When filing taxes for the first time, you may not know about going about it. Most people would be excited, as they know a tax refund is waiting. However, others would be worried about the audit or paying a tax bill.
Find below some important aspects you should be aware of to file the return independently. It would provide you adequate knowledge about the San Antonio tax preparation process.
To get a tax refund, you need to file an income tax return
If you were single and earning less than $12000 per annum, you are not required to file a federal income tax return. However, if you qualify for an education tax credit or have a job and the employer withheld money from the paycheck for income taxes, you could become eligible for a tax refund. It implies having money back in your pocket for filing tax returns. It does not imply that owe taxed, but you would not get the refund if you do not submit a tax return.
You are required to report all your income
You could be earning income as a college student in various ways. For filing tax returns, you are required to report all your income. Rest assured that taxable income comes from salaries or wages. It would also come from tips or money earned from a side-business. In most cases, your scholarship is also deemed taxable. Do not fret, as you do not have to pay taxes on every dollar you earn. The income tax you owe would be based on your total income deducting any allowable amount.
Rest assured that deductions have been specific expenses allowed by the IRS to the taxpayers. These deductions would be subtracted from the yearly income. After deductions have been made, the remaining income or the taxable income would be taxed at a determined rate. Nearly all taxpayers have been eligible for taking a standard deduction.
Dependents cannot claim education tax credits
When you file the tax return, you would be inquired about anyone claiming you to be dependent. If you were dependent, you should submit a tax return. However, your dependent status would restrict your eligible tax credits. Ensure that you know anyone else who claims you before you fill out your tax return.
E-file your taxes made simple
E-file your taxes for instant submission of your tax returns. There is no risk involved of the tax returns losing in the mail. There would be fewer simple errors, as the program handles the return for you.