what is meant by income tax returns? why one has to file his returns every year?

Answer 1

An income tax return is the form which one fills out in order to determine the correct amount of tax to be paid. Not all persons are required to fill one out -- if the income is too small to be taxable, a return may not be required. The instructions which come with the various tax return forms give filing requirements, definitions of what income is and how it is taxed, and the rates to be applied. The rules are all laid down in the Federal Tax Code, which you don't want to read unless you have to -- it runs 17,000 pages.

Answer 2

Anyone with a job generally has taxes with held, often too much is with held and you have a right to get it back by filing a tax return. Filiing a tax return is simple math. A 11 year old should do it with ease in most situations.

I've seen college math professors struggle with it, out of fear, mostly.

I just helped a 19 year old get ALL her money back, because she didn't make more than the minimum amount. So we filled in her form with numbers, put in lots of zeros and she gets back ALL they tooke because she made less than $8,000.

Answer 3

Assuming the question is about earnings tax (and social protection is being withheld): For a married couple filing mutually, the classic deduction is $eleven,400. also, there's a $3650 in retaining with human being exemption, which includes yet another $7300, making a finished of $18,seven hundred exempt. that signifies that in common words $1300 may be taxed, and the tax may be in common words 10% of that, or $one hundred thirty (that is in common words 0.sixty 5% ). If no tax is being withheld, then there's a fifteen.3% self-employment tax.

Answer 4

Taxes are a way for he government to collect money from its citizens for services provided, road repair,schools, courts, welfare, national security, etc. You pay taxes in many different ways. Taxes on property, sales tax each time you buy something, are a couple of other ways you help fund the government.

Income tax is designed to collect money from every individual who has a job for the government to use. For many, it is taken directly from your paycheck. To ensure that everyone is paying their fare share, based on ability, you file paperwork to see if the government should "return" some or all of your money. Things that lower the amount you are expected to pay is children, amount of money you make (the more you make, the more you pay). The list goes on and on. These are called "tax breaks".

Filing every year, makes it easier for the government to keep track, I suppose. It also makes it easier for those who need to pay in more money, it gives them a year to get it done.

Answer 5

To pay tax if you are self employed .Write down the amount you have earned,expenses,travel costs etc.The tax office will assess it for you .

Answer 6

Because Uncled Sam says so, and it's not nice to piss off Uncle Sam!!