Do you file the personal income tax every year? If it’s a NO then, start from today!
Because even if you are exempted from paying tax because of the low income, still you must file an annual return with IRS in order to claim any refund of the tax paid earlier. Furthermore, if you have simple finances then, paying the tax is even easier for you but if you have a complex financial situation then, you would need advice from a certified and experienced Illinois tax lawyer.
To know more about how to file your income tax return in Illinois, follow the steps given below:
Find out If You Have to File a Tax Return
With most of the people filing income taxes, there are earners who certainly have low income and don’t fall under any of the paid tax slabs. If you are also exempted from paying taxes, still don’t ignore the filing of the annual return.
Just remember that whatever be your case, you must file the tax return after checking all the Internal Revenue Service’s requirements.
Determine Your Filing Status
According to Federal Tax filing status, there are mainly five ranks, which include: single, married filing separately, married filing jointly, widow(er) with dependent child, and head of the household. Here, it’s important to note that you may qualify for more than one rank but you need to file under one status only.
Tip: File under the status, which allows you to pay the least amount of tax.
Figure Your Credits and Taxes
In order to check whether you are eligible for the credits and deductions, first add up all your income sources as interest earned from the bank, investment, and pension or retirement account. Next, check the policy list or consult the Illinois tax lawyer for avoiding any tax-related complications, at later stages.
Compute your Personal Exemptions and Dependants
It’s pivotal to understand the rules related to exemptions and claiming dependents because the IRS allows claiming the deductions from you and your dependents’ taxable income. Therefore, for the maximum personal exemption, you must calculate it.
Address Your Income Tax for the Tax Year
To determine the annual income, you can review the wage and tax statements. However, if you are working on more than one job during the year, there are chances that the statement may be complicated for you. Moreover, the self-employed people need to pay extra attention and time, while filing for the tax process. In fact, they are advised to consult the professional tax lawyer, in this regard.
E-File or Paper Forms Method of Filing Tax
These days, people have two ways of filing their taxes in Illinois. First is by signing the paper and the other way is, e-file that is electronically. The former method is quite simple, where an individual fills and sign the form and submit it to the respective office. While in the latter method, you must download the filled form and take its print for signing and submitting it to the authorized party.
Note: You can access tax preparation software or find an authorized IRS e-file provider to fill your tax forms.
Although tax filing can be stressful yet having the right guidance like of the Illinois tax lawyer can make the process look simple and risk-free.