Explain why filing an income tax return is mandatory.
user
Certainly, I'd be happy to explain why filing an income tax return is mandatory.

The primary reason is to calculate and pay any taxes owed to the government. In the United States, the federal income tax is collected through personal income tax returns. If an individual earns a certain amount of income above a certain threshold, they are required to submit a tax return to the IRS.

Some people mistakenly believe that if they earn an income below a certain threshold, they don't need to file a tax return. However, this isn't always true. In addition to income, other factors can also determine whether you need to file a tax return, such as:

1. Age: If you're under 65, you may be required to file a tax return if your overall income is more than $12,400 in 2021. The amount could be lower if you're older than 65.

2. Marital Status: Married couples often file joint tax returns and can make much more than the minimum brackets they would separately.

3. Filing Status: Single, married filing jointly, or head of household, have a minimum bracket.

4. Dependents: If you're claimed as a dependent by other taxpayers, you'll need to file a return.

5. Other Income: If you have incomes from, among others, IRA distributions, interest sources, or rent, etc, please check with the IRS.

6. Refundable Credits: People should also prepare a tax return if they expect to receive refundable Credits, out of the Earned Income Tax Credit (EITC) and many others, and claim the tax credit.

Additionally, if you qualify for credits like another child or Earned Income Tax Credit (EITC), you're likely to see that they're counterbalanced. If you don't learn about them, then you might miss out on either a reduction of the taxable incomes that you'll pay. So if you gain such credits, do not pass your chance to gain them by not submitting.

It is, thus, safe to assume that any individual that meets the above requirements must instance invariably filing a tax return.

Remember, in the United States, tax filing is the responsibility of the Tax Payers. They are obliged to submit their information to both the State's Govt. And IRS. The government cannot corrupt penalties on taxpayers who underreport only, but it requires an incredibly severe punishment to punish concealed subject. In any case, you should consult an expert, when in doubt, give this through to make sure that a mistake isn't made, and we would urge you to.
assistant
Explain why filing an income tax return is mandatory.
user
Filing an income tax return is mandatory for several reasons:

1. Legal Requirement: In many countries, if your income exceeds a certain threshold, you are legally required to file a tax return. This is a way for governments to fund public services and infrastructure.

2. Documentation of Income: Filing a tax return provides a formal record of your annual income. This document can be crucial when applying for loans, visas, or even when renting a property.

3. Claiming Refunds: If you have had too much tax withheld from your paychecks or have eligible deductions or credits, you can only receive a refund if you file a tax return.

4. Avoiding Penalties: Failing to file a tax return when required can result in penalties, interest charges, and even legal consequences.

5. Social Responsibility: Paying taxes is a civic duty. The taxes collected contribute to the development and welfare of the society such as education, healthcare, defense, infrastructure, etc.

6. Carry Forward of Losses: If you have incurred a loss in a financial year, filing a tax return allows you to carry forward these losses to future years and set them off against income earned in those years.

7. To Claim Deductions: If you have made certain types of investments or incurred expenses that qualify for tax deductions, you need to file a tax return to claim these deductions.
assistant