If the applicant fails to check a response as to whether or not an income tax return was filed, an individual inquiry must be made by the local Tax Credit employee. It is incorrect to assume that no income tax return was filed simply because the applicant may be elderly and has listed only Social Security benefits as the source of income. The local employee must request a copy of the income tax return from any applicant who filed with the Internal Revenue Service but did not provide a copy with the tax credit application. Form letter HTC-2A is provided to inquire as to whether or not an applicant filed a federal tax return.

The question arises as to what level of income is a person required to file a federal income tax return. The requirement varies by age and circumstances, and the table below shows the income levels which must be reached before a federal return is required. Local Tax Credit employees should keep in mind that these amounts do not include such nontaxable items as Social Security or Railroad Retirement benefits, inheritance and insurance proceeds. If an applicant was required to file a federal tax return but did not do so, the local employee may not proceed with the processing of the application until the applicant has corrected the situation by filing a late return with the Internal Revenue Service. Form letter HTC-2B is provided for advising the applicant of his obligation to file a federal tax return based upon the taxable income reported.