Members of the Maryland Association of Certified Public...

Tax answers

March 29, 1996

Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.

Q: Is a single dependent taxpayer required to file if there is no federal tax withheld and wages totaled $2,025? What about with the state? Also, will she be required to file Form 8606 when she opens an IRA?

A: For federal income tax purposes, a single dependent taxpayer who is not 65 year or older, or blind must file if:

a) her unearned income (interest, dividends) was $1 or more and the total of that income plus earned income was over $650; or

b) her unearned income was $0 and earned income was over $3,900.

For Maryland, single dependent taxpayers under 65 must file state returns if their Maryland gross income (federal total plus any Maryland income additions, minus any Maryland subtractions) equals or exceeds $6,250. In this case, she would not be required to file any federal or state income tax returns.

Federal Form 8606 is required only if a non-deductible contribution is made to an IRA or if an IRA distribution is received and you have previously made non-deductible contributions to any of your IRAs. Only if either of these conditions exist would a Form 8606 filing be necessary.

The above advice is for general purposes only and is not intended as legal, accounting or tax advice. Specific situations may vary.

Members of the Maryland Association of Certified Public Accountants will answer selected tax questions from readers until April 15. To ask a tax question, call Sundial, The Sun's telephone information service, at (410) 783-1800. Using a touch-tone phone, enter 6225 after you hear the greeting. Please leave your name and phone number in case a question needs clarification; names and numbers will not be published. No questions will be answered by phone.

Pub Date: 3/29/96

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