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Subject Author Date
Should I file return even if no tax due? nosmo_king58 02-22-2007
Posted by nosmo_king58 on February 22, 2007, 2:27 am
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 Is there any advantage/disadvantage to filing a tax return
if there is no tax due? Many years ago, I opened UTMA
accounts for my three kids. (In hindsight, that was not the
best thing to do.) Some years, their accounts earn enough
to owe taxes. This year, two of them owe tax while the
third does not. Since I have already completed the return,
should I go ahead and file a return for the third child to
"prove" to the IRS that there is no tax due?

BTW - Thanks congress for upping the age from 14 to 18 for
having to do the multiple calculations to determine if they
pay at their rate or the parent's rate. My youngest turned
14 last year, so I thought I was about through with that
hassle.

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Posted by Benjamin Yazersky CPA on February 22, 2007, 5:45 pm
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> Is there any advantage/disadvantage to filing a tax return
> if there is no tax due? Many years ago, I opened UTMA
> accounts for my three kids. (In hindsight, that was not the
> best thing to do.) Some years, their accounts earn enough
> to owe taxes. This year, two of them owe tax while the
> third does not. Since I have already completed the return,
> should I go ahead and file a return for the third child to
> "prove" to the IRS that there is no tax due?
>
> BTW - Thanks congress for upping the age from 14 to 18 for
> having to do the multiple calculations to determine if they
> pay at their rate or the parent's rate. My youngest turned
> 14 last year, so I thought I was about through with that
> hassle.

read the 1040 instructions on who has to file a tax return
you may need to file, even if you don't owe any tax then
there may be state related filing requirements

having said that, you may want to file anyway
a. starts statute of limitations
b. establishes tax liability for next year's safe harbor
regarding estimated payments & there are various other
reasons

ps-the least you could do is write your congresscritter a
thank u for extending the kiddee tax to age 18<G>

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] >>>
-----> real address on hobokeni or hobokenx <-----

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by pleasedontemailme on February 25, 2007, 12:21 am
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osmo_king58@yahoo.com wrote:

> Is there any advantage/disadvantage to filing a tax return
> if there is no tax due? Many years ago, I opened UTMA
> accounts for my three kids. (In hindsight, that was not the
> best thing to do.) Some years, their accounts earn enough
> to owe taxes. This year, two of them owe tax while the
> third does not. Since I have already completed the return,
> should I go ahead and file a return for the third child to
> "prove" to the IRS that there is no tax due?

I always tell clients that if you owe no tax this year and
cannot foresee ever owing tax again (usually retirees) then
don't file. If you owe no tax this year but reasonably
expect to owe tax in the future, file. It will just save
hassle in the long run.

-Crystal

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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