You can not understand many important things in life until you do them for the first time: cycling, getting your first job, and to do your taxes.
filing your tax return on income is one of those adult rites of passage may seem shrouded in mystery until you sit down to table for the first time.
the good news is that filing taxes for the first time is usually quite painless. Uncle Sam might even end up paying you!
The tax on income process actually begins on your first day of work, when you fill out a W-4 form.
The form includes a worksheet where you can match basic information, such as if you are married or have dependents, and how allowance may claim.
based on this number, your employer will deduct the money from each of your paychecks, that goes to your income taxes.
you can ask for extra money to be withheld from each check if you anticipate a project larger tax law than normal, you'll be covered.
Yes, taxes are collected throughout the year, not just on April 15.
filing a tax return is a way to "fix" with Uncle Sam. If you did not withhold enough taxes from your paychecks during the year, you may have to pay the balance - but if the opposite happens, you get a refund
First thing;. do you even need to file a tax return?
The IRS only requires tax returns of people making the minimum amount of money for their filing status.
This is the minimum filing requirements for the tax year 2014 for persons under 65 years to 31 December 2014.
- simple people : $ 10.150
- heads of household: $ 13,050
- the filing of married couples jointly: $ 20,300
- widows with dependent children :. $ 16,350
Married couples filing separately have a $ 3.950 threshold, regardless of age
If someone claims you as a dependent on his tax return filing requirements are below:
- Simple (under age 65): $ 6.0
- single (over 65 years): $ 7750
- Married (under 65): $ 6.0
- Married (over 65): $ 7750
most of the information you need file your taxes will be included on a form called W-2 your employer will send you in January or February.
form shows exactly how much you were paid during the tax year and how much has been retained as federal tax and state (if your state income tax).
What if you're self-employed? Do you pay taxes on income all year round?
For most independent people, the answer is yes.
Whether you are an independent contractor or a sole proprietor of a small business, you need to pay quarterly estimated taxes.
instead of receiving a W-2, independent people receive Form 1099-MISC for all business customers that provide "non-employee compensation."
With your W-2 or 1099-MISC in hand, you are ready to complete your first declaration of income tax. But IRS Form 1040 you need to file
This depends on the complexity of your tax situation:
- 1040EZ is for single filers with no one dependents and no mortgage wishing to claim the standard deduction.
- 1040A is for singles or married people who own a home, dependents and want to claim certain credits or tax deductions, but also do not want to detail all their
- 1040 for people who own their own business, having a rental income or want to itemize deductions.
, let TaxACT Free Federal Edition guide.
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