Importance of Filing Tax Returns

07 Jan

Property, estate, consumption, and income taxes are the four main types of taxes. You have to ensure that each year you give a part of the value for the property you own to the state government. Income tax is levied directly from your personal income and in most states; the poor are exempted from paying such.  With estate tax, the goods and property taken from an estate can be sold in order to raise money to be used by the government.  Consumption taxes tend to be in the form of tariffs, sales taxes, and usage fees.  It is important to note that consumption taxes are easier to collect than income taxes, even though they require extensive recording and auditing.  There are taxes that are levied to discourage the consumption of some items.  The government can minimize the use of alcohol, tobacco, or services like prostitution by levying a tax, sin tax, on the citizens. Generally, their consumption is not fit for human health.  

The government uses the tax paid to pay for the services that it offers to the community.  It is hard for a community that does not have clerks, administrators, freighters, and maintenance workers to function well because these people are a vital part of society. You should note that these people should be paid.  If you realize that the taxes affect the poor people more than they do to the rich; we can say that they are regressive.  On the other hand, the taxes that affect the wealthy people more than the poor are termed as progressive. Check How To Get W-2 From Previous Employer to learn more.

It can be difficult to get a vehicle loan especially if you do not file your tax returns. It is important to note that most banks ask for the copy of the tax returns.  In addition, you can show the copy if the loan application is rejected and that could save you.  Those people who get lower loan limits can use their returns to claim higher limits. Moreover, it is hard for you to claim any refund if you do not file your tax returns.  Check How To Get W2 From old job for more info.

Filing your tax returns can help you during visa processing.  You should not go for the visa interview before filing your tax. Depending on where you want to go, you can be asked to produce receipts to prove that you file your returns in the last three years; others require you to show your recent certificates.  It is a great way to prove to them that you depend on yourself. Whichever, form in which tax takes; the principal aim is to ensure that everyone in a certain country enjoys the services that the government has to offer. Visit for other references.

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