Everyone must file their Income Tax Return (ITR) annually. Unless, you’re eligible for tax exception, such as those who earn below a certain amount. Now, if the law requires you to file, then you must know how to do it properly. Read on for the basic guide, or visit taxsharkinc.com/roseville/tax-preparation/ for expert advice.
Steps on How to File Income Tax Return
Begin by determining if you really need to file for ITR. If you are, proceed with the following steps:
- Begin by gathering all necessary documents for filing tax. This includes a W-2 Form from each of your employer, 1099 and 1099-INT form and other earning and interest documents, as well as receipts for itemizing some returns. You can itemize charitable donations, medical expenses, business expenses and mortgage interest among other financial item.
- Then, choose your filing status, whether you’re married or single. That would affect the tax you must file, since married couples are eligible for joint tax. This may affect your percentage of household expenses too.
- You can decide to file your ITR manually. However, the IRS recommends using its online tax filing software for your convenience. You’d even get more accurate returns through this option.
- While filing, determine if you’d take standard deduction or itemizing your return. Each causes significant effects to your tax. For example, standard deduction have increased because of the new tax law. However, other deductions are removed.
- If you have an outstanding debt, learn about getting tax payment today. Getting payment plan is even a better idea to help you.
- Lastly, be sure to file your ITR before April 15 to avoid charges.
These are the six basic steps in filing your income tax returns today. If you still have doubts, be sure to get in touch with a tax expert to help you. Also, do it as early as possible to avoid missing the deadline.