What does a person have to do if anything to file for American federal and state income taxes if there has been no income and the person has been unemployed for more than a year?

Answer 1

Unless you owe money you don't have to file taxes. Have to do and should do are 2 different things!

General concept: When it's good for the government and bad for you, you have to file. When it's good for you and bad for them, you don't have to do it.

When you don't have to pay (or file) doing so may get you some $! Anyone may file a return. It is generally a good idea for many reasons. Many people who may not have to file a return (generally because their earings are too low), will benefit substantially by doing so...because of the many government programs that provide benefits to those same people. You must file a tax return if your income is above a certain level. The amount varies depending on filing status, age and the type of income you receive. Contrary to the above, you may have to file although you may not have to pay or owe anything because of deductions, exemptions and such.

For example, a married couple under age 65 generally is not required to file until their joint income reaches $16,900. However self-employed individuals generally must file a tax return if their net income from self employment exceeds $400. HOWEVER - WHILE THEY MUST FILE, NEITHER WILL LIKELY ACTUALLY HAVE TO PAY ANYTHING.

Check the individuals section of the IRS Web site at IRS.gov or consult the instructions for form 1040, 1040A or 1040EZ for specific details that may affect your need to file a tax return with IRS this year. Even if you do not have to file, you should file to get money back if Federal Income Tax was withheld from your pay, or you qualify for any of the following: Earned Income Tax Credit. The Earned Income Tax Credit is a federal income tax credit for eligible low-income workers. The credit reduces the amount of tax an individual owes, and may be returned in the form of a refund. Telephone Tax Refund. The telephone tax refund is a one-time payment available on your 2006 federal income tax return, designed to refund previously collected long-distance federal excise taxes. It is available to anyone who paid long-distance taxes on landline, cell phone or Voice over internet Protocol (VoIP) service. Additional Child Tax Credit. This credit may be available to you if you have three or more qualifying children or if you have one or two qualifying children and earned income that exceeds $11,300. The Additional Child Tax Credit may give you a refund even if you do not owe any tax. Health Coverage Tax Credit. Limited to certain individuals who are receiving certain Trade Adjustment Assistance, Alternative Trade Adjustment Assistance, or pension benefit payments from the Pension Benefit Guaranty Corporation. For more information about filing requirements and your eligibility to receive tax credits, visit the IRS Web site at IRS.gov.