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All You Need To Know About Filing Your Taxes In The US

Most people dread the arrival of the tax season, as filing your taxes is an extensive and tiresome job. If you’re a student or a first-time taxpayer, then filing your taxes can feel like a humongous and scary task. Without knowledge of various taxation terms, you are likely to make errors in your tax calculation and filing. To ensure that you file your taxes correctly and avoid getting any penalties, we have compiled information on all you need to know about filing your taxes in the US.

Tax Documentss

The first step before filing your taxes is to gather all the documents that you are likely to need, during the filing process. Make sure that you have all your investment and credit documents available at hand before the #1st of January of the fiscal year.

The IRS forms that you need to file the taxes.

The W-2 form that discloses your taxes withheld by the employer.
1099-MISC form to report any expenses above $600 made during the year to nonemployees. For example, contactor, painter, etc.
Statements of the payments made under tax deductions. For example, Interest receipts for the mortgage and student loans.
If there has been a change in your name, address, marital status, or income, then you need to separate an additional form. For example, Form 8822 is for a change in address and Form SS-5 is for a change in name.

Decide the method of tax deduction

Tax deductions are expenses incurred during the year, that can be reduced from your taxable income. These tax deductions considerably reduce the tax bill that you are charged with and must be carefully calculated.

There are two types of tax deductions that a taxpayer can claim:

Standard Tax: Every taxpayer can claim standard tax deductions from their gross income. The amount set for 2019 as the standard deduction is $12200. If your itemized deductions are lower than $12200, then by claiming the standard deductions you can complete filing your taxes quickly and without hassle.
Itemized Deductions: Many tax deductions can be claimed by taxpayers for their expenses. The motto behind providing these deductions is to ease the taxpayers of excessive tax liability. So,e common tax deductions are:
Deduction on mortgage interest and student loan interest.
Deductions on contribution to healthcare accounts and retirement accounts.
Deductions offered to self-employed people like freelancers, small businesses, etc.
Deduction of money spent on charity and donations.

Choose Your Appropriate Filing Status

The standard deductions offered to people with different filing status is varying. Senior citizens and unmarried people receive a larger standard deduction when compared to single married filers. Your credit eligibility and approval for itemized tax deductions also depends heavily upon your filing status. You could be eligible to file under two different types of statuses, which is why it is essential to understand different status types and select wisely. For example, married people can with file jointly or separately.

Single: Unmarried, widowed, and divorced people can qualify as single filers.
Married, filing separately: Some people receive more tax benefits when filing separately, then you can file as a married person, filing separately. A couple could also be filing separately for some other personal or financial reasons.
Married, filing jointly: By filing jointly, you and your spouse can save a lot of money on your taxes. Filing jointly is also simpler, as you only have to file your taxes one time for both taxpayers.
Qualifying Widow(er): When your spouse dies during the tax year, you can file jointly with your dead spouse. You can use the same status, for the next two years after their death, albeit you have not gotten remarried.
Head Of Household: When an unmarried person is also managing the expenses of a child or some other dependent person, then the can qualify as head of household. The condition is, that they must be bearing more than half the expenditure of the household.

If you are eligible for two different statuses, evaluate your taxes to determine which status will lead to a lower tax bill.

Filing Your Taxes

Once you have gathered your documents, decided upon the deduction method and the taxpayer status, you can begin filling your taxes.

There are three different ways in which you can file your taxes in the US:

1. Fill out the IRS Form 1040 and mail it.

2. File your taxes electronically by using tax software.

3. Hiring a tax advisor or accountant to prepare your taxes.

Hiring a tax preparer is considered to be the most efficient and hassle-free way of filing taxes. Tax preparers have the knowledge of taxation rules, IRS forms, and regulations, and tax deductions available to taxpayers.

They can help you in proactively preparing your taxes by informing you about the various documents that you will need when the tax season begins. They can also help you invest in retirement and healthcare plans that can be used for tax deductions. They have the skills and experience required to minimize your taxes and save money.

While doing your taxes by yourself is cheaper, the chances of errors is higher. Whereas using tax software to electronically file your taxes is only recommended if you have some knowledge of the tax jargon and the IRS rules. However, for a personalized experience and to file complex taxes, a tax preparer or accountant is your best bet. If you’re running a business, are retired, or own financial assets, the help of a tax preparer can do wonders in minimizing your tax bill.

To file your taxes, you’re supposed to fill the IRS form 1040. Your tax bill will be determined when you deduct the tax deductions and credit claimed for your annual income. You will then have to calculate your tax return by deducting paid tax from the taxable income. If your tax taxes are more than your tax bill, you can apply for a tax refund. Proof of employment, income, deductions, and credit, etc. must be attached with the required IRS form.

To pay to the IRS without paying a fee, you can make a direct bank transfer or pay by check. You can also pay by your credit card, but you will be charged a fee for doing so.

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In the US the deadline for filing your taxes is 15th April. Delays in filing your taxes can lead to heavy penalties from the state. To take permission for an extension of your filing date, you need to fill out Form 4868 of the IRS. The annual interest rate charged over the outstanding tax payable amount is 5% to 6%. It is best to start preparing to file your taxes, sometime before the last date. This can help reduce a lot of the tax filing stress.

To proactively prepare to file your taxes, you must:

File taxes even if you did not make taxable income.
Keep your income and expenses related documents safely gathered at the same place so that you do not have to run around to find them at the end of the financial year.
Register for a CRA account. This will help you review your previous taxes and make smart investments and expenses. You can also make automatic deposits wth the account and quickly assess your taxes.
Take advice from a tax professional to effectively take measures that would help you reduce your tax bill. When you calculate your taxes prior to the tax season, you can make specific investments that would help you reduce your taxable income. For example, contribution to Health savings accounts, contribute to a 401K retirement plan, etc.

Guide To Filing Taxes For Non-US Citizens Living In The US And US Citizens Living Abroad

Different countries have their own tax authorities and rules. While some nations only charge taxes on income earned by people in the country, the worldwide income of citizens may be subject to taxes in others.

The tax forms to be filled and the status of filing may differ for citizens and resident aliens of a country, this is why it is essential to get information about taxes on resident aliens. Moreover, when living abroad, one needs to understand cross-border taxes and how to minimize their tax bill. The tax regulations in the country they live in will also impact their taxes.

Non-US-citizens Living In The US

Whether you’re a software developer from Asia working in the states or married to a US citizen and have moved from your country to live with your spouse, to avoid getting into trouble with the authorities you must correctly follow IRS rules for non-citizens and file your taxes on time.

You must first understand the category of non-citizen that you lie in:

1. Resident Alien

2. Nonresident Alien

The IRS conducts two tests to verify whether someone is a resident or a nonresident alien.

1. Green Card: Having a green card means that you have been allowed by the US Citizenship And Immigration services to legally live in the US.

2. Substantial Presence Test: This test is dependent upon whether you have spent enough time in the US, to be considered a resident alien. If you have been in the US for 183 days in the last three financial years and 31 days in the current financial year, then you can be called a resident alien. Your presence is only counted if you were present in the states for the entire day.

If you either pass the green card or substantial presence test, you will qualify as a resident alien.

Taxes For A US Resident Alien

A resident alien in the US is expected to follow the same tax guidelines as the citizens. Your worldwide income is taxable and must be filed. If you have a business in your native country or some part of the world, then you need to disclose the income on your US tax return. They are subject to the same tax rates and schedules as the citizens.

To pay their taxes, Resident aliens have to fill the IRS Form 1040, 1040A, 1040EZ. They can claim an exemption if a citizen, resident alien, or a nonresident alien who has lived in the US, Mexico, or Canada, is dependent on their income. They can claim the same deductions and credit that a citizen can claim from their taxable income. In case they do not have high itemized deductions, they can go for a standard deduction.

Taxes For A US Nonresident Alien

A nonresident alien is not subject to paying taxes on their worldwide income. They are expected to pay taxes only on the income that they have earned in the US if it hasn’t already been deducted at the source. IRS has no authority or will to tax nonresident aliens on the income that they earn in their country or other countries.

To file their taxes, nonresident aliens have to fille the IRS Form 1040NR, 1040NR-EZ, or 8843. They are subject to the same deductions and credit as resident aliens and US citizens.

US Citizens Living Abroad

If you have been stationed in a foreign country by your company or are willing to live and working abroad, as a US citizen you are bound by the IRS to file a return in the US for your worldwide income.

When you provide your services in a foreign country, it is counted as your income earned in that country. It does not matter whether the income was provided by an employer in a foreign country or an employer in the US.

Even if you are a resident alien and work in another country, you will be subject to disclosing your worldwide income. This rule also applies to government employees that have been transferred to a foreign country for work.

It is a misunderstanding that by filing a US tax return on your worldwide income along with paying taxes in a foreign country, you will be paying double taxes. However, this double filing is only done to ensure that the government is aware of the gross income of its citizens. Many taxpayers are unaware that if they are paying taxes in some foreign country, they can receive a foreign tax credit. This tax credit can be deducted from the tax bill of the taxpayer in their US tax return filing.

When filing taxes in two countries, you must ensure that you are disclosing the same income and expenses in both returns. If the information does not match when they are checked, you could face trouble with tax authorities.

The amount filed must be converted into US dollars, as per the ongoing exchange rate of the two currencies. You can use the yearly average of the exchange rate to ensure accuracy.

If your balance in foreign bank accounts exceeds $10000, then you need to report it while filing taxes. You must file an FBAR or Foreign Bank And Financial Accounts for the same.

Taxpayers filing taxes for the income that they earn abroad receive tax relief in the form of deductions like foreign housing exclusion, foreign earned income exclusion, individual retirement accounts, etc.

Foreign housing exclusion offers relief to taxpayers on the amount they pay for the rent of the house that the taxpayer lives in, in a foreign country. However, one must qualify to be present in the country for 330 days in the financial tax year.
Individual Retirement Account or IRA deductions are changed every year and amount to around $5000 to $6000. The IRA limit decided without deducting the foreign housing exclusion.

Citizens or resident aliens living abroad receive a 2-month extension on their filing date. Considering the last day to pay taxes in the US is 15th April, citizens living abroad can file their taxes by 15th June. However, you may be charged a penalty over delayed filing. You can also request an added extension in case the compliance rules in the country you work in are extremely different. For this extra extension, you must file IRS Form 4868 or send an Application For Extension.

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If a US citizen does not pay taxes to the IRS and has substantial back taxes in their record, then the IRS has the authority to ask the State Department to refuse to issue a passport to the individual. Moreover, they can also revoke your current passport in such a scenario. Shrugging off the IRS merely because you are not working in the country has many repercussions. It is advised that citizens living abroad, ensure that they file their taxes on time to avoid any trouble with US tax authorities.

If you are a resident or nonresident alien in the US or are a US citizen living in a foreign country, it is best to acquaint yourself with compliance rules set by the IRS. If you do not have the required knowledge of taxes to file your US tax return and need help with filing, then you can either use tax software, hire a tax prepare, or take help from the IRS website assistant.

Using tax software or hiring a professional will ease the process of managing taxes on foreign assets, financial incentives earned in a foreign country, and the income received and expenses incurred there.

When using tax software, the appropriate tax form for your filing status will automatically be selected by the software. A tax preparer or an accountant that specializes in cross-border taxes could also help you in the task. The compliance rules IRS are different from the rules imposed by tax authorities in other countries. It can be challenging to comply with both and avoid delayed filing and errors.

Tax Deductions That You Can Claim When Filing Your Taxes

A tax deduction is an amount reduced from the tax payable amount of an individual. Tax deductions are usually a part of the taxpayer’s expenses during the year. The IRS allows some tax deductions that can be removed from the taxpayer’s income, to ensure that they do not have to pay taxes on these expenditures.

There are hundreds of tax deductions listed out by the IRS, that can be claimed by the taxpayer. However, most taxpayers are unaware of the tax deductions that they can use to avoid being charged with a high ta bill. To ensure that you are paying the right amount of taxes you are liable to, we have compiled a list of various tax deductions and how to claim them.

There are two ways in which a taxpayer can claim tax deductions. Either they can claim the standard deduction set up by the IRS, or they can get separate tax deductions of their various expenses. This separate deduction is called itemizing deductions.

The taxpayer must choose the deduction method depending upon which amount is higher between the two. The higher the amount of deduction, the lower the tax bill.

Standard Deduction

A standard deduction is a saving grace offered by the IRS, to those who cannot itemize their tax return. Every one is liable to a standard deduction, whether they have any other tax deductions or not. Hence, those taxpayers who have no specific deductions, can simply claim a standard deduction and benefit from it. The processing of standard deduction claims is fast and you do not need to fill out too many forms to make the claim.

In the year 2019, the standard deduction for single tax filers was $12200. Married tax filers filing separately could claim $24400, whereas those filing together could claim $18650. The standard deductions for the year 2020 are expected to increase by $200. Senior citizens above the age of 65 receive a standard deduction that is $1300 higher than that for single filers. Hence, they can claim $13500 as a standard deduction. Whereas, a single filer who is unmarried or someone whose spouse has died can claim $13850 in deductions.

However, if your itemized deduction is higher than the standard deduction set by the IRS, you must itemize your deductions. This will be a time taking process, but you will be able to save a generous amount on your tax bill.

Itemized Deductions

Most people who have a mortgage debt or home equity loan should try to evaluate their itemized deductions. Chances are, you can save more money on itemized deductions in such a scenario. It is in your best interest to find your taxable income by trying both the claim methods separately.

If you do not have the knowledge of tax deductions that you are entitled to, then you could end up paying more than your tax liability. An accountant that specializes in taxes or a licensed tax advisor could help you determine the deductions that you can claim. You could also use taxation software and answer all the tax deduction questions that are put up to you. In the end, you will receive your tax payable amount after deducting itemized deduction, for comparison.

Ten Of The Most Common Itemized Tax Deductions

Deduction On Student Loan: If you had to finance your college or university education by taking a loan, then you could claim a tax deduction on the interest paid by you. Tax deduction on a student loan can be up to $2500. If your taxable income is $70000 or above, the deduction amount will go down.

Moreover, if you had to take this loan for your spouse, your child, or some other dependent person, then you could still claim this tax deduction.

Mortgage Deductions: Interest on the first $750000 of your mortgage debt, is subject to tax deductions. This is a relief offered to homeowners so that they can manage their credit from their income. The interest amount on the mortgage can be deducted from your gross income.

People who took mortgage before Dec 15, 2017, can get a deduction on the first $1 million of their debt.

Healthcare: If you have a Health Savings Account for unexpected medical expenses, then you can get tax deductions on your monthly contributions for the same. Moreover, taking money out of such accounts to pay medical expenses is tax-free. The contribution amount for the 2019 tax filing can be $3500.

Moreover, if a taxpayer‘s medical expenses were so high that they amount to over 7.5% of their income, then they can file for a tax deduction on medical expenses. People who are battling diseases like cancer and those who have undergone expensive medical surgery can claim this tax deduction.

Deductions For Self Employed People: Unlike people employed by various companies, self-employed people like freelancers and contractors do not have a regular source of oof income. The taxes of an employed person are paid in two parts, half by the individual and the other half by the employer. However, because self-employed people do not have an employer, they could be subject to 15.3% taxes. To relieve self-employed people from this, the Federal state allows them a tax deduction of half the taxes. This means that they pay a tax of 7.65%, just like any other employed person.

Self-employed people and small business owners that have a retirement plan from a selected list of plans, can get deductions on the contribution amount.
If you have rented a home to carry out your business activities, then you can receive a deduction on the rent paid, maintenance costs, etc.

Deduction for low-income artists: Similar to the deduction for self-employed people, if you are a performing artist then you can get some tax deductions on your work expenses. To qualify for this deduction you must be able to prove that you have performed at multiple places or events and that 10% of your income is spent on building your career a performing artist. Your income should not be more than $16000.

Deductions For Us Army Officials: Army officials that have to move their entire household, have to bear a lot of expenses during the move. Because these expenses are borne by them to follow the orders of their supervisors, the IRS offers a tax deduction on these. To claim this deduction you must fill the IRS Form 3903 and Schedule 1.
According to Schedule 1, members of the reserve forces for the military can claim deduction on their tax expenses if they had to travel for more than 100 miles for work.

Charity Deductions: If you have made donations that a foundation or organization that is exempt from taxes, then you can claim a deduction on the charity amount. Depending upon the type of donation, the deduction can be up to 20%, 30% or even 60% of your income.

Alimony Payments: Alimony payment is considered to be the income of the receiving spouse, whereas it is a tax deduction from the income of the paying spouse. If your divorce was effect before 2018, then the Alimony payments made by you can be deducted as a tax deduction. However, the rules have been changed for this deduction from the year 2019.

Deduction on property rental and side income: If you are renting your personal property like a car or some appliances, and earning a side income from it, then you can claim some deduction for expenses like fuel.

Winning At Olympics: If you have represented your country in some Olympic sport and won medals, then you receive the prize money and some money from the Olympic & Paralympic Committee. This money can be deducted from your gross income, as you earned it by bringing glory to the US.

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To claim Itemized deductions, you need to have proof of these expenses. The process of filing a tax return with itemized deductions can be hectic. There are many IRS forms to be filled and attached. By hiring an accountant to handle your taxes, you can ensure that all the relevant deductions are claimed and filed in an error-free manner.

Tax Relief; A Perk or A Necessity?

Tax is the obligation we pay to live in the civilized world. The system has established over centuries and every country has its own tax system now which may vary from country to country depending on the social and economic condition of the country. However, the system sometimes allows the taxpayers with exemptions or reliefs if they fall in a certain category or class. Tax relief is essentially the relaxation, removal or reduction of the liable tax payment that would otherwise be payable as a civic duty. The relief or otherwise called exemption can either be waved off completely or partially based on the rules established. The relief is usually allowed to promote a particular community of the sector or product to save the beneficiary from either to default or to grow. Certain medical products may get exemption from the tax to make sure its availability or an under performing sector may enjoy an exemption for a particular time period to get itself established.

The tax exemption can also be used as a tool to encourage a particular behavior or to increase spending in a specific category. For example, the charity paid or the donation made to a charitable organization which is regulated and registered may get relief from the amount payable as tax.

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There are many approaches that are adapted by the tax authorities. The exemption basically is the exception to an established rule and should not be considered as the non-existence of the rule or liability. One may argue that the reduction in the payable tax or exemption is the perk which is designed to provide unjustified benefit to the beneficiary but we have to keep in mind that the tax system, in its very nature, is a tool to establish an enabling environment for the economy. If the tax relief is not offered to anyone who may need it, then it will destroy the very fabric of the system. In the nutshell a tax system is designed for organizations, businesses and individuals to contribute for the betterment of the system by paying a predefined portion of their income they earn within the system. But sometimes the businesses or individuals need to be on the receiving end to keep contributing to the system otherwise the system will struggle to run. The tax relief is simply a tool to achieve the balance in the economic system.

Common Terms That Every Taxpayer Should Know About

If you are a working individual with an income above the taxable income decided by the IRS, then you are subject to paying annual taxes to the state. Taxes are complicated and nonpayment of taxes could get into some serious trouble with the IRS or the Internal Revenue Services. To manage your taxes efficiently, it is important to have some knowledge about commonly used taxation terms. To help you in the task, we have explained some common terms, that every taxpayer should know about.

1.Tax Relief
An incentive that decreases the amount of tax a person or business entity is liable to pay to the tax authorities, is called tax relief. Tax relief is given over a cause or due to the occurrence of some specific events. For example, the government can give tax relief to its citizens after the area has been affected by a natural disaster.

Tax relief is given to people or businesses in the form of tax deductions is given to people or businesses in the form of tax deductions, forgiveness, tax credit, etc.

Tax credit: When a taxpayer has accumulated tax credit, it is directly decreased from the tax payable amount. For example, when consumers buy environment-friendly products they often receive a tax credit. Say the credit received by them is $1000 and the tax payable is $4000. Then the amount they pay in taxes will be $3000.
Tax deductions: When a taxpayer receives tax deductions, the amount is reduced from their original taxable income. They are further taxed on the remaining amount. For example, When a person donates money for a registered charity or trust, they receive tax deductions on the same.
Tax forgiveness: If the financial condition of a taxpayer is bad and they are unable to pay their tax debt, then the state often provides tax forgiveness. This means that the taxpayer is only liable to pay a percentage of the tax liability.
For example,

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If an individual is aware of all the tax relief opportunities available to them, they can save a lot of money on tax liability.

Tax Debt Relief
When a taxpayer is in no condition to pay their taxes, the IRS provides tax debt relief. In such cases, the IRS can either choose to settle the debt and recover as much of the amount as possible or start a payment plan for the taxpayer.

A tax debt relief solution is accepted only on one of these conditions:

Doubtful amount of tax liability: This includes that it is justified by the taxpayer that the amount of tax they are liable to pay is incorrect and too high for them.
Doubt on the collectability: A taxpayer qualifies for this condition when the IRS agrees that their financial condition will not allow them to make full payment of the tax debt.
Effective Tax Administration: When the taxes are correctly calculated and the individual is capable of paying the outstanding amount in the future but will have to go through guaranteed hardships due to a certain reason, the IRS can decide to provide tax debt relief.

There are two types of debt relief options provided by the IRS. The most effective solution for a taxpayer is found, after studying their financial condition, future finances, the total amount of debt, and so on.

Setting up a Payments Plan
If the financial condition of the taxpayer is bad but manageable, then the IRS can decide to give the taxpayer more time to make the full payment. This is done by setting up a payment plan for the taxpayer. If you will be paying the outstanding amount within 120 days, then you will get a short term plan, and if you’ll need more time, then you will be given a long term payment plan. As per these payment plans, the money can be paid by check, automatically from the account, or through a debit card. If you are paying the IRS in the long term, then you will be subject to some plan setup fee.
Tax Settlement
When a taxpayer is deep into tax debt, and it is unlikely that they will be able to pay the tax authorities, the authorities can decide to settle the debt by taking only a segment of the actual liability. In order to start settlement negotiation with the IRS, one must send an Offer In Compromise or OIC to the concerned authority. A tax settlement is usually given in cases where it is evident that the taxpayer is in no condition to be able to pay the amount. The motto behind a settlement is to receive whatever amount is recoverable.

When a tax debt is settled early, the taxpayer is able to avoid liens, wage garnishments, levying of bank accounts. A tax settlement can save the taxpayer from getting penalties and paying high interest.

OIC or Offer In Compromise: Studies show that people that use an Offer In Compromise usually end up paying less than 20% of their actual tax amount. IRS will only accept an OIC if the taxpayer is in no financial condition to make the payment, even when it is broken down into installments. You can find the instructions for an OIC in the 656-B form by IRS.

● For an OIC to work, both you and the IRS must agree that your tax debt cannot be paid with your income. IRS will only agree to this if you do not have enough assets that can be seized by the IRS for full payment of your tax debt.
● Once the IRS agrees, you can begin negotiations. At the negotiations, the highest amount that can be paid by you is determined.
● If the IRS agrees with the amount, then after the settlement, tax debt is considered to be fully paid. You no more owe any money to the tax authorities.

Sending an OIC is a complex task and any omissions in the subjection can lead to a rejection of OIC by tax authorities. When sending an OIC, taking the help of a professional accountant can help you avoid errors and ensure that the settlement proceeds quickly.

Back Taxes
Back Taxes are those taxes that are yet to be paid by the taxpayer. These taxes are subject to penalties and interest. The IRS can collect back taxes for 10 years from the taxpayer. The IRS has many programs to deal with the collection of tax from taxpayers of varying financial conditions. It includes the fresh start program, installment agreement, and tax settlement.

When you have back taxes, the IRS has the right to recover the money, in many different ways. One of the most effective ways to recover back taxes is wage garnishment.

IRS Wage Garnishment: When you have unpaid taxes, then the IRS has the authority to instruct a third-party to deduct money from your wages. The third-party involved in this process is usually the employer of the taxpayer. By deducting a specific amount of money from the tax debtors account, the IRS recovers the unpaid taxes. This is called IRS wage garnishment. The reason behind IRS wage garnishment is to prevent the taxpayer from withdrawing the salary and spending it on miscellaneous tasks instead of clearing their debt.

Other than garnishing your wages, the IRS also has the authority to levy bank accounts and even seize your assets. Wage garnishment can also be done for nonpayment of child support, bankruptcy, and defaulted student loans.

Filing Taxes
Every individual or business, whose income is above the taxable income is required to file their taxes every year. The tax liability of a taxpayer is determined after they have filed their taxes with correct information of their income. Moreover, when you file a tax return, it is calculated whether you owe more tax to the state then you’ve already paid, or you could either get a tax refund pertaining to the tax deductions.

There are three ways to file your taxes:

IRS form: By filling information about your income in Form 1040, provided by IRS, you can file your taxes manually. However, without the knowledge of taxation and tax deductions, you could end up paying more money than your tax liability.
Tax Software: A tax software is detailed and asks multiple questions from the taxpayer, to efficiently evaluate their tax liability. It can even electronically file Form 1040 for you.
Professional accountant: Accountants and tax preparers have knowledge of various tax benefits, rules, and penalties. They can help you evaluate your tax liability, focusing on legally minimizing your taxes and ensuring on-time filing.

If you do not have the knowledge required to efficiently manage your taxes, it is in your best interest to hire a professional accountant. A professional accountant that specializes in taxation, can help you in minimizing your tax liability and filing of your taxes, free of errors. Moreover, if you are unable to carry the financial burden of your taxes, then they can help you by negotiating the payment amount with the concerned authority or IRS.

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