This is one of the most popular questions, and crosses mind every so often. The answer depends on individual situations. There is no magic formula that would determine this, and vary from situation to situation.
Internal Revenue Service has a general guideline to determine if you are required to file a tax return. 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.
Click here to answer short questions to determine if you are obligated to prepare and file a US Federal income Tax return.
Remember that even if you are not required to file a return, it might be advantageous to file a tax return under certain situations:
Federal Income Tax Withheld: If there is any withholding from your compensations, you need to file a return to claim refund.
First time Homebuyer Credit: If you bought a home (primary residence or main home) after April 8, 2008, and before July 1, 2009 and did not own a primary residence or main home during the prior 3 years, you may be able to take this credit by filling the tax return.
Recovery Rebate Credit: If you did not qualify or did not receive the advance amount for the 2008 Economic Stimulus Payment, you may be entitled to a Recovery Rebate Credit when you file your 2008 tax return.
Earned Income Tax Credit: You might be qualified for the Earned Income Tax Credit, if you had an earned income, but did not make enough to qualify for filling return.
If you still have questions you may contact us, and we would be more than happy to assist you.