Filing A Tax Return

16th Amendment to US Constitution

The Congress shall have power to lay and collect taxes on incomes,

from whatever source derived, without apportionment among the

several states, and without regard to any census or enumeration.

Income

Citizens◦ pay income taxes based on

the $ earned◦ take deductions based on $

spent on deductible items (according to tax laws)

◦ Complete the tax return form

Taxpayers are legally responsible for ◦ Accurate record keeping◦ Filing a tax return on time◦ Paying any additional tax

due

Who Pays Income Taxes?

Record of Earnings◦ W-2 (from

employer)◦ 1099◦ Interest Earned◦ Dividends Earned◦ Business Profits

Deductions for Expenses◦ Dependents◦ Interest paid◦ Taxes paid

State, federal (IRS), property

◦ Dependent care◦ Medical Expenses

Collect Data

Individual◦ 1040 EZ◦ 1040◦ Business Schedules

Business◦ 1120

Form to File

Download forms from the IRS

USPS has paper forms

Paid tax preparers provide forms◦ Liberty Tax◦ H&R Block◦ Local individuals

Can I complete return myself?

YES◦ IRS website has

tutorials ◦ Software available

Turbo Tax H & R Block

Where do I get the forms?

Federal Tax Return NC Tax Return

April 15th following end of calendar year (December 31)

When to File Tax Return

Federal Return Internal Revenue

Service (IRS)

State of NC Return NC Department of

Revenue◦ Raleigh, NC

Not all states have state income tax◦ Ex: Florida

Where to File

Who issues Refunds?

Federal◦ The US Treasury

Department State

◦ NC Department of Revenue◦ Other state tax offices

Do I get a refund?

◦ Deductions from paychecks for income taxes are estimates & paid into your IRS account

◦ Actual $ owed is calculated at end of year based on deductions

◦ IF your tax due is MORE than you paid in during year, you OWE the IRS.

◦ IF your tax due is LESS than you paid in during year, the IRS OWES you.

Not paying the taxes that are due to the government

Lying about amount

Not filing return at all

What if I do not file a tax return?

Subject to state & federal laws◦ Fines◦ Interest charges on

money due◦ Imprisonment

Tax Evasion

Tax returns are subject to audit

May be charged with tax evasion

What if I lie on my tax return?

Who pays for tax Fraud?Every law abiding taxpayer!