file taxes if made under 600.00?

IRS does not bother people to file their tax especially if they are due a refund. The more tax payers forget their tax refund, the better good for the treasury dept.

However, if you owe any penny you should file your tax on time before the last day of filing April 15.

If you are expecting a refund and you failed to file within 3 years, your refund will be forfeit it by IRS.

If you owe and fail to pay, you shall pay and there is no 3 years limitation.

Some times, the tax payer expect little or much refund when filing return. If not filing, this entitlements will be ignored. Therefore, it is recomended to file the income of your granddaughter since she earned more than 400 dollars. Read the following.

Also, if someone from your granddaughter family plan to claim her on their tax return, she must file her return as she must check YES on question 6 of her tax return.

To determine if you need to file a Federal Income Tax return for 2010 answer the following questions:

Were you self-employed with earnings of more than $400.00?

Occasionally, individuals have one-time or infrequent financial transactions that may require them to file a Federal Income Tax return. Do any of the following examples apply to you?

Did you have Federal taxes withheld from your pension and wages for this tax year and wish to get a refund back?

Are you entitled to the Earned Income Tax Credit or did you receive Advance Earned Income Credit for this tax year?

Will you owe any special tax on a qualified retirement plan (including an individual retirement account (IRA) or medical savings account (MSA)? You may owe tax if you:

Received an early distribution from a qualified plan

Made excess contributions to your IRA or MSA

Were born before July 1, 1939, and you did not take the minimum required distribution from your qualified retirement plan.

Received a distribution in the excess of $160,000 from a qualified retirement plan.

Will you owe social security and Medicare tax on tips you did not report to your employer?

Will you owe uncollected social security and Medicare or Railroad retirement (RRTA) tax on tips you reported to your employer?

Will you be subject to Alternative Minimum Tax (AMT)? (The tax law gives special treatment to some kinds of income and allows special deductions and credit for some kinds of expenses.)

Will you owe recapture tax?

Are you a church employee with income in wages of $108.28 or more from a church or qualified church-controlled organization that is exempt from employer social security or Medicare taxes?

Do one or more of the preceding situations apply to your filing requirements?

If she got a 1099 Misc form, with the amount $600 on box 7, she has to file a return:

Forms which she needs are : 1040, schedule C-EZ, schedule SE , she won't owe income tax that means on line 44 of 1040 is zero. She could not get the MWPC, because she might be claimed as dependent.

On schedule SE:

Line 2; line 3 = 600

600 x 0.9235 = 554 ( line 4) and enter this # on line 12 of 1040 also

554 x .153 = 85 ( line 5). This is the SE taxes, enter this # on line 56 of 1040

85/2 = 43 , this is haft of SE tax, enter this # on line 27 of 1040.

On form 1040:

600 - 85 = 515, this is her AGI

515 - ( 5,700 + 3,650 ) = 0, no taxable income, therefore no tax liability. She only owes SE taxes : $85.00.

If she got a W-2, she would not need to file.

If she made $400 in self employment, YES

If she made $500 in wages, NO

However she may want to file for a refund of the withholding for FIT and SIT

www.irs.gov Do I have to file?

She does not have to file. (most likely) (earned income < $5700)

She should file if Social Security and Medicare were not withheld so she can get credit for the work.

She should file if she had any tax withheld from her salary.

She should file if she is eligible for Earned Income Credit.

She should file if she is eligible for the Making Work Pay Credit.

She should file just for practice - using one of the free online services.

From a W-2, no.

From self-employment, yes.

if she had income tax withheld she would want to to get that refunded