Each year, workers and businesses have to calculate their income for the
previous year. Then they find out how much tax they owe the government and
submit it to the government. This process is called “filing a tax return.”
There are many people who pay their taxes while filing their return.
This is because a tax amount is taken from their salaries before they receive
it. Sometimes your tax return may show that you have paid a lot of taxes, and
the government owes you a refund!
Do I need to file a tax return?
Whether you owe taxes or the government owes you, it's your
responsibility to know when and how to pay taxes.
If you filled out tax forms when you started your business, you will
receive a W-2 form from your employer at the beginning of the year that shows
how much money you earned and how much you paid in taxes. You will need this
form to complete your tax return.
You must send your tax return for the previous year to the government
before April 15 of each year. You need to file your taxes with the IRS on a
government form.
What happens if I don't have a Social Security number?
If you earn income in the United States, the law says that you must pay
taxes. You can pay taxes without a Social Security number.
You can use an Individual Taxpayer Identification Number (ITIN). The US
Internal Revenue Service will provide you with an ITIN if you do not qualify
for a Social Security Number (SSN).
What is income tax?
Income tax is a tax on your income (what you earn or receive each year).
People pay income tax to the federal government and to most state governments.
Some states, such as Washington and Florida, do not impose an income tax.
Federal income tax is collected by the Internal Revenue Service and goes
to the US government treasury. State income tax goes to the state revenue
departments.
The tax rate or value you pay depends on what you earn and what you
spend. People who earn or get more pay more tax than those who earn less.
Other things affect how much you pay. If you have children, you can get
a large tax credit to help you with the costs of raising a family. A tax credit
means that you pay tax less than your income.
Marriage can affect how much tax you pay, too. Unmarried people get less
tax deductions than married people, so they may pay more taxes. But spouses who
work may pay more taxes together than if they are not married.