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Old 02-28-2012, 11:44 AM   #41
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Heck, after looking, it is in the first sentence...

"Gross income
means all income you received in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it).

It does not say all income received after expenses.... but ALL income..

It goes on to give some examples for you. Just because they did not give real estate as an example does not mean you can forget out it.

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Old 02-28-2012, 11:54 AM   #42
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IMHO, when in doubt file. The OP may have no tax due but at least there will be no risk of them coming back at him for failure to file. That inevitably happens when the taxpayer is in the weakest position to defend themselves.

One of my former co-workers marred late in life, her husband died soon after and then she learned that he hadn't filed tax returns for several years before their marriage. IRS tied up his estate for several years while she reconstructed the returns he should have filed. He had tossed his records because he didn't think he needed them.
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Old 02-28-2012, 07:50 PM   #43
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Quote:
Originally Posted by kaneohe View Post
Thanks for the link....didn't know about that slick flow chart. I believe
you must have answered yes to the dependent question to get the $950?
+1 on the nice detective work. The difference in the answers doesn't even make sense (to me). Mistake in the software?
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Old 02-28-2012, 09:33 PM   #44
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Quote:
Originally Posted by Free To Canoe View Post
+1 on the nice detective work. The difference in the answers doesn't even make sense (to me). Mistake in the software?
No mistake.....comes from the chart on p. A2 of pub 4012 part of which says:

Chart B For Children and Other Dependents
If your parent (or someone else) can claim you as a dependent, use this chart to see if you must file
a return.
In this chart, unearned income includes taxable interest, ordinary dividends, and capital gain
distributions. It also includes unemployment compensation, taxable social security benefits, pensions,
annuities, and distributions of unearned income from a trust. Earned income includes salaries, wages,
tips, professional fees, and taxable scholarship and fellowship grants. Gross income is the total of
your unearned and earned income.
Single dependants. Were you either age 65 or older or blind?
□ No. You must file a return if any of the following apply.
1. Your unearned income was over $950.
2. Your earned income was over $5,800.
3. Your gross income was more than the larger of
a. $950, or
b. Your earned income (up to $5,500) plus $300.
..............................................

If you had only read the chart on the earlier p. A1, you could easily have
gotten the idea that $9500 was the threshold. I don't believe that chart makes any notes that you need to see the chart on the next pg if you are
a dependent which has a lower threshold for filing.......so sometimes (often?) you can get in trouble by only reading until you think you see the answer. Sometimes (often?) you have continue reading the paragraph/page/section /chapter until you are pretty sure you have the answer since earlier generalizations may be qualified by other conditions.
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Old 02-29-2012, 07:31 PM   #45
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Quote:
Originally Posted by kaneohe View Post
No mistake.....comes from the chart on p. A2 of pub 4012 part of which says:

Chart B For Children and Other Dependents
If your parent (or someone else) can claim you as a dependent, use this chart to see if you must file
a return.
In this chart, unearned income includes taxable interest, ordinary dividends, and capital gain
distributions. It also includes unemployment compensation, taxable social security benefits, pensions,
annuities, and distributions of unearned income from a trust. Earned income includes salaries, wages,
tips, professional fees, and taxable scholarship and fellowship grants. Gross income is the total of
your unearned and earned income.
Single dependants. Were you either age 65 or older or blind?
□ No. You must file a return if any of the following apply.
1. Your unearned income was over $950.
2. Your earned income was over $5,800.
3. Your gross income was more than the larger of
a. $950, or
b. Your earned income (up to $5,500) plus $300.
..............................................

If you had only read the chart on the earlier p. A1, you could easily have
gotten the idea that $9500 was the threshold. I don't believe that chart makes any notes that you need to see the chart on the next pg if you are
a dependent which has a lower threshold for filing.......so sometimes (often?) you can get in trouble by only reading until you think you see the answer. Sometimes (often?) you have continue reading the paragraph/page/section /chapter until you are pretty sure you have the answer since earlier generalizations may be qualified by other conditions.
Thanks!
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Old 03-09-2012, 03:36 PM   #46
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Hello everyone. Thanks for all the Iinformation. You all are a wealth of knowledge. I am looking to "initiate" doing my taxes first and see how it looks. If it doesn't seem too complicated, I will complete it, if not, I will find some one to do it for me.

Sorry for The delay. I didn't realized I had so many replies.

Last note. I talked to my bank and they opened my heloc again so the first thing I did was pay off the 4 cc's with ugly limits.

I feel so relieved and now I Have:

UNCLE SAM. @7%
Military account @9.99%

Both in good stand and uncle SAM isn't on my credit report and the account is in good standing
Whew!
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