Individuals who fall below the minimum may still have to file a tax return under certain circumstances; for instance, if you had $400 in self-employment earnings, you’ll have to file and pay self-employment tax. If you have no income, however, you aren’t obligated to file.
What happens if you dont report taxable income?
Not reporting cash income or payments received for contract work can lead to hefty fines and penalties from the Internal Revenue Service on top of the tax bill you owe. Purposeful evasion can even land you in jail, so get your tax situation straightened out as soon as possible, even if you are years behind.
Do you have to file a tax return if you have no income?
If the only income that you had was from Social Security benefits, most likely these benefits are not considered taxable income. You are not required to file a tax return. For more information about who must file a return, please reference the IRS Form 1040 Instructions.
Why are so many people not filing tax returns?
And this, too, becomes a reason for people not filing returns. Do remember that eventually, the tax department will use its database to find people who are not regular. Another common reason for non-filing is ignorance or confusion about the process—which tax forms to use, when to submit, what information to give, and other such questions.
What happens if you file a joint income tax return?
Further, if you file a joint return, you get an exemption for your non-earning spouse as well as yourself, which for the 2017 tax year reduces your taxable income by $4,050. However, as of 2018, new tax law reforms have done away with personal exemptions.
Why do I need to file a tax return?
As mentioned above, in both the cases, you need to file your return, either to discharge your tax dues or claim refunds. Tax returns give a detailed account of the total income earned and total tax paid by you. Moreover, these documents are accepted by various agencies as a proof of your income.