Depending on how much earned and unearned income they have, dependents may have to file a tax return
Even if you are claimed as a dependent on someone else’s return, you may still have to file a return of your own.
Whether or not you have to file depends on how much income you have, specifically how much earned and unearned income.
Only Earned Income
In the chart below is the amount of earned income above which a dependent must file a tax return. As with almost everything involving the IRS, this isn’t just one simple number. The threshold changes depending on your filing status, age, and blindness. Find your situation on the chart to see how much earned income will force you to file a return.
Continue reading “Do Dependents Have to File Taxes?”
2011 personal exemptions can help you get unclaimed IRS money
With the 2012 tax season less than two months away now is the time to brush up on your tax knowledge. One of the most fundamental things you should know about when filing your return is how to claim income tax exemptions.
An income tax exemption allows you to deduct a certain amount of money from your Adjusted Gross Income, thus reducing the total amount of money on which you must pay taxes. Let’s put it this way: income tax exemptions save you money.
And, as it turns out, the federal government holds on to millions of dollars in unclaimed deductions every year. So it’s important to claim every deduction that applies to you in order to keep all of the money you’re entitled to. Continue reading “Income Tax Exemptions”