Is there a Income tax return form for unemployed people?

Question

My friend has been required to file her taxes, even though she has no job. Her only source of income is a partial pension payment from her ex-husband from the military. She doesn't know how to report this.

I need to know asap. Will give ten points to the best answer. Thanks!

Answer 1

My mom receives the same thing, and yes, she still has to file.  You haven't said whether or not she has her form 1099-R.  This form not only would report her Gross Distribution, but her Taxable Distribution as well.  These can be two different amounts.  

If she doesn't have access to this form, she can contact her local IRS office, and request Wage and Income Transcripts for that year, which will show all of the items that were reported to the IRS.  This would also make sure you pick up any Interest Income or other small amounts she might not realize she has.

You can find a local office here:

http://www.irs.gov/localcontacts/index.h...

I'm not 100% sure if there's a fee for these or not, since they're different than Account Transcripts, which are free.  If so, it's not much.

Also, if she has mortgage interest (which would also show on a Wage & Income Transcript), make sure to look into taking any other itemized deductions she might have.  The IRS doesn't receive information regarding property taxes, charitable contributions, etc.  So, even if she has to file, if she's able to itemize, she still might not actually owe anything.

Once you have all the information, you should be able to follow the prompts in Turbo Tax.  Also, if she's in CA, there's a good chance she needs to be filing a CA Income Tax Return as well, so make sure you look into doing that.

Hope this helps!!

Answer 2

Other responders have suggested the correct form to use .

When you say your friend has been required to file her taxes do you mean that the tax collector has written requesting this? Has she not submitted returns for a number of years? If so, probably an accountant or tax agent will be her best recourse.  

Answer 3

First of all where are you from?  If you are in Ontario, Canada such as myself your friend would only have to file taxes if his or her income is above $3500/year (which I assume it is)  In that case your friend would simply have to go to a local post office and obtain a T3 slip.  That is the general income tax form for Canadians.

Answer 4

Who is requiring her to file a tax return?  She only needs to file if her income exceeds the filing requirement amount for her filing status.  That was $8,750 for 2007 and $8,450 for 2006 assuming that she's single and under age 66.

Military pension splits are reported on Form 1099-R so the IRS will know about the payments she receives.  If she needs to file, she can file either Form 1040 or 1040-A to report that income.  

If you're using TT to prepare her returns it can handle her situation.  Just start a new return and step through the preparation process.  When it asks if she has received any income from a retirement plan, say 'Yes' and follow the prompts.

Answer 5

We all know about the 10 points.

She should file using a form 1040.  

Answer 6

Depents on how "meager" the pension is.  If it's under $8750, or maybe a little more if she's 65 or over, and her only other income is social security, then she wouldn't be required to file.

If she is required to, she'd use the same forms as anyone else - 1040A or 1040.  You can't use 1040EZ for pension income.

If she wasn't required to file for 2007 but is getting social security, she probably got forms in the mail to file so she could get a stimulus payment of $300 if her ss is at least $3000 for 2007

Answer 7

WHO is requiring this?

If it is a social agency, for benefits for example, OK, go ahead an use turbo tax to prepare a return (she might even get some stimulus payment for 2007's return) on 1040 or 1040A. Easy 300 if she qualifies.

IF it is the IRS (or California) that is requesting it, then they have some information that indicates that she made more than a minimal amount she is telling you. For example, did she sell a house, or was her house foreclosed? Did she sell stocks or bonds? Withdraw money from a 401(k) or IRA? Etc. Before you prepare her tax, get the whole story.

Answer 8

A person with income other than from wages uses the same tax forms as a person who has income from wages.

A pension is income subject to tax.  This income is the reason your friend has to file an income tax return.  The tax form your friend needs is Form 1040A or Form 1040.  Pension income has a separate line on each of these tax forms.  

Your friend will receive a tax document, Form 1099R, showing the amount of pension received.  Enter this data into your tax program when it asks if there is any retirement income.    

Answer 9

For federal, it's 1040A.  If she's getting a 1099-R from a pension, she uses the pension line.