The above income levels for a married couple filing joint return are not applicable if, at the close of their tax year,the couple does not share the same household or if some other taxpayer is entitled to to a dependency exemption for either spouse (e.g a married student who supported by a parent).In such a case , a return for 1999 must be filed if gross income equals $2,750 or more

With respect to dependent child or other individual who is either blind nor age 65 or older for whom a dependency exemption is allowed to another taxpayer,a return must be filed for the 1999 tax year if the individual

1. Has over $700 of unearned income ,
2. Has over $4,300 of earned income or
3. Has a total of unearned income and earned income which exceeds the larger of,
   • $700
   • earned income(upto $4050) plus $250

All married dependents under age 65 with gross income of atleast $5 whose spouse files a separate return on form 1040 and itemizes deductions must file a return.

If a child under age 14 had no earned income ,received unearned income(interest and dividends ,including Alaska Permanent Fund dividends) in an amount less than $7,000, as indexed for inflation that was not subject to backup withholding,and made no estimated tax payments,the parents may elect to report the income on their return,If this election is made,the child need not file a return.

Dependents who are blind and/or age 65 or older must file returns if

1. Their Earned income exceeds their maximum standard deduction amount,
2. They have unearned income in excess of sum of $700 plus additional standard deduction amounts to which they are entitled,or
3. Their gross income exceds the total of earned income up to the regular standard deduction amount or $700, whichever is larger,plus the applicable additional standard deduction amounts.

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Even if the income levels noted above are not reached,an individual is required to file a return if

1. Net earnings from self-employment in 1999 are atleast $400,
2. Advance earned income credit payments were received during 1999.

Federal, state and local governments in the USA are tremendous, and taxes fuel the fires. Taxes come in the form of(federal, state and local)Social Security,(FICA) taxes, property taxes, sales taxes and gift and estate taxes.

Many newcomers to the USA are unfamiliar with the system of taxation in this country, and the long arm of the U.S. tax collector may unpleasantly surprise them.

If you spend at least 180 days of the calendar year in the USA, regardless of your visa standing, you may be subject to federal, state and local taxes. But there are many caveats to the rules. You may want to seek a professional adviser to help you understand your situation.

Keep in mind that even though you now live in the USA you may still owe taxes in your home country. For example, the United Kingdom requires that you pay taxes if over a three-year period you spend more than 90 days a year in the UK. Remember, the rules are complicated and change often, and a professional can help you best

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The Internal Revenue Service, or IRS, with more than 110,000 employees and 600 offices, is the largest law-enforcement agency in the USA. It exists to make sure people pay their required federal taxes.

Compliance to IRS tax laws is based on the honor system. But if the IRS suspects you didn't pay enough, you may face an audit or, as the IRS prefers to call it, an examination. Whatever term you use, the thought of the IRS probing into private financial affairs inspires fear and loathing for most Americans. The IRS audits a small number of taxpayers at random, but most investigations are a result of red flags. For example, the IRS will be suspicious of people who claim a high percentage of deductions in proportion to their income. While your chances of being audited in any one year is only about 1 percent, the odds of an IRS examination in your lifetime are higher.

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Filing Your Return

The tax year for most taxpayers is from Jan. 1 to Dec. 31. Generally, the IRS requires that you file a tax return by April 15 of each year unless you request an extension in writing. Some years, however, the deadline will change slightly because April 15 is on a weekend. Save and categorize all of your deductions throughout the year so you will be organized and ready to file when the time comes.

Keep in mind that the IRS is the federal tax gatherer. You will also likely need to fill out forms for state taxes, usually based on the federal tax form, but simpler and shorter.

You can get all the forms you need from a tax professional or from the post office or public library. Everyone must file the basic tax form

Adjustments - Amounts deducted from the gross income of an individual taxpayer in arriving at adjusted gross income; includes contributions to individual retirement plans and alimony paid.

Deductions - Expenses such as interest on a mortgage or contributions to charity that reduce your taxable income. Taxpayers who have few deductions may take the standard deduction and fill out a simpler form. Others itemize, or list, their deductions in order to lower their taxes.

Credits - Expenses such as childcare that significantly lower your taxable income. Unlike deductions, each credit dollar lowers your taxes by one dollar.

Be sure the information on your completed form is accurate. Filing incorrectly may bring heavy penalties. As well, tax evaders, people who avoid paying taxes by hiding or misrepresenting financial transactions, are not viewed fondly by the IRS. Significant penalties and even jail sentences can result.

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