Most people face tax return filing time with dread. However, this annual chore can actually work in your favour. There are many tools available these days to simplify tax return filing. You are legally obligated to file a tax return every spring, if you earned a certain amount of income in the previous tax year.
People who earned income that falls under the exemption line, may still want to file a tax return. This can make you eligible for tax credits, or create room in federally registered savings vehicles such as an individual retirement account.
People, who have filed income tax returns in the past, will usually receive their tax forms in the mail. If your tax situation is similar this year, then you can use these forms. If you have moved, you may have to find out where you can pick up your tax forms locally. If your tax return is more complicated this year, you may need additional forms. You can fill out your tax return by hand, and mail it in. You can also do your tax return online.
You need to keep any tax information forms you receive from employers, or financial intuitions. Also, gather any receipts required for deductions or exemptions. You can often access your last tax return by contacting the IRS.
There are many tax preparation programs on the market. You can find them online, or at your local electronics retail outlet. You will want to select the best software to suit your needs. There are different features offered by each program. You should look into how easy the program is to use, and which tax situations it is suited for. Some programs will prompt you to fill in necessary numbers, and do more calculations for you. Some will consistently locate common mistakes. Some will feature calculators to help you figure out certain deductions or credits. If you are a low-income earner, you may qualify for free tax preparation services. You can find out which programs you might be eligible for on the IRS website.
It is important to file you taxes on time. If the government owes you money, then you want to get your refund as soon as possible. You can use it to pay off interest bearing loans and bills. Otherwise, the government will be using it as an interest free loan. If you owe the government money, you will face interest and late filing fees unless you submit your form on time.