How to file your income tax return, Every state has different ways to pay income tax returns. They have different rules to pay income tax returns. There are different types of income tax returns in different states. A special tax form uses to pay tax according to specific condition. It also allows requesting the income, deductions and credits etc. that links to any single one. The most common types of income tax returns in US are following.
- Form 1040: It uses for single person and it is in long form.
- Form 1040A: It uses for single person and it is in short form.
- Form 1040EZ: It uses for single and joint filers with no children.
- Form 1040NR: It uses for outsiders of USA.
- Form 1040NR-EZ: It uses for outsiders of USA with no children.
How to File Income Tax Return
IRS Tax Form 1040
It is an ordinary income tax form. It uses for any single person’s income. It is in long form than other forms. It allows the taxpayer to request on different costs and adjust income.it takes time to complete it. It helps the taxpayers to lower their tax bills. There are many tax forms to select while filing income tax. It is better to use this form instead of others.
How to Obtain Form 1040
There are several methods to get this form. The easiest way to get this form is to download from internet. There are some centers that have carried this form. It is available from IRS office as well. It is also available in the form to request US mail to send this form and file income tax return.
Deadline for Form 1040
The deadline to deposit this form with tax is April 15th. A six month relaxation is available with IRS tax from 4868 for late filing. The tax payments are still the same as on April 15th.
Filling out Form 1040
The following info is necessary before filing this form.
- Proof of identification
- Filing status and residency status
- Social Security Numbers for all family members
- Dates of birth for all family members
- A copy of last tax return
- Statements of wages earned
- Statements of interest/dividends from banks, brokerages, etc.
- Proof of any tax credits, tax deductions, or tax exclusions
- Bank account number and routing number
Name, Address, and SSN
It is compulsory to give complete name, address and SSN. The missing of anything will increase the tax. The SSN is compulsory for tax return and file income tax return.
There is different status for filing. It may include single, married filing together, married filing separately and with children. The more status for filing will decrease the tax.
In this tax form anyone can request to reduce the tax on income. The taxpayer can show all the details related to his expenses, children and spouse. The details should be accurate otherwise the tax will increase. If anyone is living with the taxpayer then it is necessary to give the info about them.
How to file income tax return, The income is the money that receives during the given tax year. There are many people who understand that wage and tax reports are their annual income. The taxable income is the gross income which comes without any tax paying. This includes all the profits which come from any earning.
It may be from stocks, real states, lottery, etc. income is the part of gross income. It does not call as taxable income. Anyhow the taxable income is the part of gross income. It is under the supervision of governing authority. The taxable income is the amount of income which comes in the form of income tax.
Adjusted Gross Income
The adjusted gross income is the gross income comes from all taxable sources. It has some allowable deductions. It means that the expenses in which medical, business and moving etc. are there to adjust. The gross income is the money which gets from goods, property and services. These are not exempt from tax. On the other hand the income from other sources which helps to adjust the income.
Tax and Credits
It is helpful to take benefit of tax credits or deduction. It will reduce the taxable income. This will increase the chance to take tax refund. It is necessary to understand how to apply for it. There are two types of tax deductions. One is standard deduction and the other is itemized deduction. It is better to go with itemized deduction. Child tax credit will help to take tax return to cover the expenses of child. There is an extra tax that is Alternative Minimum Tax. It is applying on high earners to get income tax. It includes personal, medical and other expenses.
In other taxes the self-employment tax is there. It includes social security and health care benefits tax. It helps the tax payer in his old age.
- Withholding tax is compulsory to pay. It is basically the tax on income that is from wages and sends directly to IRS from the employer. It means that pay as earn.
- Estimated tax is applying on the person who is doing own work like business.
- The earned income credit is helping to those who have low income and self-employed. It helps them to get income tax due or a tax refund.
- The additional child tax credit is also a tax which is refundable in against of child. The taxpayer can apply for it but could not get the amount of it.
- The American opportunity tax credit is for advance studies. The people can apply for this tax and can cover their tuition fees and course materials.
- The first time home buyers tax credit is applying on those who buy a new house first time. The tax credit is equal to 10% of the price of the home. It continues until it sells to other one.
A refund process will apply when the income tax is more than the amount pay. It is a quick and fast process and can easily check through internet. If the taxpayer has filed through internet then it will refund it in three days. If the taxpayer has filed through paper then it will take longer time up to three weeks.
Amount You Owe
The taxpayer can pay his tax through any source like credit cards etc. If he is applying through paper then cash or check is acceptable. There is also a facility to pay tax on installments.
Third Party Designee
The taxpayer can authorize anyone to take refund from IRS. The details of that person are necessary to give on the form for further actions.
Sign Your Return
It is compulsory to sign the form. If there is a joint tax return then the other one must also sing the form.
Assemble Your Return
Try to sum up all the documents as require by the form to file the return.
Filing your income tax return with the IRS
There are two methods to apply for file income tax return. One is paper mail and the other is online. It is easy and safe to apply through online(file income tax return) and get refund faster than paper mail.
Source website for how to File Your Income Tax Return
Hi, I'm Abdul Ghaffar. A professional Bookkeeper and new into the Blogging. I am QuickBooks Online Pro Advisor. I have started blogging to help small business Owners, Bookkeepers, and Accounting to minimize Bookkeeping maximize the Profits. I have my own Accounting Services Tax King Inc. My Team working with QuickBooks online Clients through out the USA. My goal is to provide small business owners, accountants, and bookkeepers with world-class content for improving their financial and business lives and to make a lasting and meaningful impact in the small business world.