How Much Money Do You Need To Make File Taxes? (2024 Update)

How Much Money Do You Need To Make File Taxes? – Do you know that as a citizen of a country, you are obligated to pay your tax just like the government is responsible for fulfilling its duties to you?

Tax payment is not a choice but an obligation that is stated in the constitution of the country. Most times some person seems to neglect this obligation.

Often times this seems to be paid after it must have accumulated to a higher amount. This is really binding in some countries on companies, businesses, etc.

For the benefit of persons who are just reading an article like this for the first time let’s talk about

What Is Tax Filing?

To file a tax is simply the submission or return of tax by a citizen who is known in this context as a taxpayer to the uniformed authority in line with the laid down rules and regulations.

Who Is Required to File a Tax?

A person required to file a tax include

1. Self-employed individual
2. Sole traders
3. Partnerships
4. Executors
5. Self-employed personnel’s
6. Permanent residents etc.

You have to note that this is different based on country. what is practiced in the US might not be the same as what is practiced in African countries and of course, we are all aware that the law that is being practiced in the US is quite different from what we are practicing for example in Nigeria.

Who is Exempted from Paying Tax?

The following list of companies or institutions types or individuals is exempted from paying tax

1. Companies or institutions that are engaged in ecclesiastical activities
2. Companies, institutions, or organizations that are involved in charitable activities
3. Institutions that are engaged in benevolent activities
4. Organizations that are engaged in educational activities
5. Children
6. Persons engaging in agribusiness

The types of tax systems we have

1. Regressive tax system
2. Progressive tax system
3. Proportional tax system

The basic types of tax we have is two namely;

1. Direct taxation
2. Indirect taxation

In this article we will be talking about the amount of money needed to file a tax and also the ways to file a tax

How Much Money Do You Need To Make File Taxes

Filling a tax amount differs in countries. The amount to file taxes in Nigeria is not the same as that of California or that of the United States is not the same with that of Rwanda.

Just like the laws vary the tax amount differs. Also, you have to note that the filing of tax amounts differs based on age and status.

Here is a list of the filing taxes amount

1. Single filling amount

$12,950 This is specifically for persons under the age of 65.

14,700  This is specifically for persons above the age of sixty-five (65) or older than that.

2. Married (jointly) amount

$25,900 This is applicable if both spouses are under the age of 65.

$27,300 This is applicable if one of the spouses is older than 65 and the other is below 65.

$28,700 This is applicable if both of them are sixty-five (65) or they are older than that.

3. Married but filing separately.

$5 for all ages

4. Head of the family or household

$19,400 for persons who are under the age of sixty-five (65).

$21,150 for persons above the age of sixty-five (65) or at sixty-five (65).

5. A qualified widow or widower with a dependent child

$25,900 for persons that are under the age of sixty-five (65)

$27,300 strictly for persons that are sixty-five (65) or are older than sixty-five (65)

How to Create Tax File

Here is a step-by-step guide on how to create a tax file

1. Using the income tax payers departments of your country launch the application or log on to the registration homepage
2. Visit the e-filling portal home page
3. Click on the register button
4. Click on other and select a category
5. Your selected category should be chartered accountant
6. Click on the Continue option
7. Fill in your personal details like your PAN, your date of birth, membership numbers, enrollment, and a list of other information requested from you
8. After you have been validated, you will be able to access the contact details page
9. Fill in the necessary information there and click on continue
10. Fill in the OTP that is sent to the mobile number you used for registration
11. Confirm the details you provided and if wrong correct them and then click the confirm button
12. Set your password and confirm it
13. Click on register
14. Once you are done with the registration you can now click on Proceed or Login button. The login detail is being sent to your email ID
15. You have successfully registered or created a filing portal online

Filling A Tax Return

This is a form that is among the forms of taxpayers. This particular form is filled with a tax authority. This tax form goes through records or reports of your income, expenses, and other necessary tax information.

In some countries, the taxpayer’s return form is used to detect the individual or taxpayer’s income, reliefs, and PAYE.

It is also noted that as a taxpayer or an individual, you are requested to file the return form within ninety (90) days from the beginning of every year’s assessments.

Filling returns also serve as identity proof for taxpayers or individuals. It is also used or needed in cases like AADHAR card relevant documents

Here are the different types of tax returns we have

1. 1040
2. 1040A
3. 1040EZ

Each of these is designed to get a different amount of money from the taxpayer for the Internal Revenue Service (IRS).

Persons Eligible to file a tax return include

1. Citizens of a country
2. Permanent residents
3. Workers
4. Self-employed individuals
5. Companies /institution

Conclusion

In this article we have been able to talk about filing a tax, the methods or steps one can use to create a tax file, the amount needed to file a tax, etc.

You have to note that filing a tax is different in counties with those included to file a tax and those exempted from filing a tax.

You should also note that you are only requested to file a tax to the tax authority in your country.

Frequently Asked Questions

Who is the person that is rated as eligible to pay tax in Nigeria?

The residents of the country /every citizen of the country.

What does it mean to file a tax?

To file a tax is simply the submission or return of tax by a citizen who is known in this context as a taxpayer to the uniformed authority in line with the laid down rules and regulations.

What does it mean to file a tax return?

This is a form that is among the forms of taxpayers. This particular form is filled with a tax authority.

This tax form goes through records or reports of your income, expenses, and other necessary tax information.

What are the different filing statuses we have?

1. Single
2. Married(jointly and separately)
3. Head of household

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