The duration it takes to process taxes can vary for several reasons:
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Complexity of Tax Returns: If your tax situation is complicated, with multiple income sources, deductions, or credits, it may take longer to prepare and process your return.
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IRS Workload: The IRS handles millions of tax returns each year, and during peak tax season, their workload can slow down processing times.
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Filing Method: Electronic returns are generally processed faster than paper returns. If you file by mail, it can take longer for the IRS to receive and process your return.
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Errors or Incomplete Returns: If there are mistakes on your return or if you’ve submitted it without all necessary documentation, this can delay processing.
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Review Processes: Sometimes, the IRS may select a return for review, which can extend the time needed to resolve and process it.
As for when you need to start paying taxes, it typically depends on your income level and filing status. In the United States, you're generally required to file a federal tax return if your income exceeds a certain threshold, which can change annually. For the 2023 tax year, for example, single filers under age 65 must file if their gross income is at least $13,850.
Here are some general guidelines for when you might need to start paying taxes:
- Earned Income: If you have a job and earn income, you may need to file a return, even if you are below the threshold amount due to other factors (like having taxes withheld).
- Self-Employment: If you are self-employed and earn $400 or more, you are required to file a return regardless of your age.
It's wise to consult the IRS guidelines or a tax professional for specific advice based on your personal circumstances and to ensure compliance with tax laws.