Filing Requirements

The first step in completing an income tax return is to determine if the taxpayer needs to file a return in the first place. In this section, you'll study the filing requirements for federal income tax purposes.

Individuals who had income tax withheld from their wages or who are eligible for certain credits, which you'll learn about later in this course, should file a tax return, even if not required to do so.

Special filing requirements apply to taxpayers who may be claimed as dependents on another taxpayer's return. First, we'll discuss taxpayers who are not dependents; then we'll look at those who are dependents.

Non dependent Taxpayers

In order to determine if a taxpayer is required to file an income tax return, you need to know his marital status, age, and gross income. You need to know the marital status and whether the taxpayer is age 65 or older because these facts help you determine how much gross income the taxpayer may have before being required to file. Once marital status is determined, you need to know whether a married couple will file a joint return or separate returns because this choice also affects filing requirements with respect to income.

Marital Status

Marital status (married or unmarried) is determined by the taxpayer's status of a person who died during the year, as well as that of his surviving spouse, is determined as of the date of death.

Example:

Maricar and Mario were wed on December 31, 2007. They are considered married for the 2007 tax year.

Rey and Ani's divorce decree became final on December 31, 2007. They are considered unmarried for the 2007 tax year. Arding and Remy were married on the day Arding died, March 27, 2007. Both Arding and Remy are considered married for the year 2007 tax.

Common Law Marriage

A taxpayer is considered married if, at the end of the tax year, he is in a common law marriage that is recognized in the state where the couple is residing, or was at the time recognized by the state where the common law marriage began.

AGE

Taxpayers are considered to be age 65 on the day before 65th birthdays.

Example:

Jacob Martin's 65th birthday is January 1, 2007; for tax purposes, he is considered age 65 for the 2006 tax year.

The age of a person who dies during the year is determined as of the date of death.

For federal income tax purposes, there are five filing statuses:

1. Single;
2. Married filing jointly;
3. Married filing separately;
4. Head of household; and
5. Qualifying widow(er)

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