Tax Questions
 

Do I have to pay income tax?

Depending on your circumstances, you may or may not have to pay income tax. In order to establish if you have to pay income tax or not, you first have to establish if you have to file income tax return to the IRS and your state or local governments or not.

Do I have to file income tax return?

If you are not required to file an income tax return then you will not have to pay income tax. See Do I need to file a tax return?

If your tax filing status is
AND at the end of 2007 you were..
Then file a tax return if your gross income were at least...
Single under 65 $8,750
65 or older $10,050
Married filing jointly under 65 (both spouses) $17,500
65 or older (one spouse) $18,550
65 or older (both spouses) $19,600
Married filing separately any age $3,400
Head of household under 65 $11,250
65 or older $12,550
Qualifying widow(er) with dependent Child under 65 $14,100
65 or older $15,150


If your income level is below the third column for your tax filing status then you are not required to file income tax return and will not have to pay income tax unless you also fall under other rules for filing requirements (discussed later).

Do I always have to pay income tax if I am required to file a tax return?

If you are required to file a tax return, you do not necessarily owe taxes. Sometimes the IRS owes you money in tax refund. You may have tax credits to claim or tax deductions that reduce your tax liability to zero. In which case, you will not have to pay income tax. You tax return will figure out if you have to pay income tax or you will be given a tax refund by the IRS.