Most people have their taxes filed because it is required, but even if they do not have to legally file taxes, there are times when you should file a federal tax return. For example, you may be eligible for a tax refund and not know it.
Who Must File a Tax Return for 2014
This year there are several new rules for some people in regards to health insurance. It is important to remember, that when in doubt, it is probably better to file a tax return than not filing. Forgetting to file a tax return can lead to IRS penalties and fine. No one wants that. . Here are six tax tips to help you decide whether to file a tax return.
Do you need to file a tax return?
- General filing requirements. The need to file a tax return depends on several factors. For most taxpayers, the amount of your income, filing status, and age determine whether you should file taxes. For example, if you are single and 30 years old, you must file a tax return if your income was at least $ 10,150 in 2015. Other rules may apply if you are self-employed or if you are a dependent of another person. There are other situations in which they must submit. Visit IRS.gov/filing to determine if you need to file a tax return.
- New for 2014: ACA Tax Credit. If you obtained health coverage through the Health Insurance Marketplace in tax year 2014, you may be eligible for a new tax credit. You must file a tax return to claim the credit. If you purchased coverage through the market in 2014 and chose the premium tax credits that were sent in advance directly to the insurance company during the year, you must file a federal tax return. You must reconcile any prepayment premium tax credit allowed. Your health insurance market will provide the form 1095-A, Statement Health Insurance Market in early February.The new form contains the information you need to file your tax return in order to properly be eligible for this tax credit.
- Withholding or Paid. Does your employer withheld federal income tax from your pay? Did you pay over the last year and applied to tax this year? If you answered “yes” to any of these questions, you may have a refund due. But you must file a tax return to get it.
- Earned Income Tax Credit (EITC). Did you work last year and earned less than $ 52,427? You may receive the EITC as a refund if you qualify, with or without a qualifying child. You may be eligible for up to $ 6,143.
- Additional Child Tax Credit. Do you have at least one qualifying child for the child tax credit? If you do not receive the full amount of the credit, you may qualify for the Additional Child Tax Credit.
- The American Opportunity Credit. The American Opportunity Credit is available for the first four years of higher education and can be up to $ 2,500 per eligible student. You or your dependent must be students enrolled at least half time during an academic period. Even if you do not owe taxes you may qualify. However, you must file Form 8863, Education Credits, and file a tax return to receive credit. Use the Interactive Tax Assistant Tool on IRS.gov to determine if you can claim the credit. Learn more by visiting online on Education Credits. Instructions for Forms 1040 , 1040A or 1040EZ listed requirements to file a tax return.
Additional IRS Resources on Who Should File Taxes
- Form 8962 , Health Insurance Tax Credit
- Publication 5187 , Health Care Law: What’s New for individuals and families
- Annex 8812 (1040A or 1040), Child Tax Credit
- Form 8863 , Education Credits
- Publication 596 , Earned Income Tax Credit
- Publication 972 , Child Tax Credit
- Publication 970 , Tax Benefits for Education