A discussion of various issues in filing your taxes is given below,
some of the subjects are:
- Electronic Filing
- Amended Returns
- Filing an Extension
- Electronic Filing of Extensions
- Installment Agreement
- Record Keeping
- Getting Copies of Past Tax Returns
- Estimated Taxes
- Estimated Tax Penalty
- $3 Presidential Election Campaign
- Change of Address
- Deadline for Sending Forms W-2
Electronic Filing
Electronic filing or E-file reduces the time it takes to get your tax refund,
but you must have a valid Social Security number for every person included
on the return. If you qualify to E-file, you may also be able to get a loan
on your tax refund in as little as one day by requesting a Refund Anticipation
Loan. Click here to learn about IRS E-file.
Amended Returns
What happens if you have filed a tax return and later realize that you have
omitted income or overlooked some deductions? You can amend your return by
filing Form 1040X, Amended U.S. Individual Income Tax Return. Generally,
you must file your amended return within three years after the date you filed
your original return or two years after paying taxes, whichever is later.
You cannot change your filing status from Married Filing Jointly to Married
Filing Separately after the due date of the original return.
Filing an Extension
Are you thinking of filing an extension? By filing an extension, you postpone
filing your return until August 15. However, if you do not pay the tax due
by April 15, you will accrue penalty and interest charges. Complete Form
4868, Application for Automatic Extension of Time to File U.S. Individual
Income Tax Return, to file for a four-month extension.
Electronic Filing of Extensions
The IRS offers electronic filing of extension applications. The IRS will process
Form 4868 through April 15. By filing an extension, you postpone the filing
date of your return until August 15; however, any tax due on the return will
be subject to interest and penalties if not paid by April 15.
Installment Agreement
If you owe but cannot pay your full tax liability by April 15, you should consider
the IRS installment plan. To request an installment agreement, complete Form
9465, Installment Agreement Request, and attach it to the front of your tax
return. If the IRS approves the request, you will be charged a fee and interest
on any unpaid balance. You should make the payments large enough so that
the balance due will be paid off by the due date of your next return.
Record Keeping
It is a good idea to keep your previous tax returns, as well as other important
documents that have affected your income and deductions, for at least three
years. If you need a copy of a prior-year return, you can obtain it for a
fee from the IRS by filing Form 4506, Request for Copy of Tax Return.
Getting Copies of Past Tax Returns
If you are buying a home, your mortgage banker may ask for copies of several
prior years' tax returns. If you cannot locate them, file Form 4506 with
the IRS immediately. For a fee, the IRS will mail you copies of your past
returns. This can take up to 60 calendar days.
Estimated Taxes
Taxpayers who expect to owe at least $1,000 in taxes after subtracting withholding
and credits are usually required to pay estimated quarterly taxes. For estimated
tax purposes, the year is divided into four payment periods. Payments are
generally due on April 15, June 15, September 15, and January 15 of the next
year.
Estimated Tax Penalty
If you did not pay enough tax either through withholding or by making estimated
tax payments, you will have an underpayment of estimated tax and you may
have to pay a penalty. Generally, there will be no penalty for underpayment
unless the amount you is $1,000 or more.
$3 Presidential Election Campaign
Do you usually mark the 'Yes' or the 'No' check box that asks you if you would
like to contribute $3 to the Presidential Election Campaign? If you mark "Yes," it
will not change the tax you pay or the refund you will receive. This fund
helps pay the expenses of presidential election campaigns. The fund reduces
candidate dependence on contributions from individuals and groups and provides
a more equal financial balance in the general election.
Change of Address
Are you planning a move before the end of the year? The IRS has its own official
change-of- address form, Form 8822, Change of Address. If you complete and
mail this form to the appropriate IRS Service Center, you should receive
your tax booklet at your new address.
Deadline for Sending Forms W-2
Generally, the IRS requires employers to mail Forms W-2, Wage and Tax Statement,
to their employees on or before January 31. For tax-year 2005, the required
mailing date was February 2, 2005. If you do not receive a Form W-2 within
a reasonable number of days from February 2, 2005, you should contact your
employer. If a Form W-2 is not provided in a reasonable time, you may use
payroll stubs to determine the income from that employer for income tax purposes. |