The IRS will begin accepting electronic tax returns that day and they reminds taxpayers that should make sure they have their year end tax statements in hand and that they should keep copies of their prior year tax returns for at least three years.
GUARDIAN INSURANCE AGENCY located in Fairburn, Lagrange and Norcross, has 6 things that you need to know about taxes:
1. Find out if you have to file a federal income tax return: Not every person who receives income during the calendar year has to file a federal income tax return. There are a some factors that affect whether you have to file including your age and your filing status, how much you earned and the source of that incomes.
2. You can take advantage of tax breaks and credits even if you don’t need to file a federal income tax return.
3. If you are self employed, you need to make estimated payments. The tax system is considered “pay as you go.” If you don’t have an employer or you get paid without having federal income taxes withheld, The IRS expects you to do the work and pay up if you expect to owe more than $1,000 at tax time. This applies to the self employed (including freelancers), also to landlords, S corporation shareholders, partners in a partnership and taxpayers with significant investments. Estimated taxes must be paid quarterly. If you skip a payment or pay late, you may be subject to a penalty.
4. Even if you can’t pay your tax bill, you should file a return . Penalties apply for failure to file a return and failure to pay your tax. To reduce the penalties, be sure to file your return even if you can’t pay up. You have some options, including payment by credit card and a payment plan with IRS if you don’t have the ability to pay your entire tax bill.
5. Due dates matter. If you don’t file and pay by your due dates, you will be penalized and the interest can rise quickly. To avoid that, file your return as soon as possible even if it is past the due date. If you need to request an extension, you can do so right up to the due date.
6. You can contribute to your individual retirement account (IRA) in your filing year and make it count to reduce your tax bill for the previous tax year so long as you act by Tax Day.