What are personal taxes?
Personal taxes, also known as personal income taxes or individual taxes, are a way for the government to collect money from individuals based on their income. When you work and earn money, a portion of your income goes towards personal taxes.
Doing your own personal taxes can feel overwhelming, especially if you’re new to filing taxes or had a recent change like starting a job or launching a business. Or maybe you recently got married or divorced, or had a child. Whatever your situation, filing accurately and on time helps you avoid penalties and make the most of available deductions.
How to file personal taxes
When it's time to file personal taxes, you need to submit your personal tax return. You can either prepare it yourself or use tax preparation software. Either way, your filing will include information about your income, the taxes you’ve already paid, and any deductions or credits you want to claim.
There are thousands of credits and deductions available — more than the average taxpayer is expected to know — so using trusted IRS tools or reliable resources can help ensure you take advantage of all the deductions and credits available to lower your personal taxes.
Filing married taxes vs. single
When you're married, you have the option to either file married taxes jointly with your spouse or to file separately. Whether you’re recently married or have been married for many years, you may be wondering which is best for this year’s taxes. Whatever your situation, it’s worth comparing both scenarios to see which is best for you.
Filing married taxes separately means you'll each file your own personal tax return. This option may be beneficial in certain situations, such as if one spouse has significant medical expenses or if you want to keep your finances separate. On the other hand, filing taxes jointly as a married couple may result in a lower tax rate and allow you to claim various tax deductions and credits that might not be available when filing separately.
How much is a personal tax?
Personal tax is the amount of tax that an individual pays depending on their:
- Income level.
- Filing status.
- Eligibility for specific deductions or credits.
Personal tax is usually calculated based on a percentage of an individual's taxable income, which is their income after deductions and credits.
Who has to file personal taxes?
If you work or receive other income in the United States, you probably have to file personal taxes. U.S. citizens and permanent residents who earn income abroad may also be required to file personal taxes. If you earn a very small amount of income, you may not be required to file personal taxes, but you may still want to file them because in many cases you will get a refund.
What documents will I need to file my taxes?
Knowing what documentation you need to file your income tax return can streamline the process. Obtain and organize the following documents before you begin your tax return:
- Names and social security numbers for all dependents.
- W-2 Forms from all employers from whom you (and your spouse, if married filing joint tax returns) earned wages during the tax year.
- Form W2-G for any gambling winnings.
- Form 1099-NEC or 1099-MISC, as applicable, for any non-employment income (such as income earned as an independent contractor for a side job).
- Records of income and expenses related to self-employment.
- Form 1099-DIV for dividend income.
- Form 1099-INT for interest income.
- Form 1099-G for unemployment compensation or other government payments.
- Form 1099-R if you took a distribution from a retirement plan.
- 1098 forms.
- Records of rental income and expenses.
- Health savings account forms (5498-SA or 1099-SA).
- Records of alimony paid or received.
- Amount of any state tax refund received during the tax year.
- Substantiation for charitable donations.
- Documentation of medical expenses, if you intend to itemize deductions.
This list includes the most common forms and documentation needed to prepare personal income tax returns. Depending on your situation, you may need additional information.
What are some deductions I can use for my personal taxes?
When you file your individual income tax returns, you have the option of using the standard deduction, which varies based on your filing status, or itemizing deductions. Generally, it makes sense to use whichever method results in obtaining the highest total deduction amount. If you choose to itemize deductions, you may be eligible to claim some or all of the following personal tax deductions:
- Taxes paid during the tax year, including certain state and local taxes, property taxes, real estate taxes, and sales taxes.
- Charitable contributions.
- Gambling losses, but only to the extent of gambling winnings.
- Mortgage interest paid.
- Medical expenses that exceed 7.5% of your adjusted gross income.
There are other deductions that you may be able to claim whether you use the standard deduction or itemize deductions. Here are some of the additional deductions that you may be able to claim:
- Student loan interest paid.
- Contributions to retirement accounts.
- Health savings account (HSA) contributions.
- Expenses related to self-employment, if you earned income as an entrepreneur or independent contractor.
- Educator expenses of up to the allowable limit for eligible educators.
What if I can't pay the taxes due when I file?
Generally, your tax debt is due by the filing deadline. Filing an extension does not change the date by which you need to pay. If you cannot pay your entire amount due, you'll need to apply for an IRS payment plan. Applying online is simple and you will be notified right away if your payment plan is approved. Payment options include full payment, long-term payment plans, and short-term payment plans. You may also be required to pay setup fees, penalties, and interest. If you need to apply for another person, you may need to be assigned as their agent under a Power of Attorney.
What you need to apply for an IRS payment plan:
- If your business owes taxes, you may be able to qualify for a long-term payment plan.
- Your name as it appears on your returns and with the Social Security Administration.
- An email address.
- Address from the most recent return.
- Date of birth.
- Filing status.
- Social Security number or Individual Tax ID number (ITIN).
- Your Identity Protection PIN (IP PIN) if you have applied before.
What happens if I do not withhold enough for taxes?
If you suspect that you are not withholding enough due to tax law changes or income changes, you can change your withholding amount at any time. Simply request a W-4 form from your employer and change the amount. You can even request that an additional amount is withheld per check if desired. Use the IRS Tax Withholding Estimator to figure out the withholding amount that works for you. If you overpay, the extra amount will be paid back to you as a tax refund when you file your annual tax return. If you do not have enough withheld, you will need to pay the difference when you file.
How do taxes work when you get married?
When you get married, your tax situation may change depending on various factors such as your filing status, income, deductions, and credits. Here are some general guidelines on how taxes work when you get married:
- Filing Status: After getting married, you can choose to file your taxes jointly or separately. Filing jointly means you and your spouse file one tax return together, while filing separately means you and your spouse each have a separate tax return. Generally, filing jointly can result in a lower tax bill, as it allows you to take advantage of certain tax credits and deductions.
- Income: Your combined income as a married couple may affect your tax bracket and tax liability. The higher your income, the more taxes you may owe.
- Deductions and Credits: As a married couple, you may be eligible for certain deductions and credits that can lower your tax bill. For example, you may be able to claim a higher standard deduction, a deduction for mortgage interest, or the Earned Income Tax Credit (EITC).
- Withholding: After getting married, you may want to adjust your tax withholding to ensure that you're paying the right amount of taxes throughout the year. You can do this by filling out a new W-4 form with your employer.
Do you get a better tax return if you are married?
Getting a better tax return after marriage depends on your income, deductions, credits, and other factors. Married couples can often take advantage of certain tax benefits that are not available to single individuals, such as the ability to file jointly and potentially receive a higher standard deduction.
However, the actual amount of your tax return will depend on your specific financial situation, as well as any changes in tax laws and regulations.
How much do married couples get back in taxes?
The amount of tax refund or liability for a married couple depends on various factors such as their combined income, filing status, deductions, and credits.
Generally, if a married couple files their taxes jointly, they may be eligible for certain tax benefits such as a higher standard deduction, lower tax rates, and more credits. However, if both spouses have a high income, they may also face a higher tax rate and phase-out of certain deductions and credits.
It's important to note that each couple's tax situation is unique, so the amount will vary from one couple to another.
Please note: This page offers general legal information, not but not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.
