Filing Federal Taxes
When the beginning of each new year comes around, everyone knows it tax time. April 15 is the official deadline for filing income taxes, although you can file earlier. Anyone who had income for the year needs to file a tax return, as long as the amount is over a preset minimum. This minimum amount varies depending on your filing status, so if you aren't sure, check the IRS guidelines to see where you fall. It may be to your benefit to file anyway, since it's the only way you can get any refund that may be owed to you. In this article, we will outline three options regarding filing federal taxes with the IRS
Filing Paper Form
The most basic way to pay one's federal taxes is to fill out the appropriate paper form from the IRS. Once completed and checked for accuracy, the form can be mailed in. Mailing paper forms in to the IRS is the original and perhaps most basic way of filing taxes. All that is required is the correct IRS form, a pen, and postage. The major benefit of using paper forms over methods is its elegance and simplicity. No technical or special computer skills are required. There is a downside to filing federal
taxes with paper forms, however. Old-fashioned mailed paper documents take time to reach the IRS. Once received, it takes additional time for the documents to be read and reviewed. As a result, a federal tax return which is filed using paper documents may take longer for the IRS to process than those filed electronically.
Electronic Filing Federal Taxes
Over the last decade, however, a new way of filing federal taxes has emerged. Electronic filing is now accepted by the IRS. There are a number of different electronic filing programs. For regular wage earning individuals, the Free File system allows taxpayers to file and pay their federal income taxes online free of charge. Electronic filing of federal taxes with the IRS is not just limited to payment of individual income taxes. Other types of taxpaying entities � such as private business, corporations, estates, and trusts - may use the IRS e-file system to file a myriad of their respective federal taxes.
Finally, the United States Treasury Department has set up a system to accept tax payments over the internet. The Electronic Federal Tax Payment System (EFTPS) allows all types of taxpayers to pay for all different types of federal taxes � everything from income tax to quarterly estimates.
Forms to Use
There comes a time in every taxpayers life when he or she "graduates" from the 1040-EZ to the 1040 or 1040-A. If you're not sure whether to itemize personal tax deductions ask yourself this: Are you ready to pass up a tax cut? Because if you have enough expenses in the right areas, you can probably save yourself money by itemizing allowable federal tax deductions. The key is figuring out if your expenses in these categories add up to more than the standard allowance. If you paid mortgage interest, property taxes, medical expenses and/or made charitable donations, chances are you'll come out ahead when filing income taxes if you itemize rather than take the standard deduction.
Filing Federal Taxes-CPA Tax Professional
Perhaps the best way to file your taxes is to have an experienced tax professional do it for you. By hiring a CPA to file your taxes, you can avoid all the hassle and stress. Not only are accountants held accountable for accuracy and dealing with the IRS in case of problems, they also know the tax code. Often times, a tax professional will be able to find savings and deductions which most individuals are not aware of. When you hire a CPA tax professional, you are assured that filing federal taxes will be done properly.