Who Needs to File a Tax Return?

If you earn an income and have wages or other benefits taxed or withheld by an employer, you must file a tax return for that tax year. Based on your individual tax bracket and the number of dependents you expect to claim, taxes will be withheld with the expectation that this amount will cover your tax obligation for the year. A refund or payment will depend on how closely your withholdings match your actual tax obligation. A tax return must be filed by April 15 (unless an extension is filed) to avoid penalties and possible jail time.

Eligibility for Traditional Workers

If federal taxes were withheld from a pension or wages, a taxpayer must file a tax return for the same tax year that the money was withheld. Depending on his tax bracket (which is determined by yearly earned income), allowable exemptions and deductions, as well as any back taxes or child support that is owed, he may qualify for a refund (e.g. the refund amount may not be match the total amount of taxes withheld during the year, as taxpayers are only refunded money that is collected beyond their tax obligation).

Self-Employed Workers

Persons who are self-employed and earning more than $400 annually as a result of that business venture are required to file a tax return.

Property Sale

Persons who sell a house or other high-value property are required to file a tax return.

Church Employee

Church employees with earned income greater than $108.28 must file a tax return if that church or qualified church-controlled organization is exempt from employer Social Security or Medicare taxes.

Retirement Distributions

You must file a tax return if you received a distribution greater than $160,000 from a qualified retirement plan.

Earned Income Tax Credit

Persons who are entitled to receive the Earned Income Tax Credit must file a tax return in order to receive it.

References

• IRG.gov