Over 750 Million Tax Liability Removed from Our Clients
Filing Your Tax Return LifeBack Tax
If you still have yet to file your income tax returns for the 2018 tax year, we recommend doing so as soon as possible. Filing your tax return on time is the best way to avoid owing late penalties and interest on past due taxes. If you are unable to pay your full balance, we still recommend filing a return on time in order to avoid getting hit by late-filing penalties.
Depending on your income level, you may be required to file a tax return, even if you will not owe taxes. Additionally, even if you are not required to file, you may still want to file a tax return, especially if you expect to receive a tax refund. Both federal and state tax agencies require taxpayers to file a return in order to claim a tax refund. The deadline for federal and most state 2018 income tax returns is April 15, 2019.
Federal and most state income taxes are applied using a progressive tax system, which means that higher income earners pay higher percentages of tax overall than lower income earners. How much you pay in taxes each year depends partly on your filing status: single, married filing jointly, married filing separately, or head of household. Based on filing status and your total income level, each part of your income is taxed at a different rate. If you live in Alaska, Florida, Nevada, South Dakota, Texas, Washington, or Wyoming, you will not need to pay state income tax.
Unlike past years, all taxpayers may file their 2018 federal income taxes using the standard Form 1040. Depending on your income reporting circumstances, your return may also include various tax schedules for additional information as needed. If you are e-filing your taxes, most tax programs automatically include any required forms and schedules in your return.
When filing your tax return, you will need to report any taxable income that you received during the tax year. This not only includes earned income such as wages, salaries, and tips, as well as any fringe benefits, but also income from sources such as interest, dividends, stock options, and some pensions, among others. Self-employed taxpayers will need to report their business income and expenses using Schedule C. For ease of filing, most states calculate your state taxable income based on your federal adjusted gross income (AGI), found on line 7 of your Form 1040.
For income earned from employment, most individual taxpayers pay their taxes throughout the year by having part of each paycheck withheld by their employer and paid to the government. The W-2 form provided by your employer serves as a record of your employment compensation and tax withholding. (Note that if you had multiple employers in 2018, you should have received a Form W-2 from each employer.) Form 1099-MISC serves a similar purpose for income earned as a non-employee, such as self-employed taxpayers or contractors.
For income from interest or dividends, you can find the necessary information on the Form 1099-INT (for interest) or Form 1099-DIV (for dividends) provided by your bank or financial institution. Other 1099 forms exist for providing information on other types of taxable income. Make sure to have all tax documents on hand when filing your return. If you are filing your federal return by mail, your return should include any W-2s and 1099s as proof of tax withholding.
Deductions and Credits
A tax deduction doesn't directly decrease how much you pay in taxes. Instead, it reduces your taxable income, which results in a lower tax liability. You may choose to either take a standard deduction or claim itemized deductions. A standard deduction reduces your taxable income by a set amount, while itemized deductions reduce taxable income based on certain expenses, such as medical and dental expenses or charitable donations.
Due to recent tax reform legislation, many itemized deductions were limited or eliminated, while the size of standard deduction was increased. Many taxpayers who itemized their tax deductions in the past may instead benefit more from a standard deduction on their federal 2018 tax return. Note that states have their own rules regarding which types of deductions may be claimed on state income tax.
Unlike deductions, tax credits do directly decrease how much you owe in taxes. Some tax credits are "refundable", meaning that they can reduce your tax liability below zero. If you claim a refundable credit that is greater than what you owe in taxes, you can receive a tax refund. Non-refundable tax credits cannot reduce your tax liability below zero. Two common federal tax credits for individuals are the Earned Income Tax Credit (EITC), offered to eligible low-income earners; and the Child Tax Credit (CTC), offered to eligible taxpayers with children under 17. Many states also offer their own version of the Earned Income Tax Credit on state taxes.
After accounting for deductions, credits, and withholding, you can calculate your balance and determine whether you are due a refund, or if you owe taxes. If you are due a refund, you can opt to receive your tax refund via direct deposit, or as a mailed check. If you wish to receive your refund by mail, note that refund checks may take about 6 to 8 weeks to arrive after filing your return.
If you owe taxes, the IRS and most state tax authorities accept payments through direct debit, by credit or debit card, or with a check in the mail. If you are unable to pay your taxes in full, you may be able to enter an installment agreement in order to pay your balance over time.
Please contact us at LifeBack Tax if you require further assistance with your federal or state income taxes.
Your Team of Tax Experts standing by to help you resolve your Tax Problems. Fast and Affordable.
You won't be alone, purchasing our service, satisfaction is guaranteed, we really care about you and tax problems.
Fast and Reliable
The LifeBack Tax work fast, with hundreds of satisfied customers the choice for your tax problem is simple.
With a simple 100% free consultation you could get started today. You satisfaction is 100% Guaranteed!