Filing an individual tax return as a US citizen

 

Filing an individual tax return as a US citizen

 

Filing an individual tax return as a US citizen can seem daunting, but it can be straightforward if you follow these steps:

Step 1: Gather Your Documents and Information Before you start filing your tax return, make sure you have all the necessary documents and information ready. This may include:

W-2 forms: This is a statement of your earnings and taxes withheld from your employer(s) for the year. You should receive one from each employer you worked for during the tax year. (click here for details on W-2 forms)

1099 forms: This is a statement of income earned from sources other than your employer, such as freelance work or rental income. (click here for details on 1099 form)

Investment income: This includes information on any interest, dividends, or capital gains earned on investments you hold.

Deductions and credits: This includes any documents related to deductions and credits you may be eligible for, such as charitable donations, education expenses, or retirement account contributions.

Social Security Number (SSN): You will need your SSN, as well as those of any dependents you will claim on your return.

Tax ID number: If you are self-employed, you will need your Tax ID number (TIN).

Step 2: Choose Your Filing Status Your filing status determines the tax rates and deductions you are eligible for. The most common filing statuses for individual tax returns are:

Single: You are unmarried, divorced, or legally separated.

Married filing jointly: You are married and filing your tax return jointly with your spouse.

Married filing separately: You are married but filing your tax return separately from your spouse.

Head of household: You are unmarried and have dependents who live with you for more than half the year.

Qualifying widow(er): Your spouse has died within the last two years, and you have a dependent child.

Step 3: Determine Your Taxable Income Your taxable income is your total income for the year minus any deductions and exemptions you are eligible for. To determine your taxable income, you will need to:

Add up your income: This includes all sources of income, such as wages, salaries, tips, and investment income.

Subtract deductions: You can either take the standard deduction or itemize your deductions. The standard deduction is a set amount based on your filing status, while itemized deductions include things like mortgage interest, charitable donations, and medical expenses.

Subtract exemptions: You can claim exemptions for yourself, your spouse, and any dependents you have.

Step 4: Calculate Your Taxes Owed or Refund Due Once you have determined your taxable income, you can use the IRS tax tables or tax software to calculate the amount of taxes you owe. Alternatively, you can use the IRS tax calculator to estimate your taxes owed.

If your tax withholding from your employer was more than your tax liability, you will be due a refund. If your tax withholding was less than your tax liability, you will owe taxes.

Step 5: File Your Tax Return To file your tax return, you can either file electronically using tax software or paper file by mailing in a paper return. The deadline for filing your federal income tax return is typically April 15th, although the date may vary depending on the year.

You may also need to file a state income tax return, depending on where you live and work. State tax forms and deadlines may vary, so make sure to check your state's requirements.

In summary, to file an individual tax return as a US citizen, you need to gather your documents and information, choose your filing status, determine your taxable income, calculate your taxes owed or refund due, and file your tax return either electronically or by mail.

 

 

Important links:

How to File Your Federal Taxes | USAGov

About Form W-2, Wage and Tax Statement | Internal Revenue Service (irs.gov)

IRS W-2 Form 2021 - Free Download (wondershare.com)