Okay...for reasons I won't bore you with, we haven't filed a tax return since 2006! I am now trying to locate all the necessary paperwork to file all returns. My question...Is there a certain amount allowed before taxes would be accessed? For example: Married, filing jointly, self-employed, gross income less than $25,000 in 2006. Somebody told my husband we wouldn't owe any taxes for that year, so there would be no need in finding all the receipts for deductions. ======>>>>>>>.I do niot think so;basically, a form of taxes that you, as a self-employer , must pay based on your net earnings from self-employment. You must pay self-employment tax and file Sch SE of Form 1040 if your net earnings on line 29/31 on Sch C from self-employment were $400 or more.also,
If you are filing as a sole proprietor and/or a self-employer, then, you generally have to make estimated tax payments, 4 times va year, quarterly basis, if you expect to owe tax of $1k or more when you file your return.however, You do not have to pay estimated tax for the current year if you had no tax liability for the prior year; You were a U.S. citizen or resident for the whole year; Your prior tax year covered a 12 month period.
Are there "tax tables" or something for each year showing how much we were allowed to make before being taxed? =====>>>>>yes;you are entitled to claim a personal/depedent exemption for yourselves and any dependents you support. The personal exemption acts just like a tax deduction: it reduces your taxable income, so you end up paying taxes on less income.The personal exemption amount is indexed annually for inflation. Personal exemption for 2006 was $3.3k. Choosing the right tax deductions is a key element of preparing your federal tax return. When preparing your tax return, you will be able to choose between itemizing deductions on sch A of 1040 or taking the standard deduction.Some tax deductions and all tax credits may be claimed regardless of whether you itemize deductions or not. Many deductions, however, must be itemized. The standard deduction is a dollar amount that reduces the amount of your taxable income. You cannot claim the standard deduction if you claim itemized deductions on your return.
The standard deduction amounts for any given tax year are based on filing status. year for inflation.
For 2014, the standard deduction for taxpayers younger than 65
Head of household $9,100
Married filing jointly $12,400
Qualifying widow or widower $12,400
Married filing separately $6,200
You may visit the website here for more info; Federal Withholding Tax Tables -IRS Tax Tables, Tax Rates