These may be uncollected, unreported or non-withheld taxes from earned income. Some may be due to income not reportable by or not originating from an employer.
Others may be temporary incentive credits which were already availed but have become due for recapture.
Here are some of the situations where filing a return is compulsory even with a below-the-limit gross income:
1. Whenever you are eligible to get a refund of any federal income tax withheld.
2. You are eligible for any of the following credits.
– Making work pay credit.
– Earned income credit.
– Additional child tax credit.
– American opportunity credit.
– First-time home buyer credit.
– Credit for federal tax on fuels.
– Adoption credit.
– Refundable credit for prior year minimum tax.
– Health coverage tax credit.
3. If you received any of the following types of remuneration from work:
– You are self-employed and had net earnings of at least $400.
– Your employer gave you an advance earned income credit (EIC) payment
– You are employed by a church or qualified church organization that is exempt from employer social security and Medicare taxes and you were paid wages of $108.28.
4. If there is an uncollected or unreported Federal Insurance Contributions Act (FICA) withholding
– Social security or Medicare tax on tips you did not report to your employer.
– Social security or Medicare tax on wages you received from an employer who did not withhold these taxes.
– Social security on your group-term life insurance
– Medicare tax on tips you did not report to your employer.
– Medicare tax on wages you received from an employer who did not withhold these taxes.
– Medicare tax on your group-term life insurance
5. If there is uncollected railroad retirement tax
– on tips you reported to your employer.
– on your group-term life insurance.
6. If you have to pay household employment taxes.
You have employed outside people to help around in your home, paid them wages and have to pay taxes on that.
7. If you have to pay additional tax payable on retirement plans, health savings accounts and educational savings account
– Additional tax on a qualified retirement plan, including an individual retirement arrangement (IRA).
– Additional tax on an Archer MSA or health savings account.
– Additional tax on a Coverdell ESA or qualified tuition program.
8. If you have availed previous temporary Credits which are due to be recaptured by the government
These are temporary incentives given to taxpayers to tide over adverse economic situations or to subsidize the cost of new reforms but on the condition that the credit availed by the taxpayer will be “recaptured” in a later tax year. Usually, the law would have specified the future date for recapture of such credits already given. You will have to file if any of the following credits are due for recapture:
– investment credit
– low-income housing credit.
– tax on the disposition of a home purchased with a federally subsidized mortgage.
– qualified electric vehicle credit.
– education credit.
– Indian employment credit.
– new markets credit.
– alternative motor vehicle credit.
– first-time home buyer credit.
PLEASE NOTE: Filing a return in these cases need not always be on Form 1040. It can be on another specified form to be attached to the the return or even a separate form designated for that purpose.
For the more detailed information please consult resources provided by the Internal Revenue Service (IRS).