Income Tax Filing Homework Help

Meaning of Income tax

When a person earns money then, government takes a share of that income in the form of taxes which is being termed as income tax. This is being taken by government for providing general utility services to the people. Income tax is required to be paid by each and every person and for this, the government has created IRS for ensuring that, taxes are being collected and paid in a proper way.

Federal Income Tax System

Federal income tax system is a system of government wherein, taxes are being levied and collected from people. There are various kinds of taxes which are being collected by the government from the people. The taxes include income taxes, payroll taxes, corporate income taxes, social security taxes, and excise rates etc. The federal income tax is progressive in nature. Here, higher the income of a person, higher is the taxes which are being imposed on the person being involved.

Internal Revenue System

Internal revenue system in the United States of America works for the purpose of providing direction from Commissioner of Internal Revenue Services. It has a website and the people being involved can contact it by way of usage of the website being provided. IRS is basically being used by tax payers for ensuring that, income tax payment and filing tasks are being carried out.

Why do we deposit Income Tax? What is filing taxes and why?

Taxes are being paid for ensuring that the government continues to provide various facilities to us. The general utility services are being provided by the government such as public transport, healthcare, education etc. The taxes are being deposited for the benefit of the people of the country in the form of various facilities.

What is Income Tax Return? What is it return? What is the meaning of Income Tax Return?

The details of income and expenditure of a particular person are being provided in income tax return of the person. The income tax return is being used by the people for the purpose of providing details of the income earned by them and the taxes which are required to be paid by the person.

What is State Tax Return?

The people are required to pay taxes at two levels. One of the levels is state level and another level is considered as federal level. The people have to ensure that they are being providing details of their income to state as well as to the center. There is an important provision regarding state return that a person who is being paying state taxes has the option to claim rebate of the same at the time of paying federal taxes.

What is Income Tax Bracket? How many Tax brackets are there?

A person has to make payment of taxes according to the slabs being made. There are total of 8 slabs in the federal tax system. The tax systems are being used by the people for ensuring that they are being making payment of taxes.

Income tax Rate in California

Tax rates applicable in the United States can be summarized in the table given below:

Table 1.1: 2015 Tax Table

Taxable Corporate Income	Corporate Tax Rate
$0- $49,999	15%
$50,000- $74,999	25%
$75,000- $99,999	34%
$1,00,000- $3,34,999	39%
$3,35,000- $99,99,999	34%
$100,00,000- $1,49,99,999	35%
$1,50,00,000- $1,83,33,332	38%
$1,83,33,333 and over	39%

On the basis of above table, it can be said that, the tax rates are progressive in the United States of America. A person earning higher level of income would be required to make payment of higher level of taxes.

California Tax Brackets

Income Slab	Amount of Tax
0 - 8,015	1%
8,015 - 19,001	80.15 plus 2% of amount over 8,015
19,001 - 29,989	299.87 plus 4% of amount over 19,001
29,989 - 41,629	739.39 plus 6% of amount over 29,989
41,629 - 52,612	1,437.79 plus 8% of amount over 41,629
52,612 - 2,68,750	2,316.43 plus 9.3% of amount over 52,612
2,68,750 - 3,22,499	22,417.26 plus 10.3% of amount over 2,68,750
3,22,499 - 5,37,498	27,953.41 plus 11.3% of amount over 3,22,499
5,37,498 and above	52,248.3 plus 12.3% of amount over 5,37,498

What is the minimum amount of income to file taxes? How much do you have to make before you have to file taxes?

The government has identified a slab regarding the minimum amount for which the person has to make filing of income tax return. The current slabs in the country are being provided below.

Filing Status

Age of Taxpayer

Minimum Income to File a Return

Single

Under 65

65 or older

$10,350

$11,900

Married filing return jointly

Under 65 (both spouses)

65 or older (one spouse or both spouses)

$20,700

$21,950

What is the procedure for filing tax? How can I do my taxes? What is filing a Tax Return?

If a person has to pay taxes then, it is essential for him to make filing of the return. There are certain steps to be taken by the person for the purpose of ensuring that, returns are being filed by him in the area of his working. The individuals can file returns either electronically or physically. If a person files physically then, he has to download the form, fill it, sign it and then sent it to a particular address. On the other hand, in case of electronic filing, the details are being mentioned below.

E-Filing

E-filing option is being given to the individuals for ensuring that they are being filing their income tax returns. For filing of returns, the individuals can either take assistance of third party software or they can also move forward towards authorized IRS E-filing provider. The benefit of e-filing is that the person would be in the position to ensure that he obtains quicker refund

What are Income Tax forms? What is the 1040 Tax form? How do you get your 1040? Where do you get a tax form?

There are certain kinds of income tax forms being available to the people. The income tax forms include forms in the name of 1040 series. There are different forms for different purposes and the people have to ensure that they are being using those forms for ensuring that, their overall tasks are being carried out well in the course of filing up of the returns in a proper and appropriate way.

W9 Form 2016

This form is being used as a request for tax payer identification number and certification. This form is being used by a person who is being involved in preparation of return to provide information to the income tax department. This form is required to be kept for verification purposes for ensuring that, overall tasks are being carried out well and there are no issues arising in the area of working.

Income Tax Preparation

Income tax preparation is the process of preparation of income tax returns in a way that, all the incomes and expenditures are being correctly accounted for and accurate income of the person is being identified in the area of doing the working. The preparation of income tax can be carried out by the people by certain ways. One of the ways is physical preparation of income tax returns and another way of doing the preparation is online preparation. Both these methods are crucial and help in the preparation of returns.

Tax Preparer

Tax preparer is the person who is being involved in ensuring that he provides assistance in the course of preparation of income tax returns. A person has to clear exam to ensure that, he becomes a registered income tax preparer and provides assistance to the people in the course of preparing the returns. A person has to obtain certificate before he could move forward and become a return preparer.

What do I need to do to become a tax preparer?

To ensure that, a person becomes a tax preparer, he has to ensure that, he fulfills certain educational requirements along with training requirements. On fulfilling the conditions a person can make application and obtain certification to become PTIN. After this, the person can start working as an income tax preparer.

Liberty Tax

Liberty tax is a particular kind of tax preparation service which works towards providing support services to the people who are being involved in preparing their income tax returns. There are various prices along with occasional deals being offered to the people in the course of preparation of their tax returns. An individual can have visit to the website of liberty tax for getting more details regarding the taxes which are required to be paid by the person. Along with liberty tax there are certain other services being provided such as TurboTax 2015, TurboTax calculator, turbo tax login, TurboTax phone number, tax return transcript, 2015 Schedule A, etc?

VITA Tax Program

This is in the name of Volunteer Income Tax Assistance Scheme which was being launched by IRS for providing free tax filing of people who have income of $54000 or less. There are various VITA sites which provide these kinds of services and help the people to make sure that they are being working towards the area of ensuring that they have essential facilities available to them for the purpose of filing of income tax returns.

Standard Deduction for 2015

There are two categories of tax deductions being provided to the people. One of the categories of tax deduction is standard tax deduction and another category is itemized tax deduction. A person cannot claim both the kinds of deductions at the same time. If a person has one kind of deduction then, he can have only that deduction being available to him. On calculation of adjusted gross total income, the amount of standard deduction makes reduction in taxable income of the person. It is on the discretion of the person to claim the kind of deduction being available to him. The schedule provides details of standard deduction for the year 2015.

Filing Status	Standard Deduction
Single	$6,300
Married filing jointly	$12,600
Married filing separately	$6,300
Head of household	$9,250
Qualifying Widow(er)	$12,600

Income tax Refund

A person can claim refund of the taxes being paid by him in excess of the taxes which should actually have been paid by the person. A person can make enquiry for income tax refund within 24 hours of filing online return or 4 weeks of sending the paper return. For checking status of tax refund one needs to ensure that, he provides his social security number or ITIN. The person can also visit the website of IRS for identifying the refund.

Split Refund

A taxpayer can ensure that, he makes application to Internal Revenue Service to split his overall refund in 2 or 3 banks accounts. For ensuring that, the refund is being split, the person has to make application and accordingly file Form 8888 by providing details of banks accounts and the proportion of refund, he is looking forward to obtain in those bank accounts. There are certain benefits of claiming refund by split method.