Tax Filing Basics
Tax Filing Basics: Tax Filing 101

Since 1913, people who work in the United States have given part of their paychecks each year to the federal government when the states endorsed the 16th amendment that gave Congress the authority to collect a federal income tax.

 

This tax is known as the federal income tax, and it is vital to file a yearly tax return that verifies that yours has been paid.

 



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Eligibility for Filing Tax Returns
The Eligibility for Filing Tax Returns: Tax Filing 101

If you're still under your parents' roof, for example, you may be a financial asset to them, helping them to pocket some more of their hard-earned money as they claim you as a dependent.

 

But you probably will have to finish some paperwork for Uncle Sam if you're on your own and working full-time. Determining whether you must file a return is the first step. In g...
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Forms for Filing Tax Returns
Forms for Filing Tax Returns: Tax Filing 101

You will have to file a tax return using Form 1040 (or one of its variants, such as 1040EZ or 1040-NR) unless you are a dependent or you did not make any money during the year.

 

For the previous year's tax return, most people require filing by April 15. By means of your job and other financial institutions, you start getting reports on your income in January.

 

You must first determine which filing status applies to you, since your tax rate and standard deduction rely on your filing status.

 

There are five filing statuses:

 

Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Widow(er). Your status is determined as of the last day of the year.


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Tax Tips in Filing Your Returns
Tax Tips in Filing Your Returns: Tax Filing 101

It's only half the battle to gathering forms, receipts, and other paperwork to complete your tax return. It is equally important to double-check your forms, figures, information, and packaging procedures once you've finished your return.

 

Please review your return and envelope for misprinted, overlooked, or miscalculated information. Any mistake can cause processing delays that may hold up your refund.

 

 

To prevent mistakes on your tax return, the tips below can serve as your checklist. And to avoid mailing delays, ensure that you have adequate postage and your complete return address on the IRS envelope.

 

Keep in mind that any delay could cause you notices, penalties, and interest charges.

 


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Disclaimer: All material included in the website is intended for information purposes only and not to give you advice that relates to your specific circumstances. You are advised to discuss your specific requirements with an independent financial adviser.