I have to file seperatly for the state of nebraska when I start working here. lol this seems like its going to get really confusing!!

He uses turbo tax too.

haha thanks for all the answers so far Trailmix! you know muchly informations!!

(P.S hes military )

Edited October 22, 2009 by Inky

[trailmix 77]

In most states yes, unless there are no state taxes. My Sister lives in Nebraska too but sometimes her Husband works in Iowa and some other states - each year they do his returns for 3-4 states (plus federal) - it's not pretty

I assume your Husband works in Iowa, although he lives in Nebraska?

[Inky 1,111]

Nope lives and works in nebraska on the base here! that really big big one lol. Thats why im a lil confused that he doesnt file the nebraska ones? Unless thats something to do with military stuff cus he joined the military in Iowa and hes stationed here in nebraska.

omg 3-4 states .. I cant even do taxes with turbo tax or understand H&R block.. I think my brain would explode if it hasnt already!!

Also doesnt have a nebraska driver license or anything like that.

Edited October 22, 2009 by Inky

[trailmix 77]

Yes, must have something to do with the military. Yes, it's complicated, my Sister has taken her taxes in to H&R block a couple of times when it has all been toooo complicated, but it cost her 2-3 hundred dollars, since they charge for every state.

Mind you, once you get used to doing it you will probably be fine.

[Inky 1,111]

Yes, must have something to do with the military. Yes, it's complicated, my Sister has taken her taxes in to H&R block a couple of times when it has all been toooo complicated, but it cost her 2-3 hundred dollars, since they charge for every state.

Mind you, once you get used to doing it you will probably be fine.

haha thanks for the answers and the chat! bored and home alone for the last week + a few days and was lookin for some appealing entertainment and knowledge!

If it doesnt become fine ill just have him do it for me all the time, after all he was going to be a tax person if he didnt join the military haha

[Malrothien 6]

When I first started having to file taxes, I technically didn't because I fell under the income limit. However, I still did because I always got back a small refund.