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Who Needs to File a Tax Return? 

As a taxpayer, you must be aware of your responsibilities and file a tax return if required. Citizens and permanent inhabitants of the United States usually have to file a tax return and pay their tax liabilities. If the taxpayers fail to file their returns on the due date, penalties might wait for them. If they willfully refuse to file a return, they might face additional fines or criminal prosecution. So you must know about your tax liabilities and file your return on the deadlines to avoid severe punishments from Uncle Sam. This article will discuss the individuals who need to file returns and have tax liabilities.

What Is a Tax Return?

A tax return form contains reports about income, expenses, and other related tax info filed with a tax authority. Taxpayers can calculate their tax liabilities, make plans for tax payments, and ask for refunds through tax returns. The annual filing of tax returns is a must-be in most countries, including the United States. Individuals and businesses must report their reportable income, which involves salaries, wages, dividends, and other gains. The returns are filed with the IRS in the US, and the required information to calculate the taxes is available on these returns. To file federal income taxes in the US, individuals use Form 1040, corporations use Form 1120, and partnerships will use Form 1065 to report their annual income.

tax return form

Who Has to File a Tax Return?

Various factors determine who must file a tax return. Here are some of the essential elements that affect the filing process for different individuals:

All the Income You Receive

Gross income is one of the most critical factors affecting the filing necessity, including all forms of income you receive during a year. It also includes the income sources outside the country or even gain from selling your primary home. Individuals with a gross income of more than a specific limit must file a return and report their income.

Income Thresholds

If your gross income exceeds the required filing threshold, you must file a tax return. Income thresholds differ according to the filing statuses, so taxpayers must consider their potential filing situation.

Self-employment

Are you a self-employed person? If yes, you must file your return yearly and make estimated quarterly payments. The net earning, in this case, must be $400 or more.

Individuals Who Are Claimed as Dependents

Individuals with dependent status might still need to file a return because, depending on the gross income from salaries, wages, investments, and more, they might be eligible for tax payments. Therefore, the parent or guardian must file returns for dependents who can’t do that themselves.

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We at SCL provide business taxes, payroll services, tax accounting, bookkeeping services, and more. Our tax professionals are always ready to help you through tax preparation and offer practical tips to you. We have tax accountants with enough knowledge of the IRS, so they have the required experience and expertise to resolve your issues. Years of experience and hard work make us different in the industry, and our history confirms this. Our quality services are outstanding because they result from experience, expertise, and the latest technologies. Contact our tax office right away to start a joyful journey with us!

The Advantages of Filing a Tax Return

If you file your tax return on its due date, numerous benefits will come to you. Here are some of them:

  • You can get that money back and receive a tax refund if you are overpaid.
  • Taxpayers who file their returns on time and with accuracy will avoid interest and penalties.
  • Individuals who have filed their tax returns can easily apply for financial aid in various situations like student loans.
  • If you are self-employed, filing an accurate tax return on its due date will be advantageous for your Social Security.
  • Filing a tax return can also offer an accurate picture of your income status, which benefits lenders who want to pay you a loan. The amount of the loan and the rates can be easily determined through the broad picture you have provided about your income status.
  • Following the law will always bring peace of mind to you. If you file your return on the due date with accurate information, you will ensure that you are doing the right thing.

Individuals Who Make Less Than the Filing Threshold

If you make less than the filing threshold, it is still better to file a tax return because you might get a refund. Issues like tax withholdings from the payments or estimated quarterly payments might lead to a tax refund for these individuals.

Interactive Tax Assistant

Fortunately, there is a helpful tool for individuals who have questions about their tax status. Interactive Tax Assistant, provided by the IRS, will answer your questions according to your specific circumstances. If you have to file a tax return, the tool will tell you according to your input. This tool can help you with your filing status, dependents, taxable income, credits, deductions, and other issues.

The good news is the user information will stay anonymous, and the tool will only clarify the issues according to your provided data. The assistant won’t disclose or share the data and can’t identify the person who uses that tool. Instead, the system no longer uses the information when the user exits a topic.

Some Considerations to Remind

According to the IRS, taxpayers should keep their tax returns for at least 3 years. In some exceptional cases, you might need more prolonged retention. You might even need indefinite retention in some rare cases. Always be aware of the accuracy of your return, and in the case of any errors, submit the amended return immediately. Remember that you can’t avoid your taxes, so it is wise to file your return on its due date to stay away from later trouble. Tax regulations change regularly, and it is difficult for ordinary people to keep up with the changes; therefore, getting help from tax services is always helpful.

SCL Tax Services In & Near Bronx, NY

Are you considering Bronx Tax Services? Our company is the best option. We provide professional services to our esteemed customers and do our best to keep them satisfied. Our clients are the company’s tangible assets, and we have tailored affordable packages for them that meet their expectations. A combination of experience, expertise, and the latest technologies makes us unique in the industry. Our professionals are always with you throughout tax preparation, passionate about helping you with each tax issue. You will love our top-notch services due to their uniqueness and quality. Our customer support is amicable enough to provide the best answers to your questions. We are available to help you with your tax issues, and we have enough knowledge and expertise for that.

Feel free to contact us and enjoy tax season!

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