Q: I withdrew $350.00 from an IRA. Can I use the 1040EZ or do I need to use the 1040?

A: If you have a filing requirement, you will have to use either Form 1040A or Form 1040 to report the IRA distribution.

Q: If someone dies two weeks into the next tax year, can his income be included with his current tax year's federal tax return?

A: No. You may not combine the second year income with the prior year. The current year's tax return should only contain the current year's income.

Q: My only income is social security disability. I own my own home and pay school and property taxes. Am I entitled to a tax refund?

A: There are no federal income tax benefits available to you. In fact, there is no need to even file a federal tax return.

You will have to check with your state tax authority. Many states have refundable tax credits and/or rebates for either the elderly, those with income below certain thresholds and those who pay property taxes.

Q: I have not yet filed my last year's taxes. How much trouble am I in?

A: If you owe additional tax you will probably have a failure to file and a failure to pay penalty plus interest. There are no penalties on refund due returns. However, if you are due refunds you only have three years from the due date of the return to file and claim the refund.

Prior year forms and instructions are available at http://www.irs.gov/formspubs/article/0,,id=98339,00.html

Q: My Mother has been told by both the IRS and a tax adviser that she didn't have to file returns. Consequently, since her income has been the same, she has not filed a return for a few years.
I've never heard that anyone was exempt from filing a tax return, and would like to know if this is true.

A: Yes it may be possible. Whether you have to file is a function of your taxable gross income, filing status, whether you are at least age 65, whether you are someone's dependent and whether you have self-employment income. You can find the actual filing requirements in IRS Pub 501 under the heading "Who Must File." Here's the link:
http://www.irs.gov/publications/p501/ar02.html

Q: I am retired collecting Social Security benefits. I have other income and it is possible that some of my benefits will be taxed. Which form do I need to use?

A: Forms 1040 and 1040A are the only two forms that have a line where you can report taxable social security. The instructions for both those forms have a worksheet that you may use to calculate taxable social security.

Q: My mother is 90 years old, collects social security and has a small amount from interest and a survivor benefit pension. Does she need to file a return?

A: Whether or not she has to file depends upon her filing status and the amount of taxable gross income. The filing requirements for a tax year are identified in IRS Pub 501 and any one of the income tax instruction booklets (1040, 1040A, 1040EZ) for that tax year. These documents contain a simple chart that she can use to see if she has to file.

Q: We are married and both over age 65. We only have pensions and dividends, what tax form do we use ?

A: Anyone may always use Form 1040. If your taxable income is less then $100,000 and you are not itemizing deductions you may also use Form 1040A. See the instructions regarding which adjustments and credits can be taken on Form 1040A. You cannot use Form 1040EZ because of your ages.

Q: My parents are in a nursing home and no longer capable of understanding the tax forms. I have a durable power of attorney for both. May I sign the tax forms and if so, what is the procedure?

A: Yes, you may complete their tax return(s) and sign the return for both of them. On the signature line for each of them, you sign your own name followed by the words "attorney-in-fact."

A copy of the POA must accompany the return(s) for the first year you do this.

Q: My daughter works as a nanny for cash. No taxes are withheld as she is an independent contractor. Which form does she need to fill out.

A: She will have to use Form 1040. Her business income and any business expense deductions are reported on either Schedule C or C-EZ. She can use the C-EZ if her expenses are $5000 or less and she has a net profit from her business.
She will also need to use Schedule SE (Self-Employment Tax) to compute and report her social security and Medicare tax if her net earnings are at least $400.

Q: My mother is 66 years old. She has been self-employed as a housekeeper for 10 years. She never made more than $5,000 per year. She did not file federal income taxes. Can she file taxes for the past 10 years?

A: As she has never filed tax returns, there is no statute of limitations that would prevent the IRS from filing a notice of assessment. Yes she can and should file her tax returns for the missing years. She should have filed every year that her net earnings from self employment (income less business expenses) was at least $400.00. She may not owe any income tax but she would owe self employment tax (social security & medicare) for any year that her net income was at least $433.12.

There may also be a penalty for late filing and one for late payment of tax plus interest.

Q: My only source of income is Social Security. I do not have to file a return. Am I eligible for a check under the 2009 Stimulus Package and if so, how much is it, when can I apply and where do I apply? Thank you,

A: The 2009 stimulus package payments to recipients of Social Security will be made directly by the Social Security Administration.

The following information is posted on an SSA web page (http://www.ssa.gov/payment/):

"On May 7, 2009, the federal government issued the first economic recovery payments to people receiving Social Security and Supplemental Security Income (SSI) benefits. The payments are being issued on a staggered basis throughout the month of May. Please do not contact us unless you have not received your payment by June 4, 2009.

In February, President Obama signed the American Recovery and Reinvestment Act of 2009. This act provides for the one-time payment of $250 to more than 50 million individuals who get Social Security and SSI benefits.

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For more information see our Frequently Asked Questions."

If you go to the internet link referenced above, you will find the link to Frequently Asked Questions.

Q: I am a single parent going to college. I receive child support for my 10 year old child who lives with me. I have no other income. Are there any tax benefits available to me if I file a tax return?

A: You do not have any taxable income nor do you have any earned income. You are not eligible for any federal tax benefits. There is no requirement to file a tax return.

You may want to check with your state tax authorities to see if they may have some benefit available to you.