Do I Need to File a Federal Income Tax Return

Many people will file a 2010 Federal Income tax return even though the income on the return was below the filing requirement. The questions below will help you determine if you need to file a Federal Income Tax return or if you need to stop your withholding so you will not have to file a unnecessary return in the future. Even if you do not have to file a return, you should file one to get a refund of any Federal Income Tax withheld.

To determine if you need to file a Federal Income Tax return for 2010 answer the following questions:

Occasionally, individuals have one-time or infrequent transactions that may require them to file a Federal Income Tax return. Do any of the following examples apply to you?

Did you have Federal taxes withheld from your pension wages for this tax year & wish to get a refund back?
Are you entitled to the Earned Income Tax Credit or did you receive Advance Earned Income Credit for this tax back?
Are you entitled to the Earned Income Tax Credit or did you receive Advanced Earned Income Credit for this tax back?
Were you self-employed with earnings of more than $400.00
Did you sell your home?
Will you owe any special tax on a qualified retirement plan (including an individual retirement account (IRA) or medical savings account (MSA)? You may owe tax if you?

Received an early distribution from a qualified plan
Made excess contributions to your IRA or MSA
Were born before July 1, 1938, and you did not take the minimum required distribution from your qualified retirement plan.
Received a distribution in the excess of $160,000 from a qualified retirement plan.

Will you owe social security and Medicare Tax on tips you did not report to your employer?

Will you owe uncollected social security and Medicare tax on tips you did not report to your employer?

Will you be subject to Alternative Minimum Tax (AMT)? ( The tax law gives special treatment to some kinds of income and allows special deductions and credit for some kinds of expenses.)

Will you owe recapture tax? Some (HFA mortgage loan programs are funded by tax exempt mortgage revenue bonds. If you use these programs or receive a credit against your federal income taxes through a Mortgage Credit Certificate, you could be subject to the Federal Recapture Tax if & when you sell your home.

Are you a church employee with income in wages of $108.28 or more from a church or qualified church-controlled organization that is exempt from employer social security or Medicare taxes?

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