Rules that students must abide by while filing taxes
The entire procedure for filing taxes seems intimidating for most of the people. Well, it’s natural to be concerned about how to do it in the right way. There are a lot of rules regarding taxation policies that you need to understand. Although taxation laws change from one geographical area to another, following certain factors can make things easier. Read on further to get some tips on preparing your first tax return:
1. Always file your income tax return
The taxation law makes it mandatory for any person to file his tax returns in case his income exceeds a certain level. These norms generally vary on the basis of one’s income, work, and gender. If a person is an employee of any organisation, he/she is obliged to fill the W-2 form, which presents the proof of employment and the salary. In case of a business holder, the law requires him/her to present the detailed proof of his incomes and expenses. As a student, most of you might not have a regular job or a business. But still, you should give information about your present status to the government. Especially, in case you own a property gifted by your parents or extravagant with your pocket money, not filing a tax return would be a blunder.
2. You cannot claim exemptions as a dependent
Most students fall into the category of dependents, but this does not make them liable for any tax exemption. As per most taxation laws across the world, a dependent can be either a legal child or a relative who meets certain conditions such as age(minor), income, and full-time student status. Knowing your status as a dependent on your parents or a relative, you cannot claim any exemptions when filing the taxes.
3. Take advice from an expert
Many colleges provide free guidance on taxation policies to their students. They have a special department for this, and in some cases, the professors and volunteers come forward for help. If your college has any such department, you can visit there for all sort of queries. Alternatively, you can also seek help from an online taxation expert or a professional chartered accountant. Hiring a tax advisor or an accountant can prove beneficial for those who fall under the tax-paying category. A professional expert can prepare your taxes for you and even help you find deductions to reduce your tax bill.
4. Start preparing early
In most countries, the deadline to file a tax return falls somewhere between 31st March and 30th April, i.e., the closure of a financial year. But one should not wait for the last day to file the returns and begin the process well in advance. This would give enough time to gather the documents and seek advice from professionals, especially if you are still learning the process.
5. Don’t overlook deductions
If you’re a college or school-goer who pays a hefty sum of tax, then you can opt for certain deductions while filing your income tax returns. Be sure to check the government’s policy regarding education tax credits and income tax credit.
6. Beware of scams
You should always remain skeptical about “identity thieves” who might misuse your information. These cyber criminals may reach you through emails, messages, live chats, or phone calls. So, never reveal your personal information to any of them. Moreover, always trust a certified professional for tax assistance and beware of fraudulent websites.
7. Don’t forget to self-attest
While filling your tax returns, double-check the data and documents attached with the form and do not forget to self-attest them by signing and putting the date. If the government provides the provision for e-filling, it’s better to choose this mode as it reduces errors.
These were the basic norms a first-time taxpayer should follow while filling the income tax returns. For more information, go through the taxation policies of your land. If you are struggling with assignments of this subjects, feel free to seek assistance from the taxation assignment help experts working at Global Assignment Help. They have so far helped many students with high-quality assignments on the topics of Income tax and NIC liabilities, Chargeable gains for individuals, Value added tax, Corporation tax liabilities and Inheritance tax.