How to File Your Federal Income Tax Return
Below are some important steps you should take to file your federal income tax return
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1. Find out if you are required to file a federal income tax return
The federal tax filing statuses include: single, married filing jointly, married filing separately, head of household, and qualifying widow(er) with dependent child. You may qualify for more than one filing status, in which case you will have to make a choice. In that situation, you should choose the filing status that will result in the lowest tax.
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2. Calculate your dependents and personal exemptions
The IRS allows taxpayers to claim personal exemptions for themselves and their dependents. A personal exemption is similar to a tax deduction because it reduces your taxable income. For tax year 2013, the maximum personal exemption is $3,900 ― note that your personal exemption amount may be less if your income exceeds a certain amount. Your personal exemption information must be 100% accurate on your tax return because it largely impacts how much federal income tax you owe.
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3. Mortgage payment protection, which helps pay your loan in case you lose your job
The IRS allows taxpayers to claim personal exemptions for themselves and their dependents. A personal exemption is similar to a tax deduction because it reduces your taxable income. For tax year 2013, the maximum personal exemption is $3,900 ― note that your personal exemption amount may be less if your income exceeds a certain amount. Your personal exemption information must be 100% accurate on your tax return because it largely impacts how much federal income tax you owe.
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4. Report your income for the tax year
The IRS allows taxpayers to claim personal exemptions for themselves and their dependents. A personal exemption is similar to a tax deduction because it reduces your taxable income. For tax year 2013, the maximum personal exemption is $3,900 ― note that your personal exemption amount may be less if your income exceeds a certain amount. Your personal exemption information must be 100% accurate on your tax return because it largely impacts how much federal income tax you owe.
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5. Claim eligible tax credits and deductions
If you qualify for any tax credits or tax deductions, you will want to take advantage of them. Tax deductions reduce your taxable income and tax credits reduce the actual amount of tax that you owe ― both will increase your chance of receiving a tax refund. Make sure you understand how to properly claim any income tax benefits, as mistakes will delay the processing of your return. If you are preparing your own income tax return, you may order IRS tax forms (and publications) for delivery by U.S. mail or you can access the forms online. All of the documents that you will need to file your federal income tax return should be available on the IRS website.