Federal Tax Returns: Knowing when to file.

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There’s no doubt about it, filing taxes is a stressful time of year. Just hearing the word taxes can make your head spin. While most people realize they are supposed to file taxes, it can be confusing whether or not you’re supposed to file federal taxes. Some people even file federal taxes just to be on the safe side. You’ve heard the saying “better to be safe than sorry” well the IRS doesn’t feel this way. It’s a lot of unnecessary work for both you and for them. Here are some questions you can ask yourself in order to find out if you really need to file a federal tax return.

1. Where there any Federal taxes withheld from your pension or wages and you would like a refund?
2. Are you eligible for the Earned Income Tax Credit or received an advance on this tax credit?
3. Are you self-employed with earnings over $400?
4. Have you sold a home?
5. Do you owe any special tax on a qualified retirement plan, (either and IRA or MSA)?
6. Do you owe Medicare or SS taxes on tips you did not inform your employer of.
7. Do you owe uncollected Medicare or SS or Railroad retirement tax on tips that you did inform your employer of?
8. Are you subject to the Alternative Minimum Tax?
9. Do you owe a recapture tax?
10. Do you work for a church, making more than $108, where the organization is exempt from Medicare or SS?

If you answered yes to any of these questions, you will probably have to file a Federal Income Tax Return.

Complete your state tax return, after your federal tax return is finished. In some states, the federal tax return is attached to the state return when the state return is filed. If your Federal tax return is filed electronically, you must print out a copy of your completed tax. The Employer's Quarterly Federal Tax Return is required if you have employees Federal taxes are paid at the time a federal tax return is submitted for the year of the sale.

Once your federal tax return is finished, some programs will take you through a sort of "internal audit" checking for mistakes and red flags. Avoid unnecessary delays by making sure to sign your return, your federal tax return is not considered a valid return unless it is signed.

Copyright 2007-2008 Jim Sterling - All Rights Reserved

Good luck putting this information to good use. Once again thanks for reading.

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