Finance - Filing Your Tax Return

What does the IRS stand for?

Internal Revenue Service

What are the 3 IRS forms?

W-4, W-2, 1040

W-4 Form

It must be filled out whenever you start a new job, and tells your employer how much to withhold from your paycheck. It must be updated whenever you experience changes that affect your salary (marriage, kids, etc.).

1040 Form

This is your tax return form, which lists all sources of income during the previous year. It identifies tax deductions and credits that you qualify for and calculates your total tax liability (what you are required to pay). After filing, you either get a refund or a bill.

What are the three ways to file your taxes?

Do it yourself, use a tax prep software, or hire a tax preparer.

What happens if you don’t file your taxes?

The government charges you 5% extra of your unpaid taxes for every month you are late, up to five months. If you are more than 60 days late to file, then the government can charge you a minimum payment of 100% extra on your unpaid taxes or a fine of $435, whichever is less.