- You must know your tax laws, and obey them to the letter.tax forms image by Chad McDermott from Fotolia.com
Knowing the tax rules that the IRS has imposed can save you from much legal grief. Not following the tax laws of the land can lead to charges related to tax evasion. Criminal and civil penalties may indeed apply. According to the Taxation Law Firms website, tax evasion is a five-year, $250,000 felony. - According to the H&R Block website, you must file a tax return if someone can claim you as a dependant, and your unearned income is at or over $950. Even as a dependant, if your income is at $5,700 or above, you must file.
If you are single person under 65 years of age, and your gross income is $9,350 or above, you must file. If you are single and 65 or older, you must file a tax return with the IRS if your income is greater than or equal to $10,750.
As a married person, if you file jointly with your spouse, and your joint gross income is $18,700, and you are both younger than 65, you must file a return; if you are both 65 or older, your threshold amount is $20,900; and, if only one of you is 65 or older, you must file if you make $20,900 or more. - The deadline to turn in your tax return is April 15. However, according to the Tax Me Less website, you may automatically qualify for an extension if, on April 15, you are a citizen who is out of the United States or Puerto Rico because of work or military service. Nevertheless, you must file an attachment on your return that explains why you feel you qualify for such an extension. You are also responsible for any interest that accrues between April 15 and the time you pay.
The website also mentions another extension for which you can apply. In order to obtain even more time, you must apply using form 2350, which is the Application for Extension to File, after the end of the tax year in question, but before your first extension terminates. - Making a false statement on a tax return in order to receive credits to which the law does not entitle you is a three-year felony. You could also end up paying $250,000 in fines. According to the Taxation Law Firms website, you commit this crime if you either purposely understate your income, omit key data, or claim a minor child whom you are ineligible to claim as a dependant.
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