Filing Taxes
01.The Annual Form Puzzle
Filing taxes is the process of filling out form 1040—the US Individual Income Tax Return. On this form, adults list exactly how much money they earned, how much tax was already withheld from their paychecks, and calculate their final tax bill.
02.Doing the Math
If the amount of tax withheld during the year matches your final tax bill, you are all set! But if the numbers don't match, you either have to pay the IRS more money, or the IRS has to send you money back.
03.Tax Software
Because tax rules are complicated, most adults use tax software or hire professional accountants (CPAs) to help them fill out the forms correctly. It ensures they don't make mistakes or pay too much.