Returns: 10 Mistakes that Most People Make

How Does One Qualify to Make a Tax Return?

To fund its expenditures, the government in place imposes levies on citizens of a certain age in form of taxes. Paying of these taxes is a law and failure to pay them at the right time is a punishable act. These funds go into funding government projects like infrastructure, public works, military works and all other all activities involved in running a government.

The government runs into debt if it happens that the expenditures are more than the taxes paid. A tax return has to be made when one wants to pay the taxes. To help individuals in knowing the amount of tax that they should pay, the different taxing authorities in different countries prepare a tax return form. The forms can be downloaded from the internet or even found in the different taxing authorities’ offices.

In making a tax return, the government is able to know about the individuals’ total income and the accrued wealth and debts. People with a national identification and can be referred to as an adult in a certain country, with an income, are meant to fill their returns. The kind of occupation one has does not matter, be it in private, public or even self-employed. The filing of these reports usually have a deadline and once you delay a penalty is given.

There are different types of tax returns that an individual may fall in. Starting with the income taxes, these are meant to be imposed on people with an income. This is done on the taxable income which are the profits.

The employment taxes happens to individuals on a payroll. By getting a certain percentage of the salaries, this is usually done by both the employers and the employees. These payroll taxes are usually categorized into two, one is the deductions that employees get from their salaries, which are commonly known as the pay as you earn (PAYE). We also have the taxes that an employer pays to cater for employing people from his or her own funds based on the amount of the employees’ wages.

We also have the statutory excise tax which is an inland tax on the production of goods for sale within a certain country. This excise taxes are imposed separately from the other duties like the value added tax (vat).

There is also a tax paid in the transfer of a title to property which is referred to as the transfer taxes. Involved in this is the areas like the real estates and in shares where registrations of formal agreements have to be done and probably involves a stamp duty.

To avoid the extra charges the defaulters pay, once you know the kind of return you are meant to make, it is important to do it on time before the deadline.