Filing taxes can seem daunting, but it’s a crucial process for most individuals in the United States. This guide will break down the key steps in filing your taxes.
Key Steps in Filing
- Determine your adjusted gross income (AGI): This is your gross income minus certain deductions.
- Choose the standard deduction or itemize: Most taxpayers take the standard deduction, a fixed amount that varies by filing status. However, you might save more by itemizing if you have significant deductible expenses, such as medical expenses, mortgage interest, or charitable contributions.
- Claim deductions and credits: Deductions reduce your taxable income, while credits reduce your tax liability. Common credits include the Child Tax Credit, the Earned Income Tax Credit, and education credits.
- Calculate your tax liability: This is the amount of tax you owe based on your taxable income and tax bracket.
- Pay any taxes owed or claim your refund: If your withholding and estimated tax payments exceed your tax liability, you’ll receive a refund. If not, you must pay the difference by the tax deadline.
Important Considerations
Tax deadline: The annual deadline for filing federal income tax returns is usually April 15th.
- Extensions: If you can’t file by the deadline, use Form 4868 to request an extension. This gives you more time to file but not to pay any taxes owed.
- Record keeping: Keep copies of your tax returns and supporting documents for at least three years.
- Accuracy: Double-check all information on your return to avoid errors that could delay your refund or lead to an audit.
- Tax law changes: Tax laws can change yearly, so stay updated on any changes affecting your filing.
Filing taxes is your responsibility. One of the keys to making filing easy is being organized. FSL Tax and Accounting can help you navigate the process smoothly with the proper knowledge and preparation. Contact FSL Tax & Accounting Services today to schedule a consultation. Call 678-702-7218 or fill out the online form. Our experienced tax professionals are here to help you navigate the tax filing process.
