… AND TAX RETURNS!
WHAT IS A TAX RETURN?
- A tax return is a form you file with a tax authority (i.e. the IRS) that tells them 3 key things about your financial year:
- Your Income: How much money you earned (from wages, investments, etc.)
- Your Deductions/Credits: What you are allowed to subtract from your income or tax bill (like the standard deduction, child tax credit, etc.)
- Your Final Tax Due: Based on the first two points, you calculate how much tax you should have paid
- The ultimate goal is to determine if you paid too much (receive a refund) or didn't pay enough (owe more taxes)
WHY IS FILING A TAX RETURN IMPORTANT?
- Legal Obligation: It's a legal requirement if your income meets certain thresholds
- Avoid Penalties: Filing prevents significant "failure to file" penalties and interest charges from the IRS
- Receive Refunds: You must file to get back any money you overpaid (tax withheld from paychecks)
- Claim Credits: It's the only way to claim valuable, often refundable tax credits
- Proof of Income: The return acts as official proof required for loan and/or financial aid applications, and rental agreements
- Secure Benefits: For the self-employed, filing ensures income is correctly reported for Social Security and Medicare benefits
WHEN DO I RECEIVE MY TAX RETURN?
- The term "tax return" actually refers to the form you file with the government
- What you are waiting for is your tax refund, which is the money returned to you if you overpaid your taxes
- The timeline for receiving your refund depends primarily on how you file and how you choose to accept the money (electronically or by mail)
- For e-filed returns with direct deposit, the IRS typically issues most refunds within 21 calendar days. Paper-filed returns take 6–8 weeks or longer.
WHERE DO I FILE MY TAX RETURN?
- E-File (Recommended): You file electronically using tax software (ex: TurboTax, H&R Block) or by using a tax preparer (ex: me) that will securely send your return directly to the IRS
- Mail: Print out your forms and mail them to a specific IRS processing center. The address depends on the state you live in
- Click below for the different types of forms to fill out:
HOW IS A RETURN FILED?
- This step is easy if you choose to consult in a professional preparer who will guide you through the process:
- Prepare: Gather your Documents
- Calculate: Determine Taxable Income
- File: Submit Completed Return
Start this process by filling out an Intake Form in Services tab!