As the year draws to an end and you are enjoying the holiday season on topics that may be far from your mind is your annual taxes. December often brings along increased expenses because of the holiday season, especially if you celebrate the Christmas tradition of gift giving. Your December income and expenses are the last of the year and ads for tax filing will begin shortly. As gloomy as paying taxes may seem to look on the bright side; tax refunds.
Governments don’t require everyone to pay taxes in the same way but, to an extent, almost everyone is subject to taxation. Your paychecks automatically withhold a certain amount for taxes. These withholdings are a reassurance from the government that the minimum amount of taxes owed is collected. When you file your annual taxes, you can be reimbursed a portion of these withholdings depending on a variety of factors. You don’t necessarily need an accountant to know some of the rather ingenious tax insights to save money in an entirely legal way.
Whether this is your first time filing for taxes or you’re a veteran, these tips are sure to make this year’s tax preparation much easier.
Who has to prepare their taxes?
Despite the fact that taxes are applicable to almost everyone indirectly, there are a few people who are affected by it directly. That’s why the first step toward filing for taxes is obvious to know for sure whether you’re obliged to do it or not. The IRS doesn’t let ignorance excuses you from their laws and this can lead you to a legal conundrum if you don’t file properly. For starters, if you are a U.S. citizen or resident or a native of Puerto Rico, you are required to file a federal income tax report. That’s the most basic form of filing. However, your marital status, age, the means you use for filing, and annual income all play a role in whether or not you have to file for taxes or not. You don’t have to file if ALL the following apply to you:
- Are under 65 years of age
- Are single
- Don’t have any special circumstances that require you to file (like self-employment income)
- Earn less than $12,200 (this standard is subject to change)
Some perquisites before filing
Collect and arrange all your records, including documents showing your income and expenditures. The organization will help make it much simpler to do the taxes. Gather the necessary information to manage the tax filing before you get underway. First up, you might have to get your W-2 form to schedule your application; you will need the filled data from this form. Your company will send the W-2 to you by 31 January of the tax year at the latest. You can also conveniently to get an affordable tax preparation and e-filing program authorized by the IRS.
Filing for taxes can seem to be much more of a hassle than it needs to be. You don’t always need an accountant to assist in filing. A little elbow grease, some research, and a bit of time can have you ready to file properly and have you waiting for your refund.