Individuals in general - As an individual U. S. citizen or resident, whether you must file a return depends on your gross income, your filing status, and your age. Dependents - Even if someone (such as your parents) can claim you as a dependent, you will still have to file a return if your gross income is over a certain amount. To see the IRS filing requirements for most taxpayers in 2019 (for the 2018 tax year), look at IRS Publication 501: http://www. irs. gov/pub/irs-pdf/p501. pdf.
Single Married filing jointly Married filing separately Unmarried head of household Qualifying widow or widower with a dependent child
You are married and living together as spouses You are living together in a common law marriage that is recognized in the state where you now live or the state where the common law marriage began You are married and living apart, but are not legally separated under a decree of divorce or separate maintenance, You are separated under an interlocutory (not final) decree of divorce. For purposes of filing a joint return, you are not considered divorced here.
Your standard deduction (if you do not itemize deductions) may be higher, and you may qualify for tax benefits that do not apply to the other filing statuses. However, married people who both earn approximately the same income may pay more taxes if they file a joint return than they would if they filed to “single” returns.
You are unmarried on the last day of the tax year You paid more than half the cost of keeping up a home for the year A “qualifying person” lived with you in the home for more than half the year (except for temporary absences such as school). However, if the qualifying person is a dependent (such as your child), they do not have to live with you. A qualifying individual is typically your child, but can also be a relative that lives in your home for whom you care. If your spouse died during the tax year (and for 2 additional years following your spouse’s death) and you have a child, you can file as a qualifying widow(er).
If you haven’t received your W-2 by January 31st, ask your employer to provide you with it. Although the IRS can help you request this, it will take longer than if you can get it on your own. If you do not receive your form by February 15th, the IRS can help you get a copy by requesting the form from your employer. When you request IRS help, be prepared to provide your name, address, and phone number; Social Security number; dates of your employment; and the employer’s name, address, and phone number. [7] X Research source EY Tax Guide, Part II.
If you do not receive a 1099 Form by February 15th, contact the business or bank that is supposed to provide it to you. If you still do not receive it, call the IRS for help.
In addition to W-2s and 10992, you should keep income verification records such as bank statements and brokerage statements. [9] X Research source EY Tax Guide, Part II. You should also keep various records of expenses, including sales slips, invoices, receipts, canceled checks or other proof of payment, and written communications from qualified charities. [10] X Research source EY Tax Guide, Part II. If you own a home, you should also keep several records associated with those costs, including closing statements, proof of payment, insurance records, and receipts for improvement costs. [11] X Research source EY Tax Guide, Part II. Other investment records you may need include brokerage statements, mutual fund statements, and receipts for collectibles. [12] X Research source EY Tax Guide, Part II.
Examples include a Schedule A, Schedule B, Schedule C or C-EZ, Schedule D, Schedule EIC, or Schedule SE.
If your Schedule A total exceeds the standard deduction, you are typically better off itemizing your deductions. [16] X Research source
Preparation of the schedule is only necessary when your interest or dividend income exceeds the IRS threshold for the year, which was $1,500 in 2018. [18] X Research source For example, if you only earn $200 of bank interest this year, you must include this amount in your taxable income, but preparing a Schedule B is not necessary.
If you have a single business with simple accounting that meets IRS qualifications, you can use the shorter Schedule C-EZ rather than Schedule C. [20] X Research source
Schedule D separates the transactions into short-term and long-term transactions depending on whether you own the property for more than one year or not. [22] X Research source Your short-term capital gains are taxed at the same rate as your other income, but your long-term gains are taxed at lower rates. [23] X Research source
TurboTax H&R Block TaxAct TaxSlayer These types of programs are best for people who do not have very complicated tax situations. If you have any reason to believe that your taxes may be complicated (reasons could include claiming lots of deductions, having a high income, or owing taxes from a previous year), you should consider hiring a professional to prepare your taxes.
You may not need to install or download the software if you use an online filing site, such as Credit Karma.
Income from your job will be listed on your W-2. Other types of income may not be listed on any particular tax forms but should be saved by you in your records. See Part 1 above for a detailed discussion of necessary documents.
The standard deduction, which is a dollar amount that reduces the amount of income on which you are taxed and varies according to your filing status. If you choose the standard deduction, you cannot itemize your deductions. To find out what your standard deduction would be, you can use a calculator such as the one available at: https://www. irs. gov/help/ita/how-much-is-my-standard-deduction. [28] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source Itemized deductions, which include state and local taxes, mortgage interest expenses, unreimbursed medical expenses if they exceed a certain threshold, and charitable contributions. Whereas income doesn’t necessarily need to be proven, deductions do. You will need supporting documents, such as receipts, logs, and/or payment slips to prove that your deductions are legitimate.
For example, if your income for the calendar year is $32,000 but your tax preparation software indicates that you owe the government $8,000 in taxes, you probably know that there’s been a miscalculation: $8,000 in taxes on $32,000 means you’re paying about 25% of your income in taxes, which is too high a number for your income bracket.
To file by mail, send off your tax documents to the address specified on your documents on or before the filing deadline. The filing date is usually April 15th. If you owe any money, you may need to file your taxes and send in your owed taxes to separate locations. [31] X Research source EY Tax Guide 2015, Chapter 45. You can find an interactive map for where you need to mail your filing at: https://www. irs. gov/uac/where-to-file-addresses-for-taxpayers-and-tax-professionals-filing-form-1040-es. [32] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source To file electronically, file your tax documents over the internet on or before the filing deadline. The software will prompt you for your banking information. Carefully type the name of your bank, along with the account number where the IRS should send any refunds or deduct any payments. [33] X Research source EY Tax Guide 2015, Chapter 45. You may also qualify for Free File, which is another service available for free through the e-file system, if your income is below a certain amount. [34] X Research source EY Tax Guide 2015, Chapter 45.
To request an extension by mail, you will need to file a paper Form 4868, available at: http://www. irs. gov/pub/irs-pdf/f4868. pdf. [35] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source If you paid any part of your taxes due at the time you filed your extension, include that payment on your tax return form.
If you believe that you will be able to pay in full within 120 days, you should call 1-800-829-1040 to request extra time. If you cannot pay within 120 days, you should complete Form 9465 (http://www. irs. gov/uac/Form-9465,-Installment-Agreement-Request-2) or Form 9465-FS (https://www. irs. gov/pub/irs-prior/f9465fs–2011. pdf) to request paying the remaining tax in installments. [36] X Research source EY Tax Guide 2015, Part II.
The IRS estimates that there’s about a 20% error rate with tax returns filled out by hand, whereas tax preparation software only has a 1% error rate. If you’re worried about making mistakes on your tax return, it’s best to stick with tax preparation software, which catches mistakes on the fly as it prepares your taxes. Additionally, if you have a complicated tax return, you should consider hiring a professional tax preparer.
The package includes a complete set of instructions, along with the necessary forms for filing state and federal income tax returns.
Make sure you sign and date each return before you mail it.
Additionally, keep in mind that the “tax owed” does not necessarily mean the tax that you will have to pay. Your tax owed is offset by any federal income tax withholding and quarterly estimated payments you made during the year.
Address an envelope to the federal government and an envelope to the state using the addresses provided in your instructions. Your federal and state tax returns will go to 2 different locations. Weigh each envelope with the return and any necessary documentation included and apply the correct amount of postage. Using the incorrect amount of postage may delay your refund.
By authorizing an electronic funds withdrawal from a checking or savings account. To utilize this option, include the routing information for your financial institution and your bank account number on the Form 1040 when you file electronically. By credit card or debit card By mailing a check or money order (made out to the United States Treasury) using Form 1040-V, Payment Voucher By enrolling in the Electronic Federal Tax Payment System (EFTPS), which is a secure government website that allows users to make federal tax payments and schedule tax payments in advance via the internet or phone. For more information on EFTPS, go to the IRS website and choose “EFTPS” under “Filing & Payment” on the right-hand side of the website.
To request an extension by mail, you will need to file a paper Form 4868 (http://www. irs. gov/pub/irs-pdf/f4868. pdf). [39] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source If you paid any part of your taxes due at the time you filed your extension, include that payment on your tax return form.
If you believe that you will be able to pay in full within 120 days, you should call 1-800-829-1040 to request extra time. If you cannot pay within 120 days, you should complete Form 9465, available at http://www. irs. gov/uac/Form-9465,-Installment-Agreement-Request-2 or Form 9465 to request paying the remaining tax in installments. [40] X Research source EY Tax Guide 2015, Part II.
Note that most tax return preparers are now required to file all returns electronically
