Taxation & Estate Planning

?The Case of Nonfilers wanting to File

By Darrin Mish

There is a misconception that everyone needs to file their tax returns, no matter how much they earn simply to be accountable. The truth is, according to the tax code, millions of individuals every year do not need to file any tax returns. But with the government's stimulus benefits given to taxpayers, everyone wants to file hoping to get some share of this benefit.

Just who is a nonfiler? According to the IRS, a person who does not earn more than $3,000 from any number of sources does not need to file an annual tax return. This is also the amount you will have to make to be eligible for a stimulus check from the government. But if you earn more than $3,000 per year, you must file your tax returns. The $3,000 number also applies to families, therefore if you and your spouse earned more than $3,000 as a family, then you will need to file a tax return. The IRS has set up a Free File system to assist those nonfilers who intend to file.

The IRS Free File system is basically to enable people who do not earn much money to file their tax returns for free. It is open to over 97 million Americans who made less than $54,000 last year. Hence you do not have to engage companies like H&R Block to file for you, neither do you have to buy expensive online filing software. There are a whole host of companies that will perform your Free File for you. All the information you need about the Free File system is available from the Free File website. Just visit the site and make your selection of the company you would like to perform your Free File for you.

You may want to make your filing in order to take advantage of the stimulus benefit. The Obama Administration put forth this system to help stimulate the economy. Each person earning over $3,000 is eligible to get a $300 check from the government and families can receive up to $600. Are these measures working? That's anybody's guess. It appears to have had some effect on the stock market, but not as much on job creation. These checks are still available from the government, even if you are filing long past the deadline.

This year saw record numbers of nonfilers file their tax returns, many for the very first time. Millions of stimulus checks were sent out and, even though its effect on the economy is uncertain, there is a strong hope that such a system will again be in force in 2010. If it is, the Free File system will still be available for you if you are eligible. So if you are a nonfiler and you want to file, there are free and easy-to-use ways to get your taxes done fast using the Free File system.

?The Case of Nonfilers wanting to File is a post from: IRS Tax Problem Solver Blog - IRS Help

Full post as published by IRS Problem Solver Blog on February 09, 2010 (boomark / email).