As you probably know, the tax code is a tiered system. By this, I mean that it taxes people at different rates based on their earnings. The more your earnings, the higher your tax rate in general. Ah, but what about those that do not earn much during a particular year? Well, you might not have to file at all.

The IRS sets a minimum income level that must be met before a person or persons have to file. As you might guess, the minimums are pretty low. Following are the earning limits for 2006.

Let's assume you are filing with a singe status. If you are under the age of 65, you do not need to file a tax return if your earnings were less than $8,450 in 2006. 65 or older? Then you must file a tax return only if your earnings were equal to or over $9,700.

Many married couples file returns jointly. There IRS has set minimums for you as well. If both individuals are under 65, the minimum is $16,900. If one of the spouses is over 65, then the number bumps up to $17,900. If both spouses are equal to or over the age of 65, then no tax return is needed unless you earned over $18,900.

For those that are married, but filing separately, a tax return is required if you earned over $3,300. If you are claiming head of household filing status, the magic number is $16,500 if you are under 65. If you are 65 or older, the number bumps up to $14,600.

Assuming you fit any of these definitions, should you take advantage of your right not to file a tax return? Probably not. Why? Well, there are a couple of reasons. First, the IRS may wonder why you didn't file. This could lead to an audit, particularly if you make decent money in the years before and after the year you don't file.

Another reason you should file is you may be able to get a large refund. The tax code has sections that help people who have had a bad year. You may be able to claim the earned income credit, child tax credit, health coverage tax credit as well as other credits available to you.