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Answers to Frequently Asks Tax Questions:
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1. Generally, the need to file a federal tax return depends on your filing status and your gross income (all income you received EXCEPT social security benefits UNLESS you are married filing separately and you lived with your spouse during the year). The chart below explains who must file a return: |
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Age at the end of 2008 |
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Gross Income was at least... |
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NOTE: In addition to the requirements listed on the chart, you may also have to file a return if you meet one of these conditions:
- You have at least $400 in net earnings from self-employment
- You received Advanced Earned Income Credit (EIC) payments from your employer (reported in box 9 of your Form W-2)
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2. You may want to file a tax return even if you do not meet the conditions above because:
- You may be eligible to receive the Earned Income Credit if you had wages or net earnings from self-employment. Depending on your situation you could get up to $4,824.
- You may be entitled to a refund if taxes were withheld from your wages or other sources of income |
| 3. The following common types of income do not have to be reported on your income tax return: |
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| Benefits for Veterans |
4. Deductions and credits can decrease the amount of taxes you have to pay. Below are some common types of expenses that you can claim a credit or deduction for on your tax return:
- Child and dependent care expenses
- Educational expenses such as tuition, fees, and student loan interest
- Home related expenses such as mortgage interest or real estate taxes
- Contributions made to retirement accounts such as an IRA or 401(k)
- Gifts to charity (monetary and non-monetary)
- Job related expenses such as travel, union dues, uniforms, equipment, etc.
- Medical and dental expenses
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5. Yes. You (and your spouse, if filing jointly) must have an adjusted gross income of $56,000 or less to use TBB to fill out and file your return.
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6. (a) Locate the nearest TBB site by calling 1-866-887-6060 or visiting www.thebenefitbank.com and clicking on The Benefit Bank Locator.
(b) Make an appointment.
(c) Gather your income reporting forms and any other documents showing your expenses in order to claim a credit or deduction --bring ALL forms to your appointment!
Reporting forms are the forms you receive from your employer, banks, schools, and other institutions that are used to show you the amount of income you received from that source AND the amount of money you paid to that institution, which you can use to claim a deduction or credit. |
| Below is a list of those reporting forms that our program asks about:
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7. When filling out a tax return there are usually other forms and schedules that you have to attach to your return in order to claim credits, deductions, or report a certain type of income. Here are the forms and schedules that you can fill out using our program:
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