Information for the individual

Must I file a tax return? (tax year 2006)

If you are single and under age 65
…You must file a return if gross income is at least $8,450.00

If you are single and age 65 or older on or before January 1, 2007

…You must file a return if gross income is at least $9,700.00

If you are married and living together at the end of 2006

Filing a joint return if gross income (both spouses under age 65)$16,900
Filing a joint return if (one spouse age 65 or older)$17,900
Filing a joint return if (both spouses age 65 or older)$18,900
Filing separate return any age must file if income is$3,300

Married and living apart at the end of 2006 filing a joint or separate return $3,300

Head of Household maintained for a child or other relative under age 65 $10,850

Age 65 or older on January 1, 2007 $12,100

Widowed in 2005 or 2004 and have a dependent child and under age 65 $13.600.

Age 65 or older on or before January 1, 2007 $14,600.

Other situation where you must file

Even if you are not required to file under the gross income tests, you must file a return if:

  1. You are self-employed and you owe self-employment tax because your net self-employment earnings are $400.00 or more or
  2. you are entitled to a refund of taxes withheld from your wages or a refund based upon the earned income credit for working families or
  3. You received any earned income credit payments in advance from your employer or
  4. you are a non-resident alien with U.S. business or have tax liability not covered by withholding see 1040NR.

What is my filing status?

Single

Not married as of December 31st

Marital status:

For federal tax purposes, only a man and a woman in a legal union as husband and wife are considered married. For 2006 returns, marital status is generally determined as of December 31, 2006. Thus, if you were divorced or legally separated during 2006, you are not considered married for 2006 tax purposes and you must file suing the filing threshold for single persons unless you qualify as HEAD OF HOUSEHOLD or you married in 2006 and are filing a joint return with your new spouse.

Head of Household:

If you are unmarried at the end of 2006 and you maintained a household for your child, parent, or other qualifying relative. Other rules apply.

Married Filing Separate

Generally filing a joint return saves taxes for a married couple where one spouse earns all, or substantially all, of the taxable income. Suspicions of your spouses tax reporting—If you suspect your spouse is evading taxes and may be liable on a joint return, you may want to file a separate return. By filing separately, you avoid liability for unpaid taxes due on a joint return, plus interest and penalties.

If you do file jointly and the IRS tries to collect tax due on the joint return from you personally, you may be able to avoid liability under the innocent spouse rules. If you are no longer married to or are separated from the person with whom you jointly filed, you may be able to elect separate liability treatment.

What is income?

This list is not exhaustive—-contact our office if you have any questions

  1. Compensation for services, including fees, commissions, fringe benefits
  2. Gross income derived from business
  3. Gains derived from dealings in property
  4. Interest
  5. Rents
  6. Royalties
  7. Dividends
  8. Alimony and separate maintenance payments
  9. Annuities
  10. Income from Life Insurance and endowment contracts
  11. Pensions
  12. Income from discharge of indebtedness
  13. Income in respect of a decedent (income earned but not received before death)
  14. Income from an interest in an estate or trust