How to Know the Minimum Amount to File Taxes
We are all required to pay taxes in one form or another. There are many kinds of taxes, both direct and indirect that are levied on us. Some of these are levied on all irrespective of their income while others take into account this factor.
In case of income tax, it is levied on people with a certain minimum amount of income for a given year. If you are below this income level, you will not need to pay any income tax. There are many ways in which you can know the minimum amount of income to pay taxes on.
Instructions
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1
Determine Your Taxable Income
Before you do anything else, this is what you need to do. Calculate your total earnings in the given fiscal year. Once you have done that, you need to sum up the tax deductible expenditures that you have incurred during the year. These can range from payments to charities to college payments and so on. Once you deduct these from the total income, you will have the income for the purpose of taxes. It is this amount that is important since if this is below the tax net, you will not need to make any payments or even claim a refund on already paid taxes. -
2
Visit the Tax Department
This is the most obvious one wherever you live in the world. You can go the local tax office and ask them what is the minimum amount of income you should have in order to be tax exempt. If you fall in this bracket, you will not need to pay any taxes on your income. -
3
Tax Practitioner
You can also visit a tax practitioner to consult about the matter. They do this day in and day out and can very clearly explain to you the minimum amount of income for filing a return and the allowable deductions. -
4
Internet
You can visit financial forums where people discuss numerous matters and you can get the information from there. Also, there are many websites that provide these basic yet important information on many financial matters which can be of great help.
There is the option of visiting the website of the local tax department for this information if the forums do not have this for your particular area.
