How to File a Tax Return

A tax return is the completion of documentation that calculates an entity or individual’s income earned and determines the amount of taxes to be paid to government organizations or, potentially, back to the taxpayer. Filing taxes can be complex, but knowing how to do it correctly can save time and money.

Filing your returns on time is the best way to avoid errors. Leaving the filing until the last minute can cause mistakes that result in unnecessary penalties and may even make you miss out on a refund.

To file a tax return, you will need the following documents and information:

The first section of your return covers your taxable income. This includes wages, withholdings, unemployment income, Social Security benefits and more. You will also enter any capital gains or losses you’ve had in the year. In addition to calculating your taxable income, this section also allows you to claim deductions and credits that reduce your taxable income.

Many hourly and salaried employees have a certain percentage of their paycheck withheld each pay period for taxes. If your employer withheld too much, you’ll get a refund when you file your return. In some cases, you may qualify for so many deductions and credits that you eliminate your tax liability completely and are able to get a refund. SmartAsset’s Tax Refund Calculator takes all of these factors into consideration to show you how much you could expect to receive. You can use the calculator to estimate your refund amount to help plan ahead for savings, paying down debt or investing differently.Steuererklärung Hattingen