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I actually haven't done my taxes in like 2 years due to extreme poverty (in the u.s you don't have to file if your income is under a certain threshold) I think I'm still under that, but I still should probably file this year right? Is there anything specific I should do? Maybe not the best place to ask, but I hate financial anything so I'd really appreciate some advice
in the u.s you don’t have to file if your income is under a certain threshold
You don't have to but also if you're under that threshold you would almost certainly be getting a refund of all of the taxes you paid that year. So I highly recommend filing even if you don't need to
First thing would be to figure out if you're still under the limit. If you don't have to do them, don't do them.
If you are over the limit, there are plenty of free options out there to assist. I personally use free tax usa which works for me. It's great if your income just comes from normal sources like a job, it's not as great if you have investment income or things like that.
I think turbo tax has a free version as well if you meet some qualifications. It's a bit simpler to use imo, but Im not a fan of the company
They really do keep it a secret. I've gotten bills saying I don't owe anything more and then bill me for $100 later. I don't understand, but just pay it. It's where the healthcare system learned their math.
Years ago they actually sent me a check because they thought I should have taken a deduction that I didn't. I didn't want to get on a gotcha list, so I sent back a letter explaining that the deduction was not proper for my situation, and they responded that if that was the case, I needed to file an amended return. That was way more energy than I wanted to spend on this issue, so I just ignored the check... until the next year, when they mailed me another one with a tartly-worded form letter about the importance of promptly depositing it, and again the year after. At that point I figured if Uncle Sam is that desperate for me to take the money I'd indulge him. At this point I'm well past the statute of repose for any potential issues that created, so I think I'm in the clear, but I guess we'll see.
Lol, that's a good problem to have when dealing with the IRS.
IRS doesn't know my deductions til I tell them. I'm certainly not rich either. I just get to write off alot.
If your itemized deductions are higher than your standardized deduction, you're likely in a fairly high income bracket and can have a professional do it for you.
Yeah... My wife and I together make six figures a year (if only just barely), own a home with a mortgage, and have a kid, and I've never had the itemized deduction exceed the standardized deduction. I think you've either got to specifically structure your financial life around taking deductions, or make "'It's one banana, what could it cost" money to have itemized deductions make any sense, at which point, why are you complaining about the cost of tax prep anyway? A tax accountant doesn't cost that much.
itemized was more than standardized before the bush tax cuts for me.
Interesting. What deductions do you have the government doesn't know abut? Where I pay taxes they know how many kids do I have, they how much do I make and how much money do I save for retirement. What deductions do you have in US the government doesn't track?
Blows my mind that you have to file tax returns and stuff in America.