Federal tax payers commonly fill out forms also known as the 1040A or the 1040EZ. Tax payers are often told to fill out the shorter versions of the sated forms if possible to save time and paperwork. Those individuals and business entities having a complex tax return usually seek for the help of professional to check the forms that need to be accomplished. Recently, however, these individuals and big business entities are opting to file federal taxes online or electronically to save times. It is also less expensive since the available online tax filing programs come with self-guided instructions that would assure you that you will do the right procedures in filing for federal taxes. Under the said online system, accuracy is ensured and speed is guaranteed since it could be transmitted with a single click.
When you are looking at the 2009 Federal Tax Tables, you need to apply your income to each range. This is good for you because you don’t want all your income taxed at the highest rate. Let’s go over an example. Assume you are a single filer and your taxable income is $ 30,000 after you subtracted all your deductions. The first part of your tax is 10% on the first $ 8,350. This is 8,350 * 10% = 835. The second part of your tax is 15% on the amount you made from $ 8,350 up to your total income of $ 30,000. This is (30,000 – 8,350) * 15% = 3,247.50. This means your total tax is 3,247.50 + 835 = $ 4,082.50. Hopefully, you paid more taxes than this and will get a big refund!
Filing Your Taxes Yourself
Instead of taking the services of an agency, you can file your taxes yourself.
You can choose from a variety of tax preparation software to help you file your taxes accurately. Using this software almost guarantees that you make no mistakes while filing your taxes. TurboTax is among the most popular tax preparation programs. People belonging to any tax group can use this program. Specialised software for self-employed people is also available.