What is Income Tax Return
A lot of people who earn enough money are normally required to get some part of it to the running of the government by filling out an income tax return. To file tax return, it is important to know who needs to file federal tax return or even state tax return.
What is Tax Return and Who Needs to File
1. Federal Tax Return and Who Needs to File It
Federal tax return are the taxes filed to the Internal Revenue Service IRS which is the body that handles tax issues for the government of the United States of America. By allow anyone who earns more than some specified amount of money yearly will have to file a tax return. However, not everyone would file a federal tax return, there are criteria that determines the eligibility. For instance, your age, if you have dependent or not, your marital status and your gross income will combine to determine your eligibility. However, you need to file federal tax return if
- Your earnings are over $400 from self-employment
- You made over $10,000 as gross income and a single filer
- Your home was sold during the tax year
- You are owing taxes either due to your retirement account or from excess contributions
2. State Tax Return and Who Needs to File It
Stata tax return are the returns made to the state by an individual or business. It is independent of the federal tax income program of the federal government. It is important to file state tax return as the consequences of not filing may be harsh like those of the IRS. In fact, in some cases, failure to file state taxes may even lad to prosecution from the state. However, majority do pay interests, penalties for not filing in their state tax return.
You need to file state tax return if you earn money or live in about 41 states of the United States or if you live or earn money in District of Columbia. In fact, only few states including Florida, Texas, South Dakota and Alaska don’t charge state income.
3. Why Do You Need to File Income Tax Return
There are a lot of reasons why you file tax return and they are very clear. In the first place, filing income tax return will put you in a position for a tax refund even if you are not required by law to file a tax refund especially if you have dependents. This is because there could be some tax deductions and tax credits that you may qualify for and this could help in increasing your tax refund. Besides filing income tax return puts you in advantage when applying for government benefits or loans as you have to show your tax returns.
Use PDFelement to Fill Your Tax Forms
When you fill your tax forms online, you will certainly require a PDF editor to make it work. This is because IRS tax forms are issued in the PDF format. PDFelement is one of the best tax form filler tool. This is because you can edit any field in the tax form and it has checkbox, drop down features and you can sign on the form using the platform. Besides, it is secured so your information cannot be seen by a third party.
It is important to file tax return because it has its own benefits and not filing can easily put you into trouble. PDFelement offers you the best platform to fill your online tax forms. If confused, you can always check some tax tips on the IRS websites on how best to file your returns.
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