What taxpayers should consider when determining if they need to file
As people prepare to file their taxes, there are things to be considered. Taxpayers will want to determine if they need to file and the best way to do it.
For the tax year 2018, all individual taxpayers will file using the new Form 1040. Forms 1040A and 1040EZ are no longer available. Taxpayers who previously filed these forms will now file Form 1040.
The new Form 1040 uses a “building block” approach allowing individuals to add only the schedules they need to their 2018 federal tax return. Taxpayers with more complicated returns will need to complete one or more of the new Form 1040 Schedules. This group of taxpayers includes those who claim certain deductions or credits, or who owe additional taxes.
Individuals who filed their federal tax return electronically last year may not notice any changes, as the tax return preparation software will automatically use their answers to the tax questions to complete the Form 1040 and any needed schedules.
Here are three more things for people to keep in mind as they prepare to file their taxes:
- Who is required to file? In most cases, income, filing status, and age determine if a taxpayer must file a tax return. Other rules may apply if the taxpayer is self-employed or if they are a dependent of another person. For example, if a taxpayer is single and younger than age 65, they must file if their income was at least $12,000. There are other instances when a taxpayer must file. Taxpayers can visit gov/filing for more information.
- Filing to get a refund. Even if a taxpayer doesn’t have to file, they should consider filing a tax return if they can get money back. If a taxpayer answers “yes” to any of these questions, they could be due to a refund:
a. Did my employer withhold federal income tax from my pay?
b. Did I make estimated tax payments?
c. Did I overpay on my prior year’s tax return and have it applied to the current year?
d. Am I eligible for certain refundable credits such as the earned income tax credit
- Taxpayers can file for free using IRS Free File, but those who choose assistance with the preparation and filing of returns, selecting the correct tax preparation is important. The preparers at Save Expat Tax have over 25 years of experience and are knowledgeable with both the domestic and international rules of taxation.
Save Expat Tax offers completely free online consultation over emails. #gogreen
All taxpayers should keep a copy of their tax return. Taxpayers using a software product for the first time may need their adjusted gross income amount from their prior-year tax return to verify their identity. Taxpayers can learn more about how to verify their identity and electronically sign tax returns at Validating Your Electronically Filed Tax Return.
Contact us for your free consultation.
Source: IRS Official Website