Question
If a couple is still married and residing together can they file separate tax returns?
Answer
Yes they can file married separate however they both will be required to include the separte spouses name and social security number on their own return and choose the filing status “Married Fining Separate”.
Question
Can a taxpayer claiming a dependency exemption for a qualifying relative if the relative’s gross income is greater than than the amount of the personal exemption amount for the year?
Answer
No, in order to be claimed as a qualifying relative by a taxpayer the relative’s gross Income must be less than the current tax years personal exemption amount ($4,050 for 2016)
Question
Who Must File an Individual Tax Return?
Answer
The filing threshold for most individuals is the sum of the applicable exemption ($4,050 for 2016) amount plus the applicable standard deduction ($6,300 single for 2016) amount for the tax year for W2 income ?
Question
If my 1099 income is less than the current year standard deduction and exemption am I still exempt from filing a tax return ?
Answer
No because unless you file a tax return claiming the deductions and any additional exemptions the IRS may and probably will at some point (depending upon the 1099 income amount) send you a computer generated IRS filed tax return assigning you at least the SE Tax (self employment tax 15.3%) plus non filing penalties and interest. They do not know about your allowable deductions unless you file but if you received a 1099 so did their computer.