Importance of Filing Taxes

The word tax does not go well with most people. When the word tax is mentioned most people are scared since they do no like filing their taxes. Tax is a compulsory amount that is paid to the government as a percentage of your income. This income maybe earned from your job or from your business. It is a must that every citizen pays their taxes and makes a tax return. Taxes are calculated by tax calculators and one can go online and find free online tax calculator that will help in calculating the amount of tax one should pay. Accountants are responsible for calculating and deducting taxes from employees salaries in organizations. This article will highlight the benefits of filling taxes .

Individuals and businesses that file taxes have an easier way of being granted loans by banks and other financial institutions. One of the requirements of applying for loans is to clear yourself with the tax authority.

Filing taxes enable one to claim tax refund. Tax refund is claimed in case one had already been taxed in advance. Filing your taxes makes this possible . One foregoes tax refund if they do not file their taxes. Therefore there is loss of money in terms of failure to claim tax refund.

Filing taxes will make it possible to carry the loses forward by adjusting capital gains from previous years. .Failure to file taxes means that your losses will not be carried forward. Sometimes embassies require one to provide a certificate to show you have been filing taxes in order to get a visa to travel oversea. Without the certificate it means you will not be able to travel in such cases.

Getting some high profile jobs will require proof that you always file your tax returns. Failure to which means that you lose the opportunity of getting the job. This is one of the reasons why you must always file your taxes. Only tax compliant companies are awarded government tenders. It is therefore important for companies that are looking to conduct business with the government to ensure that they file their taxes. Tax receipts are also asked for the last couple of years. This is evident that you have enough money to carryout the business that the government gives you. Tax receipts reveal someone financial position.

when you want to purchase a high life insurance cover filing taxes will come in handy. Tax receipts are needed when one wants to buy a high life insurance cover. This is to enable the company to know how much money you make annually. The insurance cover is dependent on many things and the most important being income. If one does not have a high income which will be shown by tax receipts then it means they do not require high life insurance.

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