Tax Return

One of the most common questions is who needs to file a tax return inside of the United States and how exactly does it work. Now, it is a good idea to file your tax return if you made any money, as you might qualify for refunds that can send money back to you.
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However, in general, as long as you make more than $600 throughout the course of the year, you need to file taxes.

This includes not only earned income, but income off of interest on your bank accounts and sold stock investments and anything else that is documented. Even if you are not an American citizen, you need to file a USA tax return if you are working in the country.

The process for filing your tax returns is generally straight forward. You can pick up Form 1040 from your local post office, library or print it directly from the IRS website (simply search Form 1040 in your search engine and you’ll be directed to the PDF link you can print). For most tax returns, you just fill out your name, address, Social Security or Worker ID number, then fill in your income over the course of the year. If you have questions about whether or not you qualify for specific deductions you can use the help of a tax accountant. Some of the most common deductions include American Opportunity Credit, Child Tax Credit, Earned Income Tax Credit, Making Work Pay credit and a few others.tax return

Each of these possess very specific requirements, but each is straight forward. The documentation that comes with each form should outline whether or not you qualify for it, but again, if you have specific questions about your case individually, you can ask a tax accountant and they should be able to help you out in no time.

Now, not everyone in the United States pays the same amount in taxes. People with a hire income pay a higher percentage of taxes as they are seen to be able to afford it. Generally, if you are on the fringe of one tax bracket, you want to try and push your income down so you can pay the lower amount. The tax brackets for individual taxpayers are as followed:

If you make 0-$9,225 you pay a flat 10%
If you make $9,226 – $37,450 you pay $922.50 plus 15% of the amount over $9,225
If you make $37,451 – $90,750 you pay $5,156.25 plus 25% of the amount over $37,450
If you make $90,751 – $189,300 you pay $18,481.25 plus 28% of the amount over $90,750
If you make $189,301 – $411,500 you pay $46,075.25 plus 33% of the amount over $189,300
If you make $411,501 – $413,200 you pay $119,401.25 plus 35% of the amount over $411,500
Finally, if you make $413,201 and over you pay $119,996.25 plus 39.6% of the amount over $413,200.