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Tax Information With A Mother's Touch Published by Eva Rosenberg, MBA, EA Volume 6, Issue 275 September 10, 2004 |
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» From: Phoenix, AZ Dear TaxMama: I was injured on the job in 2000, and have not worked a real W-2 job. I got money from my family to live on. I have not payed any tax. I attended school from March '03 until May '04 and did not work while I was in school. Should I have paid tax? My MOM is worried about I R S coming after me! Help? Barbara ![]() Hi Barbara, Tell your Mom not to worry. If you didn't earn any money, and all your money was from family helping you, you aren't legally required to file a tax return. However, I always recommend that you do - just to establish that you didn't have any tax due. That way, IRS and the State of Arizona cannot come back to you, years later, and say, Hey, Barbara, you didn't file a tax return for 2000 and 2001 - and we decided, just because we felt like it, that you owe us $10,000. How will you prove 5 or 10 or even 20 years from now, that you didn't have income then? And yes, if you don't file a tax return, they can ask you for one forever. If you do file, they can only challenge it for 3 - 6 years. So, don't worry - but do file. Good luck with your new career! Best wishes, Eva Rosenberg Your TaxMama |
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| Library of Congress - ISSN 1532-0790 Copyright © 2000-2007 - Eva Rosenberg |
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