Taxes · Module 4 of 6
The paperwork year
Filing your tax return: who needs to, when it’s due, whether to pay for help, and how to fix a mistake.
Key terms in The paperwork year
- Form 1040
Form 1040 is the main document U.S. taxpayers use to file an annual federal income tax return. Other schedules attach to it when a filer has additional income, claims adjustments or credits, or owes extra taxes. A simplified variant, Form 1040-SR, exists as an option for people aged 65 and older.
Source: Internal Revenue Service, About Form 1040, U.S. Individual Income Tax Return
- Filing status
Filing status is a yearly category that a U.S. taxpayer chooses to describe their household situation on a return. The five options are single, married filing jointly, married filing separately, head of household and qualifying surviving spouse. The choice affects the standard deduction, the amount of tax and eligibility for some credits.
- Filing extension
A filing extension gives a taxpayer extra time to submit a return without a late-filing penalty. In the United States it moves the deadline from April to October. It does not push back the date for paying any tax due, so an estimated payment is still expected by the original deadline.
Source: Internal Revenue Service, Get an extension to file your tax return
- Failure-to-pay penalty
A failure-to-pay penalty is a charge added when tax owed is not paid by the due date. In the United States it accrues monthly on the unpaid balance up to a cap, and interest also runs on the amount outstanding. A separate failure-to-file penalty applies when a return is submitted late.
Source: Internal Revenue Service, Topic no. 653, IRS notices and bills, penalties, and interest charges
Every term on Lever is in the money glossary.
About this module
The paperwork year is part of Taxes, one of 15 subjects in Lever. It’s a short run of 7 lessons, about 18 minutes in all, so you can finish it in one sitting.
Every lesson takes one idea at a time. You read it with the math worked out step by step, answer a question that puts it to use, then see why the right answer is right and why the others aren’t.
It’s for anyone who was never taught this, and you don’t need to know anything first. Every lesson is free. Lever works out what you already know, so you can start here or let your path bring you to it.
More in Taxes
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1
The part that is not yours
Why we pay taxes, what income they’re worked out on, and how to set tax aside yourself when no one does it for you.
5 lessons -
2
What your rate really is
How tax brackets really work, and the difference between the rate on extra income and the rate you actually paid.
5 lessons -
3
What you can subtract
Tax deductions versus tax credits, the standard amount versus itemizing, and keeping proof for your claims.
8 lessons -
5
What was already taken
The tax taken from your paycheck, why it’s never exactly right, and how it gets squared up at the end of the year.
5 lessons -
6
Money that is not wages
How tax works on investment gains, losses and dividends, and how a loss can lower the tax on a gain.
6 lessons
Try this module
It’s part of Taxes. Lever will bring it to you when you’re ready, or you can go straight there.