Do you have to file a tax return?

Most people file a tax return because they have to. Even if you don’t have to file, there are times you should. You may be eligible for a tax refund and not know it. In another word may be you are not require to file but you file anyway if:-

1.    General Filing Rules.  In most cases, income, filing status and age determine if a taxpayer must file a tax return. Other rules may apply if the taxpayer is self-employed or a dependent of another person. For example, if a taxpayer is single and under age 65, they must file if their income was at least $10,350. There are other instances when a taxpayer must file.

2.    Tax Withheld or Paid.  Did the taxpayer’s employer withhold federal income tax from their pay? Did the taxpayer make estimated tax payments? Did they overpay last year and have it applied to this year’s tax? If the answer is “yes” to any of these questions, they could be due a refund. They have to file a tax return to get it.

3.    Earned Income Tax Credit.  A taxpayer who worked and earned less than $53,505 last year could receive the EITC as a tax refund. They must qualify and may do so with or without a qualifying child. They may be eligible for up to $6,269.

4.    Additional Child Tax Credit.  Did the taxpayer have at least one child that qualifies for the child tax credit? If they do not qualify for the full credit amount, they may be eligible for the Additional Child Tax Credit. Beginning in January 2017, by law, the IRS must hold refunds for any tax return claiming either the earned income tax credit or the additional child tax credit until Feb. 15. This means the entire refund, not just the part related to either credit.

5.    American Opportunity Tax Credit.  The taxpayer, their spouse or their dependent must have been a student enrolled at least half time for one academic period to qualify. The credit is available for four years of post-secondary education. It can be worth up to $2,500 per eligible student. Even if the taxpayer doesn’t owe any taxes, they may still qualify.

Some Refunds Delayed in 2017

Starting in 2017, the IRS can’t issue refunds before Feb. 15, 2017, for returns that claim the Earned Income Credit (EIC) or the Additional Child Tax Credit (ACTC). This applies to the entire refund, not just the portion associated with these credits. As in past years, the IRS will begin accepting and processing tax returns once the filing season begins 01/23/2017.

Even though the IRS cannot issue refunds for some early filers until at least Feb. 15, the IRS reminds taxpayers that most refunds will still be issued within the normal timeframe: 21 days or less, after being accepted for processing by the IRS

Tax Fraud Scams AGAIN

Don’t fall victim to scams involving tax fraud. Remember — if it sounds too good to be true, it probably is.

Please note that the IRS does not initiate contact with taxpayers by phone or email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels.

Note that the IRS will NEVER:

·        Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail you a bill if you owe any taxes.

·        Threaten to immediately bring in local police or other law-enforcement groups to have you arrested for not paying.

·        Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.

·        Ask for credit or debit card numbers over the phone.

Examples of recent scams include:

·        Fake IRS tax bills related to the Affordable Care Act. Generally, the scam involves a fraudulent version of CP2000 notices for tax year 2015.

·        Telephone scammers targeting students and parents during the back-to-school season and demanding payments for non-existent taxes, such as the “federal student tax.”

·        “Robo-calls” where scammers leave urgent callback requests through the phone telling taxpayers to call back to settle their “tax bill.” In the latest trend, IRS impersonators demand payments on iTunes and other gift cards.