It’s officially tax season! Did you know that all income, whether earned from work or resulting from investments, is subject to tax reporting and taxation? Financial institutions send annual informational tax returns to the IRS and individual taxpayers showing income to the taxpayer.
To help taxpayers complete their income tax return forms, the IRS provides free publications on various tax subjects for your tax returns. These publications are also available online for convenient download. Use the information on the appropriate tax forms to complete your returns. When you receive informational returns from financial institutions, verify that they are accurate. Accuracy is vital to ensure that you submit the correct information; that way, you can reduce the chance of a run-in with the IRS. The individual taxpayer is ultimately responsible for accurate reporting and paying the correct amount of income tax.
For more information on all things tax-related this tax season, check out our extensive course library. There you will find a range of courses from tax basics to more detailed topics.