Is it true that if you make below the poverty line, then you don’t have to file?

[jenster33]

If so, what if you’re a landlord who grossed over the poverty line but, after deductions (property taxes, HOA dues, etc) it brings you back under the poverty line? Would you still have to file?

I’ve heard there might be a $400 threshold for landlords instead of going by the poverty line?

[RayW7]

Most low-income households do not pay federal income taxes, typically because they owe no tax (as their income is lower than the standard deduction) or because tax credits offset the tax they would owe.

In 2020, you don't need to file a tax return if all of the following are true for you:

• Under age 65
• Single
• Don't have any special circumstances that require you to file (like self-employment income)
• Earn less than $12,400 (which is the 2020 standard deduction for a single taxpayer)

However, if you have rental income I would advise you to file.  

Self-employment taxes start if you earn $400 or more. Therefore you must file a tax return if you gross $400 or more. If you have business expenses that should be taken into account, do not expect the IRS to know that.

-follow these links for additional information-

Real Estate Tax and Rental Property - TurboTax Tax Tips ...

[edited 3/22/2021|1:11pst]

[jenster33]

Thanks for the info.
I just learned about the $400 limit for sole proprietors.  Can TurboTax be used to file 2018, 2019 and 2020 at the same time. I assume there’d be penalties? 

[gloriah5200]

Yes, you can use TurboTax software to file your 2018, 2019, and 2020 at the same time, but will need to have each year's software to do it because 2018 and 2019 will have to be paper filed.

Online preparation and e-filing for 2017, 2018 and 2019 is permanently closed.

To file a return for a prior tax year

If you need to prepare a return for 2017, 2018, or 2019 you can purchase and download desktop software to do it, then print, sign,  and mail the return(s)

https://turbotax.intuit.com/personal-taxes/past-years-products/

You may also want to explore purchasing the software from various retailers such as Amazon, Costco, Best Buy, Walmart, Sam’s, etc.

Remember to prepare your state return as well—if you live in a state that has a state income tax.

When you mail a tax return, you need to attach any documents showing tax withheld, such as your W-2’s or any 1099’s.  Use a mailing service that will track it, such as UPS or certified mail so you will know the IRS/state received the return.

Federal and state returns must be in separate envelopes and they are mailed to different addresses.  Read the mailing instructions that print with your tax return carefully so you mail them to the right addresses.

Note:  The desktop software you need to prepare the prior year return must be installed/downloaded to a full PC or Mac.  It cannot be used on a mobile device.

If you are getting a refund, there is not a penalty for filing past the deadline. 

If you owe taxes, the interest/penalties will be calculated by the IRS based on how much you owe and when they receive your return and payment. The IRS will bill you for this; it will not be calculated by TurboTax.

Please refer to the following link for additional information:

How to file a prior year return

[Edited 03/22/2021|7:39 pm pst]

[jenster33]

I really appreciate your detailed response. One last question. Since I’ll be late on my 2019 filing, do you have any opinion on whether or not I will be retroactively eligible for the covid stimulus checks that were issued that I didn’t receive due to not filing? 
I called the IRS multiple times to ask but it’s impossible to get through to them these days. 

[ErnieS0]

The IRS is no longer sending out checks for the first and second stimulus payments. You will have to file a 2020 income tax return to claim them, even if you normally do not file.

The missing amounts will be added to your refund as a Recovery Rebate Credit.

Not filing 2019 may also affect the timing of your third stimulus payment. The IRS is using 2020 information for the third payment. It will use 2019 information if 2020 info is not available. If the IRS does not have 2019 or 2020 info for you, then you may not get an automatic payment.

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