How do I declare taxes in the US

It is important to declare taxes and by declaring them on time, you avoid paying interest and penalties, that is why we will tell you in detail ”how do I declare taxes in the US”.

While all companies established in the United States have the obligation to file taxes, not all citizens and residents of the United States must do it, this depends mainly on the amount of your income, age, immigration status and marital status.

But if you are one of those people who do have to declare taxes and you are wondering How do I declare taxes in the US? Here is the best way to do it.

Learn all about: What are some tax loopholes in America?

Declare taxes in the US: These steps will help you

If you live in the United States, filing your taxes can be overwhelming, and not everyone finds this kind of process easy. That is why if you are wondering how do I declare taxes in the US, these steps will help you:

You need to find the forms for your income.

If you are wondering How do I file taxes in the US, the first thing you should know is that if you have a full-time job, your employers are required to send the W-2 form before the tax filing deadline.

Before this, it is important that you know that in the W-2 form you can see the salary you earned during a whole year. Likewise, the W-2 form also shows the taxes that were withheld.

Learn more about: How do I prepare my US tax return? 

On the other hand, if you are self-employed or hired, you should receive the 1099-NEC form, which shows in detail what you earned during the year. You may also receive documents in which you can see the dividends or interest earned on investments, these last two are captured in the forms 1099-DIV and 1099-INT.

College students should receive form 1098-T, which shows what you paid in tuition, grants or scholarships or any credits and deductions you had during the year related to your educational expenses.

To file taxes you have to choose what is your marital status.

The marital status of the person assigns the income tax rate, that means that you have to choose between:

Single, married filing jointly, married filing separately, head of household( this means that you are the one who pays most of the expenses in the family), widowed with dependent child.

You have to decide how you want to file your tax return.

If you are wondering How do I declare taxes in the US? You must take into account that in order to do it you have to decide how you want to file your taxes, these are the options:

Filing your taxes electronically, this is the option that IRS recommends, this is because it promises to be an accurate and easy method.

You can also choose to file your taxes online for free with Direct File, which is a pilot program that can be selected in 12 states across the country. In this, you are allowed to file your taxes with the IRS, as long as your return is simple.

File your taxes with paper forms through the mail, this option is not the most popular because the process can take up to six months.

You need to determine which type of return is right for you.

If you are wondering How do I file taxes in the US, you should keep in mind that you need to determine whether it is better for you to file a standard deduction or an itemized return.

You should analyze your withholding tables, credits such as child credits, deductions such as personal exemption allowances, alimony, savings plans such as retirement, health savings accounts, and if you are a member of the U.S. Armed Forces there are combat zone benefits and moving expenses, among others.

Learn all about: What is the best way to file tax in USA?

What if you owe money to the IRS?

Those who owe money to the IRS must pay their taxes, the best way to do this is online through the IRS website.

It is important for you to keep in mind that both full payments, partial payments and even installment payments are accepted. You also need to know that according to the tax agency your penalties and interest will not stop accruing until you make your full payment.

Now that you know how do I declare taxes in the US, do not forget to be attentive so that when it is your turn to file your taxes you will not have any inconvenience.