OLT TAX CORNER ~ Filing Requirements

How do I know if I am required to file federal income tax return?	Top
Federal Filing Requirements - 2008 IF your filing status is: AND at the end of 2008 you were:* THEN file a return if your gross income**was at least: Single Under 65 $8,950 Single 65 or older $10,300 Married Filing Jointly*** under 65 (both spouses $17,900 Married Filing Jointly*** 65 or older (one spouse $18,950 Married FIling Jointly*** 65 or older (both spouses $20,000 Married Filing Separately any age $3,500 Head of Household Under 65 $11,500 Head of Household 65 or older $12,850 Qualifying Widow(er) with dependent child Under 65 $14,400 Qualifying Widow(er) with dependent child 65 or older $15,450 *If you were born on January 1, 1944, you are considered to be age 65 at the end of 2008. **Gross income means all income you received in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States (even if you can exclude part or all of it). Do not include social security benefits unless you are married filing a separate return and you lived with your spouse at any time in 2008. ***If you did not live with your spouse at the end of 2008 (or on the date your spouse died) and your gross income was at least $3,500, you must file a return regardless of your age. Even if you are not required to file a federal income tax return, you should file a return if you are due a refund.
What is a 1040?	Top
Form 1040 is the tax form used for filing a tax return. There are actually three different versions of 1040. Form 1040EZ, Form 1040A and Form 1040. You will generally choose which form is right for you depending on your taxable income, filing status, and deductions and credits you can claim.
How do I know if I need to file a 1040 tax form?	Top
Form 1040 should be used when itemizing deductions and reporting more complex investments and other income. Other reasons to file Form 1040 include taxable income of $100,000 or more, self-employment, and income from the sale of property and you are claiming tax credits. We will populate which 1040 Form is needed based on your inputs.
What is a 1040EZ?	Top
Form 1040 EZ is the simplest tax form to file. Generally you would file a 1040 EZ form if you do not have any dependents, credits and you are filing using a standard deduction.
How do I know if I need to file a 1040EZ form?	Top
There are some general guidelines provided by the IRS to determine if Form 1040EZ is the form you should use. There are some general guidelines provided by the IRS to determine if you should file Form 1040EZ. These guidelines include:
Taxable income below $100,000 Single or Married Filing Jointly Under age 65 No dependents Interest income of $1,500 or less
If you meet these requirements, then you should choose Form 1040EZ when filing your tax return however, filing a 1040A or 1040 when you have these limitations is okay also.
How does living in a community property state affect my taxes?	Top
Community property laws affect how you figure your income on your federal income tax return if you are married, live in a community property state or country, and file separate returns. Your tax usually will be less by filing a joint return if you are married. Sometimes it can be to your advantage to file separate returns. If you and your spouse file separate returns, you have to determine your community income and your separate income. Community property laws also affect your basis in property you inherit from a married person who lived in a community property state.
What is Form 1040-ES?	Top
Form 1040ES is used to report and pay estimated taxes. Estimated tax is the method used to pay taxes on income that is not subject to withholding. Examples of this type of income are earnings from self-employment, interest, dividends, rents, alimony, etc. Estimated taxes are due quarterly. If you file your taxes based on the calendar year, the due dates are April 17, June 15, September 15, and January 15 of the following year.
How do I know if I need to file Form 1040-ES?	Top
If you earned any income that was not subject to withholding you may be required to pay estimated tax. If you received self-employment income, interest income, dividend income, rent income or alimony, for example, and you did not have federal taxes withheld from those earnings, then you should make estimated tax payments to account for your tax liability.
What is an ITIN?	Top
An ITIN is a nine-digit number issued by the U.S. Internal Revenue Service (IRS) to individuals who are required for U.S. tax purposes to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain, a social security number (SSN).
How do I get an ITIN?	Top
Use the January 2008 revision of Form W-7, Application for IRS Individual Taxpayer Identification Number to apply. Attach a valid federal income tax return unless you qualify for an exception, and include your original or certified proof of identity documents. Because you are filing your tax return as an attachment to your ITIN application, you should not mail your return to the address listed in the Form 1040, 1040A or 1040EZ instructions. Instead, send your return, Form W-7 and proof of identity documents to the address listed in the Form W-7 instructions:
Internal Revenue Service Center Philadelphia Service Center ITIN Unit, P.O. Box 447 Bensalem, PA 19020
You may also apply using the services of an IRS-authorized Acceptance Agent or visit an IRS Taxpayer Assistance Center in lieu of mailing your information to the IRS in Philadelphia. TACs in the United States provide in-person help with ITIN applications on a walk-in or appointment basis. Applicants outside the United States should contact an overseas IRS office to find out if that office accepts Form W-7 applications. The IRS's ITIN Unit in Philadelphia issues all numbers by mail.
Can I e-file with form W-7?	Top
No, you have three choices:
By mail. Mail Form W-7, your tax return (or other documents required by an exception), and the documentation required in the instructions to: Internal Revenue Service, Philadelphia Service Center, ITIN Unit, P.O. Box 447, Bensalem, PA 19020. In person. You can apply for a TIN by bringing your completed forms and documentation to any IRS Taxpayer Assistance Center in the United States and most IRS offices abroad. Before applying at an IRS office abroad, find out if that office accepts Form W-7 applications. Through acceptance agent. You can also apply through an acceptance agent authorized by the IRS. To obtain a list of agents, visit the IRS website at www.irs.gov.