Chapter 2: Income Tax Filing Requirements

Nondependent Taxpayer (2.2)

Filing requirement determined by: 1. Filing Status 2. Age 3. Gross Income Most nondependent taxpayers must file returns when their gross income equals or exceeds the sum of the standard deduction and personal exemption amount, (which changes due to the taxpayer's filing status and age.)

Filing Requirements (2.2)

Filing requirements differ among the following: 1. Nondependents 2. Dependents 3. Certain children under age 19 or full-time students under age 24 4. Self-employed individuals 5. Aliens

Filing Status (2.2)

For federal income tax purposes, there are five filing statuses: 1. Single 2. Married filing jointly 3. Married filing separately 4. Head of Household 5. Qualifying widow(er)

Married Taxpayers

Married taxpayers may choose to file jointly or separately. In most cases, filing jointly is more beneficial than filing separately. If a taxpayer is considered unmarried at the end of the tax year, the taxpayer may file single, head of household, or qualifying widow(er), assuming the taxpayer is eligible to claim the filing status. (One spouse is NEVER the dependent of the other spouse. When the "married filing separately" status is used, however, a taxpayer may claim his/her spouse's personal exemption only if the spouse a.) has no gross income, b.) is not filing a return, and c.) is not a dependent of another person. If the taxpayer's spouse is a non-resident alien, the taxpayer may claim an exemption for their spouse if the nonresident alien spouse meets the three previously named requirements.)

Community Property (G.6)

Property considered to belong in equal shares to a husband and wife. (Community property states: Arizona, California, Idaho, Louisiana, New Mexico, Nevada, Texas Washington, and Wisconsin.

Joint Return (G.16)

A return combining the income, exemptions, credits, and deductions of a two spouses.

Common Law Marriages (2.3)

A taxpayer is considered married if, at the end of the tax year, the taxpayer is in a common-law marriage that is recognized in the state where the couple is residing or was at the time recognized by the state where the common-law marriage began. (Not recognized in NYS.) Specific requirements vary by state, but four legal standards must generally be met: 1. The parties must have the legal capacity to marry 2. Single parties must have the intent to marry, i.e., they must intend to be married and must communicate that intent to one another. 3. The couple must live together 4. The parties must publicly present themselves to others as a married couple. (There is no time-limit or set number of years a couple must live together to be recognized to have a common law marriage.)

Personal Exemption Amounts

An exemption is a dollar amount ($3,950.00 for 2014) allowed by law as a deduction of income that would otherwise be taxed. The exemption is in addition to the taxpayer's standard deduction. Every taxpayer, except those who may be claimed as a dependent on another taxpayer's return, may claim his own personal exemption. Thus, most tax returns will show one personal exemption, or two in the case of a married couple filing jointly. (NYS state residents may deduct NY State and Local taxes if they itemize.)

Nondependent Taxpayer Filing requirements (2.2)

As a general rule, a nondependent taxpayer is required to file a tax return when their gross income is equal to or greater than the sum of the taxpayer's standard deduction and personal exemption amount (combined). However, a married taxpayer using the Married Filing Separately (MFS) status must file a return when their gross income equals or exceeds the personal exemption amount, ($3,950.00 for 2014). (May be required to file a return due to specific circumstances, regardless of whether their income is less than their filing requirement thresholds. These circumstances include but are not limited to receipt of self-employment income, unreported tips to employer, distributions from an HSA or MSA, or the receipt of the advanced premium tax credit (APTC).)

Same Sex Marriages (2.4)

For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now reside does not recognize same-sex marriage. For federal tax purposes, the term "spouse" includes an individual married to a person of the same sex if the couple was lawfully married under state (or foreign) law. (However, individuals who have entered into a registered domestic partnership, civil union, or other similar relationship that is not considered a marriage under state (or foreign) law are not considered married for federal tax purposes.)

Age

For general tax purposes, a person is considered to have attained any given age on the first moment of the last day of that year of his or her life--that is to say, the day before his or her birthday.

Community Income (G.6)

Income of a married couple living in a community property state. It is considered to belong equally to each spouse, regardless of which spouse receives the income.

Increasing Standard Deduction (2.7)

Taxpayers age 65 or older and/or blind are entitled to the follwing increased standard deduction amounts: 1. $1,550.00 (per condition) for singles and heads of household 2. $1,200.00 (per condition) for all married taxpayers and heads of household The increased amounts are calculated per the boxes checked on line 23a, Form 1040A. (The filing requirement computation for taxpayers age 65 and over includes the extra amount for age, but the extra amount allowed for blindness is not included in the computation.)

Dependent Taxpayer (2.9)

Taxpayers who may be claimed on another taxpayer's tax return. May NOT claim their own personal exemption on their tax return. (This is true even if the other taxpayer refrains from claiming the dependency exemption.) The dependent taxpayer's requirement to file is based on their unearned income, earned income, gross, gross income, marital status, age, and whether the dependent taxpayer is sighted or blind. (May be required to file a return due to specific circumstances, regardless of whether their income is less than their filing requirement thresholds. These circumstances include but are not limited to receipt of self-employment income, unreported tips to employer, distributions from an HSA or MSA, or the receipt of the advanced premium tax credit (APTC).)

Married, Filing Separately (MFS) G. 18)

The filing status used by a married couple choosing to record their respective incomes, exemptions, and deductions on separate individual tax returns.

Married, Filing Jointly (MFJ) (G.17)

The filing status used by a two partners who are marred at the end of the tax year and not legally separated under a final decree of divorced or separate maintenance, and who record total income, exemptions, and deductions of both spouses on one tax return.

Head of Household (G.14)

The filing status used by an unmarried taxpayer who pays more than half of the cost of maintaining a household for a qualifying child who is a dependent for more than six months, or for his or her mother or father for the entire year, and may claim either on his or her tax return.

Determining Filing Status (2.3)

The first step in determining a taxpayer's filing status is to determine the taxpayer's marital status. Marital status (married or unmarried) is determined on the last day of the tax year. The marital status of a person who died during the year, as well as that of the surviving spouse, is determined as of the date of death. A taxpayer considered unmarried on the last day of the tax year may be eligible to file as single, head of household, or qualifying widow(er). A taxpayer considered married on the last day of tax year may file as MFJ or MFS.

Standard Deduction (G.27)

A base amount of income not subject to tax. (The regular standard deduction for 2014 is $6,200.00 for single taxpayers and married persons filing separately; $9,100.00 for heads of households; and $12,400.00 for married couples filing a joint return and qualifying widow(er)s. Taxpayers who are blind and/or 65 or older have higher standard deductions. Taxpayers who may be claimed as dependents on other taxpayers' returns may have reduced standard deductions.

Blindness

A taxpayer may claim the additional standard deduction for blindness ($1550.00 in 2014) if they are totally or partly blind at the close of the tax year. (Partly blind means the person is able to see no better than 20/200 in the better eye with corrective lenses, or the person has a field of vision not more than 20 degrees.)