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If you are an US citizen by birth or naturalization you have to determine
whether you need to pay federal income tax and file the tax as per the rules.
In case your income is very low you may be exempt unless you are receiving
certain kinds of income like a pension. In depth information on federal tax
returns is at http://www.irs.gov/individuals/article/0,,id=96623,00.html .
The federal tax return form can be submitted electronically or by mail.
Read the tax instruction booklet pertaining to form 1040. The IRS has put
in place e-file programs which are fast and convenient and you will not have
to worry about the mail going astray. The IRS website offers free e-filing.
The basics of a federal tax return are:
1. First find out if you need to file a federal tax return.
2. If yes, then make sure you use the right forms. Start with Form 1040.
Details of which forms are to be used when are clearly given in the Internal
Revenue Service website. A w-2 or 1099MISC are needed to accurately file a
Federal tax return. All tax payers are scheduled to receive their forms before
Feb 15th. Not attaching the correct forms will cuase delays in processing
of tax returns.
3. Determine clearly your federal tax filing status. Information on whether
or not you need to file federal tax returns is given at
http://www.irs.gov/individuals/article/0,,id=96623,00.html .
4. Calculate your taxable income in accordance with current rules. If in doubt
consult a tax expert. All check payments must be made out to the “United States Treasury.”
5. Use online tools like a federal tax estimator to calculate tax payable.
Laws chage each year so stay updated with the most current laws. The IRS site has
all the information pertaining to tax filing.
6. Log on to the internet and get aquatinted with tax rates for the current year.
These will give
7. Use the convenience of e-filing and pay tax online through secured
channels using your credit card. There is a system known as the Electronic Federal
Tax Payment System, EFTPS which allows tax payers to schedule recurring payments
directly from their bank accounts.
8. Be systematic in keeping records and file according to rules. Always attach
all documents required and if you are mailing the Federal Tax Return then use the
sticker provided by the IRS.
Tax returns need not be a burden if you take the time to find out how it is to
be done. Many individuals file their own returns. Step by step instructions and
guidelines are given in the IRs booklets and website.
Be organized and don’t wait until the last moment to file your taxes. Throughout
the year maintain records and be disciplined enough to spare a few hours each month
or quarter to keep tax related paper filing and records up to date. With the advent
of computers tax filing has become easy, you just need to get the appropriate software
and all your troubles will be minimized.
Federal taxes can be handled easily if you are organized and disciplined.
About Author
Barry Allen is a freelance writer for Online Tax
Firm, the premier website to find tax, return tax, tax software, free tax filing, sales tax,
services tax,income tax, property tax and many more.
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