Depending on your filing status and yearly income, you may not have to file a return with the IRS. Nevertheless, even if you do not have to file, it is highly advisable that you submit a tax return. After all, you may be eligible for a refundable credit despite not owing any income taxes. One thing you should always keep in mind is that filing your taxes improperly could end up forcing you to dig deeper into your pockets. Worse, you may trigger the dreaded IRS audit. To prevent this from happening, here are some of the things you need to know about income tax.
How to File Taxes
First things first, you need to know what it takes to file your tax. To give you a tip of the iceberg, there are three main ways to file your income tax. They include paper filing, tax preparation software and tax professionals. Unless you decide to use the paper filing method, you are going to submit your taxes electronically. Electronic submissions tend to be safer and much faster when compared to paper submissions.
To avoid the stress that comes with paying tax professionals or sharing your personal financial information to a stranger, you should consider turning to an income tax calculator. With a tax calculator, you can file your taxes without parting with a single coin. If you are searching for such a tax calculator, simply check out Taxfyle.com.
How to Save Money on Your Tax Return
One of the main reasons why you file taxes is to reduce the total taxable income you’re liable for. With a tax refund calculator, you are certainly going to determine the amount of money you will end up saving on your return. Among the most notable ways of reducing your taxes include investing in retirement savings accounts, itemizing and using tax credits. Be sure to use a tax return calculator if you are to get a clear idea of how much money you’ll save.
What Happens if You File Late
If you happen to miss the tax-filing deadline, and owe taxes, there is a penalty you have to pay. Fortunately, you will not be penalized for filing late if you are owed a refund. You should, however, file a return within three years, or else the government is going to keep your refund. For those who owe the government money, then you have to make do with the penalty for filing late or the penalty for paying late. Interest is also charged for any amount of tax that is pending before the deadline.
Even though filing your taxes can be stressful, you should spend some time understanding what to expect and remain proactive about the situation. If you need further help, you can visit taxfyle.com/income-tax-return-calculator and get the personal support you need while filing your taxes. Alternatively, you can seek the help of an independent tax professional to offer advise with the entire process.