My dad (non-custodial parent) didn’t file taxes for 2016 since he didn’t meet the threshold of 10,000 for filing taxes and had no other reason to do so. I’m wondering if this will pose a problem in the future when colleges request proof of finances and other verification materials.
I think the colleges will ask for a non-filer statement, you may as well ask him to submit a 4506-T.
@BelknapPoint is the threshold for filing taxes $10,000? I thought it was lower.
@involutex was this income earned at a job…with a w-2 form?
For tax year 2016, the threshold for a single taxpayer under age 65 claiming their own exemption needing to file a tax return was gross income of $10,350, which is based on a standard deduction of $6,300 combined with a personal exemption of $4,050.
Ah…thank you @BelknapPoint
But if this parent was self employed…that would be different…wouldn’t it?
Yes, generally the obligation to pay self-employment tax begins at around $433 of net profit from a farm or business.
He doesn’t have any W-2 Forms since he’s been freelancing any jobs he could get, so I’m not sure if that counts as self-employment. He’s almost always paid in cash. How would we go about proving this income? @thumper1
If he is a self employed freelancer…he is supposed to keep track of his earnings. He might have received 1099s from some folks with whom he contracts. Getting paid cash would also be reported…it’s not like that doesn’t count.
If he is a self employed freelancer, I believe he was required to file a tax return in 2016 per @BelknapPoint amount of earnings above about $400. Required,…not optional.
Would it be too late for him to fix the situation?
In my opinion, he needs to file a 2016 tax return.
@BelknapPoint what do you think?