A Guide to Filing Tax Returns for Individuals
The end of Christmas vacations is usually when most people begin their tax return preparation in Hayward/Fremont. As each day draws closer to the deadline (Mid-April), the anxiety and stress regarding tax filing also starts increasing. The main cause for this is lack of knowledge regarding the procedures and laws pertaining to taxation.
The article is meant to serve as a guide to help individuals file tax returns in an efficient and hassle-free way:
While filing tax returns, you would need to submit details of your annual earnings, deductions, investments, liabilities, and other such information. The best method is to maintain updated and accurate records of all your financial transactions throughout the year, so you can just quickly fill in all the required details without having to look for the documents at the last minute.
Filing Status and Forms
Tax rates, deductions and the type of tax credits you are eligible for varies for each individual depending on their filing status. Some of the options mentioned in this category are – Single/married filing jointly/married filing separately/Head of house hold/qualifying widow or widower and so on. It is obvious that you must pay close attention while choosing your filing status, as it affects the way your taxes are computed.
The process of filing tax returns for corporations Hayward/Fremont is quite complicated and is usually done by professional tax preparers. However, if you are a salaried individual, preparing and filing tax returns should be much easier.
Currently three types of tax forms available for individuals:
– 1040EZ – Also known as the “Easy form”, this is an alternative to the IRS’ regular 1040 income tax form. This form offers a quicker and easier way to file taxes for individual tax payers. In order to use this form, you must have a taxable income of less than $100,000, interest income less than $1500 and possess no dependants.
– 1040A – Form 1040A or the “Short Form” is a simplified version of the IRS income tax form 1040. To be eligible to use this form, you need to fulfill certain requirements set by the Internal Revenue Service (IRS) – you must have a taxable income of less than $100,000, should not own a business and must not itemize deductions. Individual taxpayers that have dependants and would like to claim special deductions and credits, often use the 1040A for filing returns.
– 1040 – Also known as the “Long Form”, this is the official U.S. individual income tax return form specified by the IRS. When you fill out your financial income status for the year using Form 1040, you will be able to ascertain how much tax taxes are owed or whether based on your earnings and deductions, you are due for a tax refund. There are several variations of the 1040 income tax form, which can be used depending on your individual tax situation.
IRS encourages people to file their tax return as early as possible to avoid the last minute rush – early filers also get faster refunds. In case you need more time for your tax preparation, apply for an extension in advance. You can get an extension of six months for submission of the tax documents. It is important to pay your taxes by the 15th of April; else you will have to bear interest charges as well as the penalty fee levied by the IRS.
E- Filing is the “easiest, safest and fastest method of filing individual tax returns”. The income tax form is available on the IRS website and can be downloaded from there. Being aware of the right process is the key to filing tax returns for Individuals Hayward/Fremont quickly, smoothly and accurately.