Paying taxes and filing return is the duty of each citizen which they should comply with, in a time bound conduct. Taxes form the base of financial planning in every economy and the burden is with the taxpayers to do it in a precise manner.
A complicated process needs lots of concentration on the part of the person doing it. The preparation and subsequent tax filing are part of one such process that requires total attention to details from the taxpayers. Taking professional help is not something everyone prefers to do as it is a bit on the expensive side. They are free to prepare returns file on their own and submit it online to the authorities. There are many things that should be kept in mind while preparing the tax file. Following the below mentioned tips for filing tax return can be helpful to the taxpayers.
Always prepare early
Why give some unwanted penalties on your designated tax amount when you are willing to pay it anyway? Better to get ready with all the necessary documents and required forms by the due date to avoid any extra fines or interest charges. Now, it’s all so easy with the online facility to file returns.
Know all applicable Sections and Rates
Whether a businessman or a professional service provider, make sure that each of the tax brackets that is relevant and applicable is known to you. This means that you should be aware of the tax liabilities precisely so that there is no confusion about the amount, at the time of filing returns.
Use Free File
The IRS (Internal Revenue Service) has provided a free online filing system for the people to make the procedure simple. According to the yearly earnings, people can select the electronic forms and submit them after filling.
Tax forms
There are different tax forms available for the taxpayers to be filled in while filing respective returns. These forms are named like Form 1040 EZ, Form 1040A, and Form 1040. Depending on the taxpayer’s case, the tax form has to be selected. The number of forms to be filled may vary from person to person and depend on the assets of the taxpayer in question.
Automatic Extension
Yes, extension to tax payment is available for a person who is living abroad and can’t file up to the requisite date of April 15th. There is a two month automatic extension for such taxpayers and they are expected to file their US income tax return by June 16th. The only thing that will be needed extra is a statement that explains why the person qualifies for the extension scheme.
Foreign Tax Deductions
People who have paid tax in other countries could be entitled for some deduction while filing returns in the US. These provisions need to be checked as people paying income taxes in another country are liable to receive tax credits or deductions. This can help to reduce your tax liability considerably in the home nation.
Get official help
For the people living outside the United States, the IRS has given official help in the form of regional office in major cities like London, Beijing, Frankfurt, and Paris. Any US citizen living in these cities can contact the office to get help on filing taxes.
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