Individual tax returns are the ones that are filed by the married or single taxpayers, either they do it separately or they combine them and file them as joint taxes. The form used for this type of tax is 1040. The tax is filed by anyone who is earning certain amount of money per year. This constitutes that how much they owe money to the government or that the government is going to provide with the returns. It is important that in order to make sure that either you are filing individual taxes or the corporate you take very strict measures that they are done with very accuracy.
The penalty of not filing taxes or providing wrong information is very high and is considered as fraudulent. Keeping this in mind you can choose one of the two types of professionals that can help you:
Tax accountants are the ones that are specialized in their field in order to make sure that they can help you out with any tax situation that you might find yourself in. not always it is possible that you are able to understand the confusing tax form. Or you might have gotten something changed in your situation from last year that needs a specialized attention. This all calls for the help of the tax accountant. He/she can help you out with making right decisions and also clarify the situation that makes sure you are not under any sort of tax debt that in ong term can hurt your credibility and also put you in compromised situation.
Just as accountants you might find a lot of tax preparers that can help you in the tight situations of taxations. The only right way to find out the right person to prepare your tax papers is firstly through referrals and secondly by trial and errors.
When it comes to individual tax preparation, the method that is gaining popularity these days is to file taxes online. The individual taxes are a lot less complicated than corporate taxes or business taxes and they just require you to provide the base information that makes it very easy to file these taxes.
1040 form:
As discussed earlier that for individual taxes are to be filed on a particular form known as 1040, let’s have a closer look at it. Now, every person although filing tax individually, they still have the different circumstances and this means they have to choose the form that suits their status, here are a few types of the form:
The most simple form of tax form is this one and it can be used by the individuals who are single or married and filing jointly, keeping in mind that they are making less than $100,000 and also do not have any dependents.
The other type of the 1040 form that helps people out who do not fit the extremities of the above form is the form 1040A. This form help people who are making less than $100,000 but do have the deductibles or in other words have dependents.
The above two forms are meant exclusively for the residents of the united states, but what about the non-resident aliens who are engaged in business and trade in United States? Well, for them the 1040NR is the suitable form.
The question arises that if the tax filing is a tricky and confusing, what to do if a person forgot some important point and needs to add on to the form? In this case, the form 1040X is of great help as it can help add the information to the previous tax forms and to make sure that the person is not held accountable for the unfortunate mistakes.
Knowing all the types, all you need to do is keep your social security number, your job information and the W-2 form, if eligible with you when filing the individual taxes. The tax preparation doesn’t have to be a nuisance or an inconvenience which all requires from you is to make yourself knowledgeable about all the aspects that can clear up the confusion and also make it easy for you to get your rightful returns.
