WHAT IS THE INDIVIDUAL INCOME TAX?
The individual income tax is a tax imposed on an individual's annual earnings. An individual consists of a U.S citizen or resident. Filing an income tax return depends on the individual's gross income, filing status and age. Gross income includes income you receive in the form of money, goods, property, and services that isn't exempt from tax. An individual's filing status depends on your marital status and your family situation. If you are under 65 years of age and meet the income requirements, then you must file. If you are over the age of 65 and meet the income requirements, then you must file.
ADJUSTED GROSS INCOME
Gross income is all the income you received in the form of money, goods, property, and services that isn't exempt from tax. Adjusted gross income is your total income from all sources minus certain deductions or adjustments. Your AGI is calculated by deductions made to your gross income such as half of the self-employment taxes you pay; self-employed health insurance premiums; contributions to certain retirement accounts (such as a traditional IRA); student loan interest paid; educator expenses, etc.
5 FILING STATUSES
It is the responsibility of the parent(s) to include the child on their tax return if the child can be claimed as a dependent. If the child cannot be claimed as a dependent, then it is the responsibility of the child to file an income tax return. If a dependent child must file an income tax return but can’t file due to age or any other reason, then a parent, guardian, or other legally responsible person must file it for the child.
INDIVIDUAL TAX FILING WITH DEPENDENTS
It is the responsibility of the parent(s) to include the child on their tax return if the child can be claimed as a dependent. If the child cannot be claimed as a dependent, then it is the responsibility of the child to file an income tax return. If a dependent child must file an income tax return but can’t file due to age or any other reason, then a parent, guardian, or other legally responsible person must file it for the child.
WHAT IS IRS FORM 1040
IRS Form 1040 is used to report all types of income, deductions, and credits and is used to file an income tax return.
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FREQUENTLY ASKED QUESTIONS
Annually. You must figure your taxable income on the basis of a tax year. A “tax year” is an annual accounting period used for keeping records and reporting income and expenses.
You can mail your tax return, or you can file it electronically. You can use a tax preparation company, your own tax software, or you can use the IRS free file if you qualify to file your tax return electronically.
You must keep records so that you can prepare a complete and accurate income tax return. The law doesn't require any special form of records. However, you should keep all receipts, canceled checks or other proof of payment, and any other records to support any deductions or credits you claim.
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