Filing your taxes can be a daunting task, and there are a wide variety of questions that often come to mind when thinking about their completion. Here is a compilation of some of the common questions asked during tax preparation to help ease your stress when filing:
One of the most common tax problems involves the filing status. The IRS provides five possible choices: single, married filing jointly, married filing separately, head of household and qualifying widower. As a single individual, you may be able to file as head of household or a qualifying widower if you meet the requirements
Tax Returns on a Low Budget?
Yes, you should still file your taxes even if you did not make a lot of money during the tax year. The current federal minimum requirement for a single individual is $10,300 in W-2 wages. If you are unsure what your minimum requirement is for your filing status, you can access this information on the IRS website.
What’s with the Documents?
Not having the right information can lead to make different tax problems. You will need to have all of your claimed dependents social security numbers, along with all of your documents that were mailed to you, such as W-2’s and 1099’s. In addition, anything you plan to claim as a deduction will require a form in order to complete the tax form
Claiming incorrect dependents can lead to tax problems down the road. Generally, anyone you supported by paying more than half of their living expense and lives with you, someone who is a US citizen and who made less than $4,000 in the tax year can’t be claimed by someone else. There can be some confusion, so be sure you clarify with a tax professional.
As seen through these frequently asked tax questions, there are various rules and different circumstances that can affect how you file your taxes. If you would like to ensure that everything is completed correctly, schedule a free tax consultation with Nationwide Tax Solutions.