Today I gave a presentation about filing a tax return. I first went over who has to fill out these forms, and what time of the year they have to be done. Then I described some of the different types of forms, and the main purpose of each of them.
I talked about how taxes can be different depending of the state, and information forms and receipts. Finally, I showed some pictures of the different forms I described earlier, and briefly explained them again, so that the audience would get to see how they look.
After that, we listened to a presentation about investing money into real estate and learned about how it can earn you a lot of money in the long term if it is done smartly, and how it can also help you to retire at a younger age. Also, we learned how investing money into real estate takes a lot of effort, however it is stable and will most likely give you a lot of money in return.
Then, we had a seminar, and talked more about the tax forms, and went in to detail about each part of the forms and what they mean. Also, how it is important to hold on to all you receipt, because the IRS will have to check if everything you put on your taxes are true, if you get audited.We also talked about building your credit score by paying off your credit card on time. We went over how you should not trust people who make money from your money, and how you should not invest in to anything until you have a full understanding on where your money goes.
Then we listened to a presentation about stocks and bonds, and learned how there are different ways to invest in stocks. We also learned how there are ways to predict what will happen in the future in the stock market. One of these ways is based on the Fibonacci number that can be used to help approximate when the stock graphs will fall or rise.
Filing a tax return presentation:
Firstly, if you make at least $10,350 a year, are single, and are under 65 years old, you must file a tax return. You must also file a tax return, if you are a dependent who is under 65 years, and you earn at least $6,300 or have at least $1,050 of unearned income (for example dividends or interest.)
Individuals file tax for the calendar year (January 1 to December 31) in the following year. Normally the deadline to file a tax return is April fifteenth, however, this year it is on April seventeenth. If you are not ready to file the tax return on time, you are able to ask for a six month extension of your tax. But you must ask of this before the April deadline and pay an estimate of your tax. You will owe interest and penalties if you underestimate your tax, which means you would be better off estimating it high.
As for tax forms, most people use form 1040. Some people who have simple taxes can use the form 1040EZ (easy), but if you have adjustments like student loans or IRA contributions (retirement savings), it would be better if you use the form 1040 so that you can get deductions.
Schedules and additional forms you need depend on your particular circumstances. Some of these additional forms include:
-Schedule A, which is for itemized deductions. This might be better than blaming the standard deduction (in the form 1040) if you pay state and local taxes, and/or if you own a home and pay property taxes and mortgage interest.
-Schedule B, which is for ordinary interest and dividend income. This would be a good form for you to use, if you own stocks or if you earn bank interest.
-Schedule C is for business income, if you are self employed, you get to deduct lots of your expenses from the money you make, to reduce your tax bill.
- Schedule F is for farming income. It has deductions that are meaningful for farmers, like chemicals, fertilizer, seeds and plants
Although Americans who qualify have to file a federal income tax return, each state has different rules. Generally, states with low or no income tax have higher property taxes, because government services still have to be paid for somehow. States with more natural resources (like oil and natural gas) or more large companies need less income tax revenue form individuals. For example, Texas has not State income tax because it has both natural resources and lots of large companies.
To make it easy to fill out your income tax return, your employer, bank, investment company, and charities will all send you forms and/or receipts listing all the information you need. Your employer must send you a form W-2 (for an employee) or a form 1099 (for a contractor) listing your income, and any deductions like income tax paid, and retirement savings contributions. Your bank must send you a form 1099-INT for any interest paid to you. If you own stocks, you will receive a form 1099-DIV for any dividends paid to you. If you donate money to a charity, be sure to get a receipt to prove it. You can claim the deduction without a receipt, but if you get audited by the IRS, you will need to prove everything.
Works Cited:
https://www.irs.gov/newsroom/2018-tax-filing-season-begins-jan-29-tax-returns-due-apr il-17-help-available-for-taxpayers
https://www.irs.gov/pub/irs-pdf/f1040sa.pdf
https://www.irs.gov/pub/irs-pdf/f1040sb.pdf
https://www.irs.gov/pub/irs-pdf/i1040gi.pdf
https://www.irs.gov/pub/irs-pdf/f1040sc.pdf
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