• Taxes are financial charges governments impose to fund their debt and operations. Governments can impose taxes on all kinds of activities, such as the buying and selling of property, owning property and earning income. Individuals are required to file income tax returns to verify that they have paid the government the correct amount. It is important to be aware of basic tax rules so that you avoid penalties and get the most out of your tax return.
  
  

Filing Deadline

• The deadline for filing income tax returns is April 15 of the year following the tax year in question. File your tax return on time to avoid extra charges and get any tax refund you are owed in a timely manner; failing to file your return by the deadline may result in extra financial charges. A return is considered to be filed on time if it is postmarked by April 15 or sent out via an electronic filing service by April 15. If you do not owe additional taxes or are owed a refund, you may not suffer any penalty for late filing, but it may delay a refund. Consider filing your return a few months early to receive your refund as early as possible.
  
  

Deductions

• Tax deductions are expenses that can reduce the amount of tax you owe by lowering your taxable income. One of the most important decisions when filing a tax return is whether to itemize your deductions or accept the standard tax deduction. All filers are granted a set standard tax deduction that they can subtract from their taxable income. According to TurboTax, the standard deduction was $5,700 for an individual and $11,400 for married couples filing jointly in 2009. If you choose to itemize your deductions, you forfeit the standard deduction but are able to deduct a range of expenses such as business expenses, charitable contributions, mortgage interest and certain investment losses. Make a comprehensive list of possible itemized deductions and compare the total to the standard deduction you are eligible for. If the total is greater than the standard deduction, you stand to save money by itemizing your deductions.
  
  

Tax Withholding

• Traditional employees have income taxes withheld automatically from their paychecks. This system makes it easy for employees to pay taxes and often results in employees being eligible for refunds, rather than having to pay money at tax time. File estimated tax payments throughout the year if you earn money from your own business or as an independent contractor who does not automatically have tax withheld. Failing to make adequate estimated payments or to report self-employment income on your tax return can result in penalties. If you overestimate your earnings you can get money back when you file your tax return. Create a detailed record of all estimated payments you make so you can refer to it when you file your return at the end of the year.