Filing Your Income Taxes
Since 1913, the United States give Congress the authority to collect a federal income tax from people who work in the United States
. This requires them to give part of their paychecks each year to the federal government.
The yearly filed return is to verify that yours has been paid and you file those returns with the IRS, the Internal Revenue Service. This branch of the Department of Treasury is the federal collection agency of the United States.
So, who has to pay these fines? The four main categories of taxpayers include: individual taxpayers who pay based from their wages and investments, small businesses and self-employees, large and mid-size businesses and exempt and government entities such as charities.
Most people are categorized under the first two sections listed above. These dues must be filed by midnight on April 15 annually.
Special requests and extensions may be granted by the IRS by filing Form 4868 in which case they must be completed within four months. Interest on extensions may be required.
To prepare for doing your taxes, you need to verify your status. Your identification forms that claim your residency must be submitted to the IRS from your local library, post office or by going online, downloading and printing them.
There are different forms to fill out for different claimed residencies. Certain categories include resident aliens, nonresidents and exemptions.
The next important step is to gather your documentation- papers and documents you will need to file your forms. You will need numbers for your visa, your passport and your social security number.
Usually, employers withhold an estimated amount from your paycheck during the year and will send you a form (W-2) that shows your earnings for the past year and how much was deducted from your pay. You will send an original of this W2 form when you file your return.
If you are self-employed, you will need your form (Form 1099) to show your income. Any additional income from investments and dividends must be reported on the 1099-B. If you receive royalties or rental income, this is also reported on the same form.
Any interest on your mortgage or real estate you have paid will be listed on a 1098 that is mailed to you. The originals of each of those forms are needed for you to complete your taxes; however, you should make copies to save for your records.
As a side note, the IRS receives a copy of all these documents, so it is important to report all income that you receive during the year as accurately as possible. If your return does not show your genuine earned wages, you will be tracked down and penalized.
The next step is filling out the forms. Once they are obtained, there are specific instructions included with them.
You may either fill them out and mail them in or complete the online site offered by the IRS which requires a PIN number obtained by following instructions listed on the site. The information required for that Pin number includes your birth date, social security number and information from the previous year's tax return.
Some services online are free and some are not. Be sure to check the details before you begin to check for hidden fees and costs.
For help with filing your taxes, the IRS has customer service representatives available at their toll-free number from 7 am until 10 pm EST. You can also call your local branch office for the IRS to talk to someone and get help.
Professional preparation specialists are another available aid for your benefit. Also, if you own your own business, and will have complex taxes, you may want to consider hiring an accountant or attorney to help you.
Once you have filled out the necessary paperwork, you may or may not owe money. If you owe money, there is a deadline by which it must be paid.
However, you may be owed a refund if you have overpaid throughout the year.
If you are single, you will automatically file an individual return. If you are married, you may have the option of a joint tax return; however, you may file separately if you wish.
The benefits of filing a joint return include: a lower income rate bracket, childcare credit, less social security benefits are considered income, credit on savings bonds can be used for college and the ability to shelter larger amounts of preference income from being fined. Both spouses must sign a joint return for these benefits.
by: Jack Landry
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