Tax Returns Filing

Filing Returns:

Filing your tax returns depends on certain conditions. For example, if you are a dependent or if you are still in need of money, and have not made any money during the year, then the condition requires you to file a tax return using Form 1040. Usually, this has to be done by April 15 for the preceding year's tax return. Reports on your income will be given to you by your employer and also by other financial institutions by the month of January. Further, it is important to decide on which filing status you belong to since the rate of tax and standard deduction depends on your filing status.

There are five filing status:

• Single,
  
• Married filing jointly,
  
• Married filing separately,
  
• Head of family, and
  
• Eligible widow or widower.
  

However, your status is found out on or after the last day of the year.

Electronic Filing:
Today, filing can even be done by submitting your report electronically. This great advantage in filing is provided by the IRS e-file. It is further classified in to federal and state electronic filing and can be found in almost every states and districts of Colombia. It needs only a personal computer to use this method and can be done by downloading the software through online. This further allows you to pay your taxes electronically by direct debit or credit card.

Tax Due:
Usually, it is the practice of everyone to postmark their tax return not later than April 15. Suppose if the date falls on a weekend then the time limit extended to the subsequent business day, Tuesday, April 17, for all taxpayers. As it is common with taxpayers to postpone the paying of their taxes, however, it may at times lead you into trouble if you don't pay it before the time limit. In case if you are unable to pay your taxes on time or if you don?t have enough money to pay your tax, it is wise to file an extension form rather than ignoring your taxes in total. This will save you from giving out unnecessary fine charges for the delay occurred in paying tax.

Income Tax:
It is the annual tax on income charged by either federal or by state and local governments. The most common types are the personal income tax, charged on incomes and the corporate income tax, charged on net earnings of corporations.

Alternative Minimum Tax:
It is a similar taxing system ensuring deductions to high-income taxpayers every year. Even though it is meant for high-income individuals who make wide use of tax shelters and deductions, sometimes people with low income rate are also being affected by it. The AMT is caused due to the large numbers of personal exemptions or state and local taxes paid, large numbers of varied itemized deductions or medical expenses, or with Incentive Stock Option plans.