Filing of income tax returns year after year have become almost like a natural cycle. It happens around same time every year and phenomena is experienced across length and breadth of the country alike. Here we would highlight some very basic fundamentals and tips which everyone should be aware of to full fill their annual tax commitment.
A. Do I need to file tax return? There are certain guiding rules regarding this and if you qualify under them it becomes mandatory for you to file your annual tax return. However there are many exceptions to this as well. So it is best advisable to study these guidelines and identify whether you are exempt for filing taxes or you fall under mandatory category for filing annual tax returns. For example, all single persons under the age of 65 years must file their tax returns if there Goss earning are above $9350.
B. I have identified if I need to file my tax return, what’s next? Having identified that you fall in the mandatory category to file tax returns is beginning to a part of process which will be repeated year after year. Now second step would be identify which category your source of income fits into. For example if you are a salaried individual you need to fill a particular kind of income tax return forms. In case you get your income by performing a contract work you would be required to fill another form. Depending on the means by which a person earns money IRS department has created different forms and you would be required to identify the right form for your income category.
C. When do I need to submit my tax returns? A peculiar tax season starts from beginning of a new Calendar year i.e., January. Depending upon your income category different dates are earmarked as last dates for submitting the tax returns. For example for individual income tax return usually the deadline is by mid April of subsequent year.
D. What happens if I am not ready by the due date to file my tax return? There can be many reasons depending upon individuals for not been able to meet the deadline for filing their income tax returns. Some people are not able to finish the computation within stipulated time and other might be travelling and so on. One can request for an extension to the concerned authorities upon missing the deadline. Late returns can also be submitted along with some penalty.
