What Information Do You Need To File Taxes

Your Businesss Payroll Data

Your accountant or tax professional will also need your payroll data from the year. Bring copies of your employees W-2s, W-3s, and 1099-MISCs. Also, gather health insurance records and any information regarding bonuses.

Payroll software makes this information readily available. Check out our top payroll software recommendations to make gathering this information easier come next tax season.

File An Estate Tax Income Tax Return

An estate administrator must file the final tax return for a deceased person separate from their estate income tax return.The types of taxes a deceased taxpayer’s estate can owe are:

• Income tax on income generated by assets of the estate of the deceased. If the estate generates more than $600 in annual gross income, you are required to file Form 1041, U.S. Income Tax Return for Estates and Trusts. An estate may also need to pay quarterly estimated taxes. See Form 1041 instructions for information on when to file quarterly estimated taxes.

Watch For Your Income Documents To Arrive

You should receive forms about how much income youve earned from your employers and other income sources in January or February. If you are a full-time employee, you will receive a Form W-2 detailing your earnings, as well as which taxes were withheld. If you work freelance or on a contract, you may receive a Form 1099-NEC detailing what you earned. You may also receive documents showing dividends or interest earned on investments , or student loan interest youve paid . If youre a college student , youll receive a Form 1098-T that shows how much you paid in tuition, as well as any amounts you received from grants or fellowships, to help you figure out deductions and credits related to education expenses.

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Due Date Extension For 2021

Because of the severe weather that Texans experienced in February of 2021, the Texas Comptroller of Public Accounts has extended the due date for 2021 Texas franchise reports and payments to June 15, 2021.

The comptrollers website shares that the extension is automatic for all taxpayers. Hence, there are no additional forms required to get the extended due date. The due date extension applies to all taxpayers. The extension is automatic, and taxpayers do not need to file any additional forms.

Due Dates:

• If taxpayers cannot file by the extended due date, they must file an extension request by June 15 and pay 90% of the tax due for the current year or 100% of the tax reported in the prior year.
• Non-electronic funds transfer taxpayers who are granted an extension have until November 15, 2021 to file their report and pay the remaining tax amount due.
• Electronic funds transfer taxpayers who are granted an extension have until August 16, 2021 to file and pay the remaining tax amount due.
• EFT taxpayers have the option of requesting a second extension to move their filing deadline to November 15, 2021. They must file that second extension request on or before August 16, 2021. At the same time, they must pay their remaining tax amount due. Their report deadline gets extended to November 15, but the balance of their tax obligation must be paid by August 16.

The Nations Top Corporate Tax Environment

Top ranked by Area Development, Texas tax climate is a constant benefit for companies.

With no corporate or personal income tax, Texas has one of the lowest tax burdens in the nation. The state offers a number of other advantages for businesses, including a sales tax exemption for manufacturing machinery and equipment and R& D-related materials, software, and equipment, as well as a franchise tax exemption to manufacturers, sellers or installers of solar energy devices. Property tax abatements, permit fee waivers, local cash grants and local funding are also available to assist companies looking to relocate or expand in the state.

Gov. Greg Abbott and the Texas Legislature continue their efforts to make the state even more competitive from a cost perspective. For example, in 2015, during his first session in office, Gov. Abbott successfully passed an across-the-board 25% reduction in the franchise tax. Texas lawmakers also passed a meaningful property tax cut to increase the homestead exemption by $10,000.

Texas Income Tax

Having no state income tax in Texas is a huge draw for individuals and businesses alike. Employees know that theyre getting the most out of their paycheck, and companies know that Texass friendly tax environment attracts the most skilled and in-demand workers.

Business Taxes in Texas

The Tax Structure in Texas

Texas tax incentives for both businesses and individuals make Texas attractive for expanding and relocating businesses and their employees.

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Use A Tax Professional

For anyone with a complicated financial situation or a lack of confidence about finances, a tax professional is a better option. Capable tax professionals can help minimize the amount you owe and maximize the deductions you claim. Using a tax professional can pay for itself.

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What Is A Texas Franchise Tax

The Texas franchise tax is a privilege tax imposed on each taxable entity formed or organized in Texas or doing business in Texas. Form 05-359, Request for Certificate of Account Status to Terminate a Taxable Entitys Existence in Texas, if needed to terminate the entity with the Secretary of State.

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Use Tax Preparation Software

An intermediate option between filing your own taxes and hiring a professional is to use tax preparation software for your federal and state returns. You input your own information, but the software is designed to help you through the process step by step.

Professional support may be available online or by phone, or both.

If you use it for more than one year, the best of these programs automatically fill in your previous year’s information.

Choose The Right Income Tax Form

Your residency status largely determines which form you will need to file for your personal income tax return.

If you are a Maryland resident, you can file long Form 502 and 502B if your federal adjusted gross income is less than $100,000.

If you lived in Maryland only part of the year, you must file Form 502.

If you are a nonresident, you must file Form 505 and Form 505NR.

If you are a nonresident and need to amend your return, you must file Form 505X.

If you are a nonresident employed in Maryland but living in a jurisdiction that levies a local income or earnings tax on Maryland residents, you must file Form 515.

Special situations

If you are self-employed or do not have Maryland income taxes withheld by an employer, you can make quarterly estimated tax payments as part of a pay-as-you-go plan, using Form PV. Please refer to Payment Voucher Worksheet for estimated tax and extension payments instructions.

If you owe additional Maryland tax and are seeking an automatic six-month filing extension, you must file Form PV along with your payment by April 15, 2020. You should file Form PV only if you are making a payment with your extension request.

If you need to make certain changes to your original Maryland return that has already been filed and processed, you must file Form 502X for 2019 to amend your original tax return.

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Before You Start Tax Preparation

If you use a program such as Quicken® to keep track of your finances, print a report of your transactions for the tax year . This will make your tax preparation much easier, and helps you clearly see where your money goes each year.

• Having this information in a report is much easier than going through your checks and bank statements for the entire year.
• As you review the report, highlight information you will need to prepare your tax return or make notes to remind yourself of something later.

Information About Your Income

• Income from jobs: forms W-2 for you and your spouse
• Investment incomevarious forms 1099 , K-1s, stock option information
• Income from state and local income tax refunds and/or unemployment: forms 1099-G
• Taxable alimony received
• Business or farming incomeprofit/loss statement, capital equipment information
• If you use your home for businesshome size, office size, home expenses, office expenses.
• IRA/pension distributionsforms 1099-R
• Rental property income/expenseprofit/loss statement, rental property suspended loss information
• Social Security benefitsforms SSA-1099
• Income from sales of propertyoriginal cost and cost of improvements, escrow closing statement, cancelled debt information
• Prior year installment sale informationforms 6252, principal and Interest collected during the year, SSN and address of payer
• Other miscellaneous incomejury duty, gambling winnings, Medical Savings Account , scholarships, etc.

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Filing Requirements Chart For Tax Year 2021

G.S. 105-153.8 requires a married couple to file a joint State income tax return if:

Generally, all other individuals may file separate returns.

On joint returns, both spouses are jointly and severally liable for the tax due. A spouse will be allowed relief from a joint State income tax liability if the spouse qualifies for innocent spouse relief of the joint federal tax liability under Code section 6105.

A married couple who files a joint federal income tax return may file a joint State return even if one spouse is a nonresident and had no North Carolina income. However, the spouse required to file a North Carolina return has the option of filing the State return as married filing separately. Once a married couple files a joint return, they cannot choose to file separate returns for that year after the due date of the return. If an individual chooses to file a separate North Carolina return, the individual must complete either a federal return as married filing separately, reporting only that individualâs income and deductions, or a schedule showing the computation of that individualâs separate income and deductions and attach it to the North Carolina return. In addition, a copy of the complete joint federal return must be included unless the federal return reflects a North Carolina address.

How To Calculate Total Revenue For A Texas Llc

Total Revenue comes from your LLCs federal income tax return. While there are more details and exceptions, the information below is a simplified approach, extracted from the Texas Tax Code: Section 171.1011.

The information below is subject to change. Again, we recommend calculating Total Revenue with an accountant in Texas.

Note: Calculating an LLCs Total Revenue for Combined Reporting and Tiered Partnerships are different. These are discussed below in the FAQ section.

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How To File A Public Information Report

You can file your LLC Public Information Report online via WebFile or by mail.

Filing via WebFile is quicker and easier. To do so:

• login to WebFile
• please see the Public Information Report instructions listed above

To file by mail, visit the Texas Franchise Tax Forms page, click on the report year, click EZ Computation or Long Form, then click 05-102, Public Information Report to download the form. Once complete, mail it to:

Comptroller of Public Accounts PO Box 13528 Austin, TX 78711-3528

Note: The mailing address is subject to change. Please double-check this mailing address with the address listed on the Public Information Report.

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Or You Can Use Independent Computer Software Products

You can file both your Maryland and federal tax returns online using approved software on your personal computer. To use this method, you’ll need to know the correct county abbreviation for the Maryland county in which you live. You may need to enter the correct subdivision code for the city in Maryland in which you live.

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Why Should I Get An Itin

Some of the benefits to getting an ITIN include:

1. Filing taxes.

This can serve as proof of good moral character in immigration cases. Filing taxes can be helpful in your immigration case if you are able to adjust your status in the future.

2. Opening a personal bank account.

In somecases, an ITIN can be used as a substitute for an SSN to open a personal checking or savings account. A bank account is a safe place to store your money and allows you to establish a financial history.

3. Building credit.

Some credit cards require you to have an established bank account to apply. By developing a good credit history, you may be able to do things like buy a house,purchase a car, or borrow money to start a business in the future.

4. Claiming tax credits.

Filing taxes also means that you can claim tax credits that you are eligible for. These credits can reduce the amount of taxes you owe or can provide you a tax refund that can be put towards things like the cost of raising kids or to cover daily living expenses. Learn more about specific tax credits available if you have an ITIN.

5. Purchasing health insurance.

When you purchase health insurance for your US-born children through the Health Insurance Marketplace, you may be eligible for the Premium Tax Credit , which can help lower how much you spend on insurance. To get the PTC, parents with ITINs are required to file their taxes.

6. Securing identification.

Tax Preparation Checklist: What Do I Need To File My Taxes

A checklist for all the information you need can make the tax preparation process easier. Often, your income and tax figures are provided to you on special forms, but sometimes you have to rely on your own records for your source of income. Although most people have their taxable income reported to them and the IRS on official tax forms, you are required to report all of your taxable income, even if you dont receive a form.

For example, a company only has to prepare a W-2 for you if you earned more than $600. However, if you earned $500, youre still required to report that income on your tax return even though you likely wont receive a W-2.

Heres a tax-filing checklist of all the information you need to file your tax return:

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Pandemic Stimulus Payments And Credits

• IRS Notice 1444-C, Your 2021 Economic Impact Payment,which shows the amount you received in your third economic impact payment
• Letter 6475,Your Third Economic Impact Payment, which helps those who didnot receive a third economic impact payment determine whether theyre entitled to receive one
• Letter 6419, which shows the total advance child tax credit payments you received in 2021

• Fees paid to child care providers, including day care centers and individual providers
• Social Security number or tax ID of any individuals who provided child care

What Are Acceptance Agents

Acceptance Agents are authorized by the IRS to assist you in completing your ITIN application. Some Acceptance Agents do not prepare tax returns. In that case, you must take the completed Form W-7 certified by the Agent to a VITA site or commercial tax preparer and submit it with the tax return.

Acceptance Agents are often found at colleges, financial institutions, accounting firms, nonprofit agencies and some Low Income Taxpayer Clinics. Commercial tax preparers who are Acceptance Agents often charge a fee that can range from $50 to $275 for completing the Form W-7. There is no fee for applying directly with the IRS.

Visit the Acceptance Agent Program on the IRS website for a list of Acceptance Agents by state that is updated quarterly. Low Income Taxpayer Clinics may also be able to help identify local Acceptance Agents.

Note to organizations:

You may want to become an Acceptance Agent. To do so, your organization must:

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Fill Out Filing Status Claim Dependents And Provide Banking Information

For STEP 1. Fill Out Your Tax Forms, there is required and optional information to complete. Skip the optional fields if they do not apply to you.

Required:

• First name, middle initial, and last name
• Social Security Number or Individual Identification Number
• Dependents in 2020: First and last name, SSN, relationship to you. Check the box if they qualify for the CTC.

Note: these fields are required for both you and your spouse if you are married filing jointly. If you have a new qualifying child in 2021, you will be able to provide their information in a separate tool this summer.

Optional info:

• Check the box if you or your spouse can be claimed by someone else as a dependent
• Recovery Rebate Credit amount: If you didnt get the full first or second stimulus check, you can enter the amount you are owed
• Bank account routing info: If you leave this blank, your payments will be mailed.
• Identity Protection PIN: only include if the IRS provided you a number because youve experienced identity theft.

After entering all the information that relates to you, click Continue to Step 2.

If you didnt receive your full first or second stimulus check, you can enter your Recovery Rebate Credit amount to get your money. Be sure you know the exact amount you received. If you dont enter the right amount, your CTC and stimulus checks may be delayed.

Heres how you calculate how much you are owed.

First stimulus check: $1,200 OR $2,400 + $500 per dependent