It’s tax time, and you may be debating with yourself about whether doing your own taxes is feasible or not.
You’ve done your research, weighed the pros and cons of self-filing vs using an accountant, and the first scenario’s won.
So now, are you wondering how to do your own taxes? Then here are 7 tips you need to learn.
1. Get All Your Paperwork Together
When filing taxes, you need to get all the relevant paperwork together before you even start. This includes:
- W-2s from every employer
- 1099s from every client
- Interest statements for your mortgage
- Deductible expense receipts if you run your own business
This isn’t an exhaustive list, so think about any other financial papers that might be helpful in filing.
2. Find out What Filing Status You Are
This is an easy step, since it’s basically just noting how your household’s like. Choose one of the following five statuses:
- Married, filing jointly
- Married, filing separately
- Head of household (not married but have at least one dependent)
- Widow/widower with dependents
If you file as married, filing jointly, you must have gotten married on or before December 31st of the year you’re filing in. Otherwise, you can’t file as this status.
3. Check Your Tax Deductions
When it comes to taxes, it’s not always you paying out. Most people are eligible for deductions and credits.
Many depend on your filing status and if you have children or not. If this gets too confusing to figure out, you can always use a site like us.icalculator.info to make this step easier.
4. Download All Forms From the IRS
The IRS provides all relevant forms on their website, which makes it very simple to just look them up. What’s great is they’re all free to download, so you won’t have to spend a penny to do so.
For more complicated tax returns, you should try and do everything online. They have free fillable forms available.
Otherwise, if you prefer pen and paper, and your financial situation isn’t complicated, then you can always print the forms, fill them out, and mail them in.
5. Use Tax Software
Many people also opt to use tax software programs. In most cases, if you have a simple financial situation, then you won’t really need one. You can just follow tip #3.
Otherwise, tax software may be beneficial. It may cost you some money, but it’ll be worth it because it walks you through the entire process. You’ll get peace of mind knowing you haven’t forgotten to fill out something important on the form.
Plus, many have the option of direct deposit. When you e-file, you’ll get your tax refund much quicker.
Know How to Do Your Own Taxes
If your finances are simple enough, then you can certainly learn how to do your own taxes. By knowing how to file taxes online on your own, you can definitely save some money.
For more helpful financial information, please take a look at our other blog articles.