Charlie Jones, Chief Compliance Officer, JK Harris and Company
Tax season is upon us, but you say you aren’t sure whether or not you should file a tax return. The safest thing to do is to go ahead and file, even if you are not required to.
You need to file a return if your income is above a certain level. That income level varies depending on your current filing status, age and the type of income you received in 2007. For example, if you and your spouse are both under 65 you are not generally required to file until your joint income reaches $17,500. If however, you are self-employed, you generally need to file a tax return if your net income for 2007 reaches at least $400.
Even if you are not required to file a return, I recommend that you file so that you can get back any money that may have been withheld from your pay in 2007. You may also qualify for a refundable credit such as Earned Income, Additional Child or Health Coverage tax credits. The Earned Income Tax Credit and the Additional Child Tax Credit are the most common refundable credits. The EITC is for eligible low-income workers and it reduces the amount of tax an individual owes and may be returned to you as a refund. The Additional Child Tax Credit may be available if you have at least one qualifying child and you did not use the full amount of your Child Tax Credit.
If you are still uncertain as to whether or not you should file, you can refer to IRS Publication 501 ‘Exemption, Standard Deduction and Filing Information for 2007’ on the IRS’ website at www.irs.gov/pub/irs-pdf/p501.pdf.
Charlie Jones is the Chief Compliance Officer at JK Harris, LLC. Charlie worked with the IRS for 30 years, with 27 of those years being in the Collection Division. This has allowed him to serve JK Harris as a Technical Advisor and Director of Operations for Tax Resolution Services.