If you are working for regular payroll, you have to pay taxes. On your behalf, your employer withdraws the taxes from your income and further pays them to the state government. But how would you know that if the taxes are filed correctly or not? Because this is the first step of the process, it is important to make sure that you are not paying more than you are required to.
There are a number of ways that you can choose to file your taxes. Some options even allow you to file a tax for free. But if you are self-employed it is better to take the help of professionals.
In this post, we will introduce you to the various options that you can use. But before we tell you about the various methods of filing a tax, learn to know why it is important to file a tax return.
Why is there a need to file a tax?
Irrespective of your income, everyone has to pay the taxes. And, if you do not pay them, the IRS can charge you penalties for failure to pay. As a rule, the IRS charges 0.5% for your unpaid taxes for each month when you do not pay up to 25%. Remember that interest generally gets accumulated on unpaid taxes. And, the interest rate on your unpaid taxes is equal to the union short-term rate, plus 3%. This is why it becomes important to file a tax return.
How can you do it?
To file a tax you have three choices which include:
IRS File: The IRS professionals provide you with free options to file. They provide online tax software to Americans that have an income of $72,000 or less. According to the instructions of the IRS, you need to complete form 1040. After the completion, you need to mail the form to the IRS. And, in case if you earn more you can use an online program. However, the further process requires the guidance of the tax professionals. We have mentioned this in the point below.
The Tax Professionals: Undoubtedly, filing a tax return is a daunting task and can eat up your hours. But, if you have a professional to prepare for the tax return process, they not only save your time and money but also provide you with defense and answer all your questions and resolve all the issues. In addition to it, if the IRS starts asking questions you don’t have to worry about it, as the tax professional knows about the laws and ways to deal with the IRS.
Tax software program: Using a tax software program is one of the choices that you have before filing a tax. It will ask you a series of questions which include your income and potential deductions. You simply need to complete your 1040 form. And on the basis of your responses, it electronically submits the file for you. Before this, it will check for the errors and make sure that there are no calculation mistakes.
From knowing the importance of filing a tax to the ways to do it, you have an idea about tax filing. Did you know that the majority of Americans opt for tax professionals? And, the reason for it is the level of experience and the specialization that is suitable for your requirements. Therefore, we suggest you get guidance from the experts that are trained about tax preparations. Particularly, if you have no experience dealing with or filing taxes to the IRS.
Sophis Eliz is a professional writer who has been writing about tax fraud investigations for 3 years. She has been recognized as one of the important contributors to a number of leading magazines. Her expertise includes tax laws and the right ways to handle tax returns.