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Client, Kyrian Robertson, 29 years old, is a software Engineer and a taxpayer in the United States with no dependents and is not married, want to file federal income tax returns for 2022. Kyrian has earned a total income of $45,000 in 2022, has to contribute $2,000 for his retirement plan in his traditional IRA (Individual Retirement Account), and has a pending student loan interest of $1,000 for 2022. Client wants to determine the correct tax forms to file as an individual taxpayer in the US.
Form 1040 US Individual Income Tax Return – This form is used by most taxpayers to report their Income, Deductions and Credits. There are several variations of Form 1040 depending on taxpayers filing status i.e. Single, Married Filing Jointly, Married Filing Separately, Head of Household, Income Level and other factors. For example taxpayers with more complex tax situations may need to file Form 1040 along with Schedule A to itemize their deductions OR Form 1040 along with Schedule C to report self employment income.
Form 1040 – SR – US tax Returns for Senior – This form is meant for people who are 65 years and above in US. It is very similar to the standard Form 1040 but designated to make tax filing process easier for seniors.
Form 1040 – X – Amended US Individual Income Tax Return – This form is used to correct errors or make changes to previously filed tax returns like correcting filing status, reporting additional income, claiming deductions / credits or changing number of exemptions that have been claimed. This form is filed only after filing original tax return.
Filing Due date (Non Extended Due Date): April 15th every year; 6-month extension (Extended Due Date) by filing Form 4868: October 15th. Penalties – This is summarized as under:
Late filing: 5% p.m. of net tax liability
Late payment: 0.5% p.m. of net tax liability ; 5% p.m. max limit Max penalty: 25%
Single: Unmarried OR Married but legally separated
Married filing jointly (MFJ) i.e. Married as of year end, OR spouse dies during the year and surviving spouse does not remarry OR, Living apart Married filing separately (MFS) i.e.
Each spouse filing separately Head of Household (HOH):
Qualifying Surviving Spouse (QSS):
His options would be one of the two stated as under:
Married filing jointly (MFJ) i.e. Married as of year end, OR spouse dies during the year and surviving spouse does not remarry OR, Living apart Married filing separately (MFS) i.e. Each spouse filing separately
According to Publication # 556 of September, 2013, Form 843 can be used by Taxpayers to claim a refund (or abatement) of certain overpaid (or over assessed) taxes, interest, penalties, and additions to tax.
Section 6511(a) of IRC cites as following:
This time period is called the Refund Statute Expiration Date (RSED). Here Client did not file the return and paid taxes 27 months ago, the time limit to file for refunds for him is 2 years from the date of tax payment. Therefore Client can’t file for a refund. As per IRC Section 6511(b)(1), no credit or refund shall be allowed or made after the expiration of the period of limitation prescribed in Section 6511(a) for the filing of a claim for refund, unless a claim is filed within such period.
However, deadlines for claiming a refund can be extended if: