Who is off the taxpaying hook?

[Chex]

Do you have to file a tax return? Maybe not.

While the Internal Revenue Service gets around 140 million returns a year, millions of Americans are exempt from this annual duty.

Before you wish you were among that group, however, take a look at just who typically does not have to file a 1040. http://finance.yahoo.com/news/who-is...190255976.html

Why the decrease? TPC analysts cite two key reasons, and one key reason why the people have a reason, both related to the economy.
First, the recession meant a lot of individuals didn't earn enough to file a return.

Second, to help those struggling in the recession, the president proposed and Congress agreed to stimulus measures that reduced their taxes.

Third they followed the law. Private Credit vs. Lawful Money.


More from Bankrate:
• Who has to file taxes?
• Choosing a tax filing status
• States with no income tax

View Comments (913)

[Anthony Joseph]

who is claiming i owe a debt?

[JohnnyCash]

I'm off the hook, although on its face you'd think I would owe:
http://jesse2012.com/my109912.jpg

Thankfully I discovered Redeeming Lawful Money!

[salsero]

I'm off the hook, although on its face you'd think I would owe:
http://jesse2012.com/my109912.jpg

Thankfully I discovered Redeeming Lawful Money!

I do not want to presume - you did not pay any taxes, including FICA TAXES on the 2012 1099-MISC?
You simply redeemed lawful money on all checks relating to the total $79073? And this automatically includes not only federal income taxes but also social security and medicare taxes as well?
If this is the case, may I ask how did you back out the L56 - Self Employment taxes out of the 1040?

[JohnnyCash]

I did not pay any federal income tax, social security tax nor Medicare tax on the 2012 1099-MISC reported amount; nothing withheld, nothing paid. Full amount billed, full amount paid. I simply redeemed lawful money on all checks related to the total $79k. No obligation to file, no 1040 filed. Perhaps you're thinking, it cain't be this easy. Well I'm here to tell you it is. No income taxes paid since 2007.

[salsero]

I did not pay any federal income tax, social security tax nor Medicare tax on the 2012 1099-MISC reported amount; nothing withheld, nothing paid. Full amount billed, full amount paid. I simply redeemed lawful money on all checks related to the total $79k. No obligation to file, no 1040 filed. Perhaps you're thinking, it cain't be this easy. Well I'm here to tell you it is. No income taxes paid since 2007.

So in other words you did not file ANY 1040, even though you received a 1099-MISC for 2012? Thank you for the audio - but it really answered nothing except about listening to a webinar.

Have you ever sent notice to the IRS that you only redeem lawful money?

If any 1099 or W-2 is issued and you, the taxpayer does not "voluntarily" submit the "accounting and pay whatever tax is due", you will be sent a letter of demand from the IRS. Please explain further.

[Anthony Joseph]

"non-employee compensation"

nothing wrong with that, on its own

[shikamaru]

Earning income is a presumption of taxes owed.

Possessing insurance ...
Having a bank account ...
... as well as other indices are presumed evidence of income and a debt owed to government as well.

[Michael Joseph]

Earning income is a presumption of taxes owed.

A Presumption of a benefit passed - or an exchange or transfer of an estate. Thus the trustee is required to give account. The presumption is of course valid for one may make demands for lawful money at one time and not at another. Thus always with the presumption of liability.

[Anthony Joseph]

if one requires a verifiable claim of a debt due, on the record under oath or affirmation, then said presumptions can just be mistakes requiring correction