Understanding your tax return can prove difficult. There are a lot of rules, laws, and other factors which you have to keep track of in order to do it all right. Income tax returns are going to be prepared based on a formula which is going to take into consideration your individual situation. Once you are able to comprehend all of this, you will be able to make better sense of your tax return in Plumas County and get any help if you need.
Identify Form
There are three forms you will be able to choose from if you are an individual taxpayer. These include the 1040EZ, the 1040A and the 1040. Each of these is going to mean a different thing for your return. For example, the 1040EZ will be for someone who is making less than $100,000 each year and they do not have any dependents while the 1040A will be the same but there are some dependents in the picture.
Filing Status
The filing status you have is also going to make a difference in the return you can get. For example, if you are single you will not get the same kinds of tax return in Plumas County as you will if you are married filing jointly.
Find Exemption
Each person is going to have different exemptions which are going to factor in to how much of a tax return in Plumas County they are able to get. For example, if you have no kids, do not own a house, and have no student loans you will probably be getting a smaller tax return from the government compared to someone who has one or more of these exemptions. Usually the more exemptions you have the more you will be able to get back in the tax return.
Income
First, you will need to determine the gross amount of income which was earned over the past year. This is usually going to be found on the W2 from your employer and will be before any of the taxes were taken out. You will also need to figure out how much of your income is taxable. This will be after all of the deductions, exemptions, and factors like retirement are taken away. If the taxable income is less than 0 you will get a return.
Understanding your tax returns can be difficult. Finding professional tax return help, such as from the professionals over at Feather Financial, can make it all easier and ensure you get it done right.
