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Tax Booklet 2008

Question: Do I need to file taxes this year?

I was a stay-at-home Mom for all of 2008…but I did receive life insurance money from the passing of my Dad and Grandmother. Since that money was taxed, does that mean I should file? I also got my Grandpa’s car when he passed away in 2008 (sad year, I know). Since I pay personal property tax on that vehicle…is that something that I need to consider as well?
And if I am supposed to pay taxes based on what I have received…does that mean I can claim my daughter as a dependent since she was born January of 2008?
Thank you anyone that can help. I’ve only had to worry about filing from employment, I have no idea how everything else works!

Btw…I thought about asking this question when I received Federal and State tax booklets in the mail, even though I was unemployed all year.

Answer: You got the tax booklets based on how you filed last year. The IRS is unaware, yet, that you had no income.

By the way, unless there was some interest income on the payment of the life insurance policies, it was not taxable to you. (That is, $10,000 face and you got $10,100, only the $100 is income.)

So…add up your actual income for the year. If it’s less than $8950, you don’t have a filing requirment. (You wouldn’t owe income tax until it got past at least $11,500.)

GMC Yukon – Kelley Blue Book