Knowing your tax status is crucial for understanding your tax obligations and ensuring you are fulfilling them correctly. Checking your tax status involves determining whether you are classified as a resident or non-resident taxpayer and understanding the implications of this classification on your tax liability.
Understanding your tax status is essential for several reasons. Firstly, it helps you determine which tax forms you need to file and the deadlines for filing them. Secondly, it ensures you are claiming the correct tax allowances and deductions, reducing the risk of overpaying taxes. Thirdly, it helps you avoid potential penalties and interest charges that may arise from incorrect tax filing.