As a taxpayer, you have certain obligations you must fulfill each year regarding filing taxes. These general requirements include determining your filing status, choosing the proper tax forms, keeping good records, filing on time, and paying any taxes due to avoid penalties and interest charges.
Your filing status
It helps determine your tax bracket and which forms you need to file. The main options are single, married filing jointly, married filing separately, head of household, qualifying widow(er). Choose the status that best fits your situation.
The two most common forms for personal income tax returns are the 1040 and 1040-SR (for seniors). Form 1040 is used by most taxpayers to report income, calculate tax owed or refund due, and determine any additional amounts owed or excess refund. Schedule 1 is also often needed to report additional income sources like business, investments, capital gains or self-employment income.
It is important to maintain records of all income, deductions, credits, estimated tax payments, and anything else affecting your tax liability. Keep 1099, 1098 and W-2 forms issued to you; records of deductions/credits claimed; income/expense records for any businesses; and receipts/bills for large purchases. Good records make filing taxes quicker and easier and help ensure you pay the correct amount you owe.
Federal income tax returns
They are due April 15 each year for most taxpayers. If you cannot file by the deadline, you can request an automatic 6-month extension by filing IRS Form 4868. Filing for an extension gives you more time to file but not more time to pay any taxes due. Interest and possibly penalties still apply to tax not paid by the original deadline. It is best to file for an extension only if absolutely needed.
In addition to federal returns, you may need to file state income tax returns, depending on which state you live in. State deadlines are often the same as April 15 but some vary. Check with your state tax authority for the specific deadline. Also, some localities like cities or counties require additional tax return filings. Do some research to determine all filing obligations you may have based on where you reside.
Failure to file a required return or pay the total amount of tax due by the deadline results in failure-to-pay and failure-to-file penalties, as well as interest charges. The sooner you take corrective action by filing any delinquent returns and paying outstanding liabilities, the lower the penalties and interest will be. Let the IRS or state tax authority know as soon as possible if you discover any missed or delinquent filings.
