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Old 08-07-2013, 01:13 PM
 
Location: pacific northwest
419 posts, read 564,378 times
Reputation: 271

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Probably most won't respond but here is my question. Could a couple who paid off their home within the last 2 years - a newer home; owns 2 new vehicles and buys and sells boats not even file income tax returns. Constantly upgrading and remodeling their home and yet never file income tax. No, they have no family money. He is retired law enforcement; she worked as a ceramic teacher - assuming that she was paid under the table and never claimed income from that.

I guess I am nave but I always thought that only very poor people did not have to file returns. What am I missing here to make this scenario ok.
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Old 08-07-2013, 01:42 PM
 
Location: Great State of Texas
86,093 posts, read 72,525,560 times
Reputation: 27566
Do You Need to File a Federal Income Tax Return?

Nice interactive "Do I" with a few screens of questions.
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Old 08-07-2013, 01:50 PM
 
29,782 posts, read 34,876,173 times
Reputation: 11705
Quote:
Originally Posted by pnwretired View Post
Probably most won't respond but here is my question. Could a couple who paid off their home within the last 2 years - a newer home; owns 2 new vehicles and buys and sells boats not even file income tax returns. Constantly upgrading and remodeling their home and yet never file income tax. No, they have no family money. He is retired law enforcement; she worked as a ceramic teacher - assuming that she was paid under the table and never claimed income from that.

I guess I am nave but I always thought that only very poor people did not have to file returns. What am I missing here to make this scenario ok.
What you are missing is knowing all their real financial information.
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Old 08-07-2013, 02:01 PM
 
Location: SW MO
23,605 posts, read 31,492,863 times
Reputation: 29076
Without restating the obvious, who cares? If she's working or worked under the table they're obviously willing to cheat the government so his LE background and pension notwithstanding, bending the rules obviously isn't beneath either of them so I don't doubt they've found a way to weasel out of what they owe.
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Old 08-07-2013, 02:01 PM
 
Location: Wisconsin
21,541 posts, read 44,018,537 times
Reputation: 15150
This couple has been discussed on the other threads, where you'd brought them up previously.

http://www.city-data.com/forum/28151260-post77.html

http://www.city-data.com/forum/30581287-post14.html

and elsewhere.

If they are relatively young and not complying with the law, sooner or later the IRS will catch up with them.
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Old 08-07-2013, 02:05 PM
 
Location: Bella Vista, Ark
71,968 posts, read 83,656,005 times
Reputation: 41778
It might sound to you like they should be filing and at first glance I agree, but you don't know the entire story. There could be expensive they have that brings the net income down far enough they do not have to pay. As for her being paid under the table, millions of people have jobs like that and if she only teachers a couple of classes a week, I doubt she is making enough to make a huge difference. If they are indeed cheating the government, shame of them.
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Old 08-07-2013, 02:21 PM
 
Location: pacific northwest
419 posts, read 564,378 times
Reputation: 271
I know the entire story. They have no other income except his pension and Social security (but not much social security)- by the way this guy has been retired since his late 50's with no disability that I can see. They are seniors. In their 70's. She no longer works under the table. She doesn't work at all. I think they make close to $50K a year with his pension and SS. She gets very little SS and understand that since she draws it from her husband and never paid into it. Guess from all the replies - probably more than them are abusing the system. Oh, and yes I have reported them. But, you know the IRS they are not going to go after them........
-

Last edited by earlyretirement; 08-07-2013 at 03:29 PM.. Reason: Edited to remove off topic comments.
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Old 08-07-2013, 02:33 PM
 
Location: pacific northwest
419 posts, read 564,378 times
Reputation: 271
Thanks to all who did respond. Guess I did my part and reported them but not holding my breath for anything to happen. It just galls me that we pay so much in taxes and they are living very, very well due to the fact they don't pay federal tax. We are in a no state tax so they pay no state tax either. Guess Karma will be in their future as that always happens in life - Karma that is.

Last edited by earlyretirement; 08-07-2013 at 03:29 PM.. Reason: Edited to remove off topic comments and personal attacks on CD member
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Old 08-07-2013, 02:33 PM
 
Location: SW MO
23,605 posts, read 31,492,863 times
Reputation: 29076
So what's the issue and why do they concern you? Are you related? Does their issue somehow or other affect your day-to-day life?

By the way, I, too, seem to remember this scenario. Want to laugh at me? Is this, perhaps, a former husband?

Last edited by Curmudgeon; 08-07-2013 at 03:32 PM..
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Old 08-07-2013, 02:36 PM
 
4,787 posts, read 9,303,592 times
Reputation: 12632
This is another IRS fact sheet. it's an older one, but it's very good at explaining who has to file.

Based upon the info you've provided, either they legally don't have to file at all, or can get enough deductions, etc. to keep them below filing status.

Are Your Social Security Benefits Taxable?
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