The Tax season is on and it comes as no surprise that you would want to be on top of everything. With taxes, the more you know, the better off you are.
Here is a list of things you must know about taxes.
Not Everyone Has to File a Federal Income Tax Return
Not every person who receives an income has to file a federal income tax return. It all depends on your annual income, the source of that income, your filing status and your age.
You can also take advantage of tax credits, which are dollar for dollar reductions in your tax due, without having to file a federal income tax return.
You Don’t Need to Itemize to Take Advantage of Certain Deductions
IRS allows for certain deductions that don’t need to be itemized. These include Student loan interest deduction, IRA deduction and moving expenses deduction.
You May Have to Make Estimated Payments
If you are self-employed, are a landlord or a partner in a partnership, you are expected to make quarterly payments of your estimated taxes. Skipping a payment or paying late incurs a penalty. You are expected to pay up if you owe more than $1000 dollars at tax time.
Due Dates Matter
You should be punctual about filing as well as making payments to avoid incurring heavy fines and penalties.
For payments, IRS has a statute of limitations, but for filing, there is no such thing. It means that IRS can generally assess and collect at any time.
Tax Help MD
At Tax Help MD, our tax experts have the knowledge to deal with your specific tax problems. Want to make the tax season go breezing by? Dial 888-632-4506 for free consultation and advice.