Taxes

Why we pay taxes

We pay federal, state and city taxes because it helps pay for services. These services include: fire department, police department, public schools, roads, social security and military. Without taxes, none of this would be possible.

When to file a Tax return

You only have to file a tax return if you make a certain amount of money, and your tax deduction is generally based on your age and your filing status. The government determines the amount your taxes are deducted by before taxes are due, and it change every year based on inflation.

For example, in 2019, single filers under 65 years old who make less than $12,200 do not have to file a tax return. On a tax return, you write your income, expenses, and other tax information.

Tax returns are normally due on April 15.

How to file a tax return

To file a tax return, you can either do it manually, have an accountant do it, or have a company like Turbo Tax do it. Turbo Tax is a software that helps file your taxes. If you choose to file manually, you would fill out Form 1040, and you then mail the form and any payments you owe to the IRS. If you choose to use software like Turbo Tax, the service will help you answer questions about your income and tax deductions. You will then fill out Form 1040 and have the option to submit it online. Finally, you can hire someone to file it for you. The accountant will maximize your deductions and do all the work for you. Here is a diagram to help you decide whether to do the taxes yourself or not.