General Views on Tax Returns Some would not know when people were taxed or how taxes came about in the past, but simple understanding and information given is that the taxes collected from the people will be used by the government to help implement projects and activities that the general public would benefit. Old governing bodies before would collect taxes in various forms like labor, produce or gold. Nowadays, money is the form of taxes that are collected. In other words, we have no choice but to pay our taxes, unless you want trouble. Wars and other public projects were funded in the past using taxes. In our modern government, taxes are used to help build our country's infrastructure, provide education funding, maintain law and order, fund economic structures and administration, for defence, etc. Going back to history, President Woodrow Wilson set up the Federal Income Tax in 1913, wherein the system deducted about 1% to 7% of a person's income. Since then, with the additional taxes set in, and after World War I, taxes have become four times bigger.
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In America for example, there is a certain level of income that citizens are expected to file their tax returns. Some with salaries or pensions under a Pay As You Earn condition are not expected to file their returns.
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Tax return forms are given by the IRS or Internal Revenue Service in which all details of income and expenses incurred for the period are to be given or written on the form. The amount of taxes you have to pay would come from the calculation of these information, and the citizen can either compute it himself or herself, or have the IRS do the computation. The tax return form is composed of one page which everybody has to fill in, and with nine supplementary forms for those people with specific types of income that they have to file. You are still expected to file returns even if you are self-employed, for as long as you have other sources of income like rentals from your property, or interest of your money from a national savings account, etc. If you think or aware that you have not paid correctly your returns, you must always file your tax returns based on your income. Some people are charged with fines or penalties and could go to jail if they wait for the IRS to send them notice of the incorrect filing of tax returns. Know that you have to send your tax returns to the local tax office by the end of January after the end of the tax year, or else suffer some penalties.
Tuesday, September 13, 2016
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