Paying taxes in time is one of your obligations as a good citizen. Only when we pay our taxes on time and as required, our government can thrive and use the revenue to fund other various essential projects that are crucial to the nation. However, paying taxes isn’t an exercise most of us enjoy. The thought of filing all the forms, and doing all the calculations can be quite a daunting task. That’s why when it comes to filing tax returns, most of us don’t like the responsibility. Almost all taxpayers can back me when I say the process is one of the most tedious and less-liked.
Nonetheless, understanding the arrangements needed for the process can make the tax preparation process so much more pleasant than if you were to do it blindly. Besides, you are expected to use specific tax forms for particular returns from the 1,040 forms when filing your returns. Therefore, you must know exactly which form to use for each submission. Additionally, you must meet specific criteria as laid out by the Internal Revenue Service, IRS, to use particular forms.
Tips for Paying Taxes
- Obtain the Required Forms and Paperwork: Different returns will require different forms. Therefore, you should ensure you have the correct IRS form for each submission. This includes the W-2 form and other income statements like those for Real Estate taxation.
- Understand Your Filing Requirements: Your marital status, as well as the amount you pay for keeping your home, can help you understand the accurate filing status.
- Ask whether you are eligible for the free tax preparation: The Internal Revenue Service offers free help to military members and their siblings, low-income earners, people with disabilities, the aged, and taxpayers with limited English in different areas including New Jersey and the Bergen County.
- Calculate Your Taxes and Credits: You are required to sum up all your income sources including the interest earned from investment accounts or banking, pensions or retirement-related profits. You should also check your eligibility for deductions and credits, including education, child care expenses, and charitable contributions.
- Claim Your Dependents’ Exemptions: You may be eligible for dependents’ exemptions. Despite, it’s important to understand the rules governing these exemptions before claiming.
- Determine Your Estimated Pay-period: Find out if you are required to pay taxes on revenue that is not subjected to withholding; such as interest, dividends, and self-employment.
- Choose a Suitable Filing Method for Your Needs: You can choose to either file your taxes online, through a tax professional or by mailing your tax return paper. Also, you can pay your federal taxes through debit or credit cards, direct pay, an electronic national tax system, by check or money order.
- Tax Refund Information: For those expecting a refund, the IRS recommends using its online system to check your status. However, you can also contact the IRS via an automated phone system to check on the status.
Tax Filing Information
For the fastest information, you can get your answers on the IRS online system. This option works best for less complicated questions though. For the sophisticated inquiries, ensure you have all the required information and supporting documentation before calling the IRS to avoid having to end your call to get some required details.
How to Protect Yourself from Identity Theft
Setting up an online account for all your sensitive financial information, utilities, and communications is crucial to protecting your confidential information. Without an existing online account, hackers could pose as you and fraud you. It’s not very difficult for them to call a company and ask to set up an online account which may make you vulnerable to a scam.
By taking advantage of the available resources on the internet, from your tax experts and on the IRS, you can better your chances of not overpaying the government. It’s necessary to structure your financial goals to match your tax savings whenever possible. After all, it is your money!