Friday, April 10, 2009

Last minute rush to file?

In a survey that just ended regarding plans to file 2009 income tax returns, there were 41 readers who responded. Thanks.

The question was, "Have you filed your income tax returns yet?"

The results?

No - 13 (32%)
Yes - 21 (51%)
Not planning to file - 7 (17%)

Some of the 17% may not be required to file. Are there some who will not file, knowing that they are required to do so?

If a person receives $400 in net self-employed income, he is required to file a tax return with IRS, even if he owes no income tax. The tricky part here is that the organization which does not withhold taxes on monies paid to an independent contractor only has to report payments over $600 to IRS. So a person could earn $599, not receive a Form 1099, and either not know that he must file the return and pay the Self-Employment Tax or, worse, know about it and fail to file.

Somehow, I don't think IRS looks too fondly on the person who "forgot" to file.

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