Introduction to Tax Returns
They say that there are two sure things that you can have in your life and these are death and taxes. Taxes are those duties that need to be paid by corporations and individuals in a country. The taxes can be seen as the income-generating method of the government which is vital for their functioning. The taxes in different countries may vary.
Do you know how taxes are collected by the government? Those who need to pay tax submit it to the government through the tax return. These are papers that are considered as forms which those paying taxes need to fill out and submit to the tax bureau. Where do you get these forms? For the employed people they may obtain this from the department handling it in their company. And it is always the company who takes charge of their filing of taxes. Those who are not connected with any company can get it from the bureau of tax. The forms do not come at a price.
Actually there are a number of tax returns that are available. To distinguish one from the other a number is placed on the form. For example there is a specific tax return for individuals. On the other hand there is also a specific tax return form for corporations or businesses. There is also a tax return for investment.
Do you know the things that you will see in a form? In a tax return you would find three categories for filling up. The income is the first part. This is where all sources of income are written. For people who are working for companies the companies take care of these and they have their salary as their main source of income. If you are self-employed then you must put there all income-generating sources that you have.
After the income come the deductions. This is the part where all the deductions for your income can be placed. Are you aware of these deductions? One example of deduction is the spousal support which an individual gives. Another kind would be what you contribute to a retirement savings plan. There are greater deductions that can be listed down by businesses. Businesses have the right to deduct their operational expenses from their income. An example would be electricity and materials that they used.
The last section is devoted to credits. It is the individuals who fill this out. An example of a credit would be dependent children. The number of dependent children can also affect your credit. Having more dependent children may mean more tax credit for a person. Old dependent parents can also be considered tax credit. Different places may have different jurisdictions for credits. You need to learn about what credits are available in your area.
Source: Tax Return