The April 2 (2018), deadline for submitting your 2017 taxes in the United States is fast approaching. As you can see in the infographic displayed on this page, income tax supplies the IRS with approximately 50 percent of its overall taxation revenues.
Match that with the fact that the tax burden placed on Americans is much less than the OECD (Organisation for Economic Co-operation and Development) average of 34 percent, and all US citizens should take pride in filing their return this year. Currently only Korea, Chile and Mexico pay fewer taxes.
This infographic from PDFelement shows you a glimpse of the US taxes, which can help you in filing your tax returns.
Here’s a summary of the info listed on the infographic:
Confirm Your US Tax Obligation
As the infographic details, not everyone will have to file taxes this year. You need to file a return if you fit into any of the following categories:
- You earned more than $10,000 as an individual, or $20,000 as a couple.
- You made more than $400 as a self-employed individual.
- You sold your home in 2017.
- You need to pay taxes on a retirement account.
- You have outstanding Social Security or Medicare taxes that weren’t reported to the IRS by an employer.
Gather Forms and Supporting Documents
Gather all the tax forms you’ll need to file, then gather all supporting documentation you’ll need to fill in the forms as accurately as possible:
- Earning statements.
- Interest statements.
- Receipts.
Make sure to store all supporting documents in a safe place for later, in case you’re audited.
Determine Filing Status
This is simple, are you going to file as single or married for the 2017 tax year?
Are You Eligible to Have Your Return Prepared for Free?
Citizens eligible to have returns prepared for free include low income individuals, military, elderly, disabled, and those with limited English skills.
Filing Taxes for 2017
The graphic then goes on to recommend the IRS e-file service, to determine which forms you need, and to get the most accurate return and payment details submitted. This is important because an inaccurate return spells delays, audits, and potential filing deadline penalties if you run into trouble doing your own 2017 taxes.
How People Plan to Spend Their 2017 Income Tax Return
It’s interesting to learn that the majority of Americans, even younger millennials, plan to put their 2017 return into their savings account. With so many around us talking about the exotic vacations they plan on taking, or new car or electronic gadgets they want to buy post tax season, it’s refreshing to see 41 percent planning to save their return.
Whether that goal materializes or not is another story!
Of course, it’s no surprise that even though US citizens have one of the lowest tax burdens in the world, they still have tons of debt to pay off. With a walloping 37 percent of US tax payers planning to put their income tax return toward outstanding debt, we all still have a long way to go before true financial independence is achieved.
What are you planning to do with your return this year?