Tax Return 101

3 Basic Things You Need to Know about Tax Return

Are you a fresh graduate still finding your way around the world of 9-5 work schedules, salaries, loans, and filing taxes? For most, filing a tax return is bothersome and taxing. But it’s the responsibility of every law-abiding citizen. If you don’t have a clue how to file one, the following paragraphs can help you get started.

Definition

This is a form where taxpayers report their income and expenses. An individual or business that has a reportable income needs to file forms every year. Examples of the profits you need to report are salaries and wages, interest, capital gains, and others. After filling out the form, you need to send it to appropriate taxing authorities such as the Internal Revenue Service or your local tax collection agency.

Different Forms Allotted

You need to use the official forms prescribed by the IRS or a tax collection agency. Usual forms include Form 1040 for individual taxpayers, Form 1065 for partnerships, Form 1120 for corporations, and Form 1099 for investment income. If you need more time to file, ask for Form 4868 and you can automatically apply for a filing extension.

Sections

  • Income: In this section, you will list all your sources for income such as wages, self-employment income, capital gains, and many others.
  • Deductions: You will report the factors that can decrease your tax liability in this section. They can be an alimony payment or a retirement savings plan.
  • Tax credits: Your tax credits allow you to offset the taxes you owe. Examples of tax credits include pensions as well as the care of children and seniors.

By the end of your tax return, you will be able to identify the taxes you owe as well as your overpaid taxes. You will then report your return by mailing it, filing it through an e-filing website, or hiring a tax preparer.

If you need help filing your tax return in Dallas, GA or if you’ve encountered a problem in one of your forms, you can ask Serita Lombard, CPA, and we will give you the assistance you need. You can reach us by calling (770) 443-5437.

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