Should i be filing taxes?

i live in Indiana and i do not have a job-so no income-but i take care of my son who gets money every month from a lawsuit settled on his behalf-he has to file taxes every year on the investments he has but i have not filed for the last 2 years since my divorce-but i have a checking account and credit cards that i pay on should i be filing taxes even though i am spending without making money technically?

I get no other money ie-child support etc. just the money he gets every month-i do not pay myself to take care of him but i wish there were some way to file to show me as HIS dependent. It is confusing at best. His tax guy told me as long as i had no income i was safe but then i think about the interest earned on savings and checking etc.

This stuff about earned money is irrelevant. There are three types of income, active and passive, both of which are taxed, and gift/inheritance, which is taxed only when it exceeds certain levels -- and reported only when it exceeds certain levels.

You mentioned nothing about your son's age, and you mentioned nothing about in whose name the accounts and credit cards are. If you are trustee for your son and the accounts and cards are in his name, what you spend on that is between you and the appointing court. The IRS gets theirs on him and the income of those accounts -- you are not directly involved.

If the accounts are in your name, and they generate interest beyond minimum reporting requirements, you have to file in your name. If the credit cards are in your name and you are using his money to pay them, you may be getting gifts from him that are then used in a manner that may even make him your dependent. There is an annual gift limit, $10K last I looked, before reporting is required (reporting, not paying), and a life-time limit before gift/inheritance taxes might kick in.

These are just points to discuss with your tax pro. It sounds like you already have one, and if the numbers you are dealing with are not especially large, it sounds like there may be nothing more to do or consider.

Hope this helps. Does not sound like much to me, but details might steer me into greater concern.

Regards,

ANY money you get/recieve/make HAS TO BE FILED!! The IRS can come after you. It sucks, but is sooo true. My finace' is an auditor. Seriously, file soon!! I would go to an accountant as soon as you can, otherwise the IRS could audit you. And regardless of weather you knew or not, cause they don't care, they are mean like that, they will file tax fraud/tax evasion suits against you. Hurry!

No! If you have NO earned income, then you do not need to file a tax return! Spending money is not a requirement for you to file a return---thank goodness for that!



EDIT: To the person who posted before me, she said that she does NOT have any earned income--her son does and there is a tax return filed every year for him! Why does she have to file when she does not have a job or any income?!

Are you being paid to take care of him?If so you need to check with a C.P.A. to be sure about it.If your just spending his money I would say no.

Do you have no earned income? No spousal support, no federal support, social security, disability, no child support? I think some of these forms of income may be taxable depending on your situation. You also may be entitled to benefits and some child deductions. Go see an accountant.

If you are the Custodian for your childs account and your child is the actual owner the account that is recorded in your name as custodian for the child you would have to report this. Regarding your checking account you should receive annually a 1099-INT from the bank which reports the amount of interest you earned in the account. This would need to be reported and you would have to file. For more information you can go to www.irs.gov/