Are you dreading tax season? Don’t worry; we’re here to help! This blog post will walk you through everything you need to know about filing your taxes. We’ll cover topics like which forms to use, what paperwork you need, and where to go for help if needed. By the end of this post, you’ll be ready to tackle your taxes with confidence!
This Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.
Gather all the necessary documents, including your W-2 form from your employer and any 1099 forms for other income sources
Gathering your important tax documents is an important part of filing your taxes. Depending on your income sources, you’ll need to make sure you have either a W-2 form from an employer if you had traditional wages in 2019, or 1099 forms for any other sources of income.
Freelancers, independent contractors, and people who received a pension or retirement may need to be aware that some payments usually come with 1099s instead of W-2s. It’s best to double check that all the forms are correct and that everything has been reported correctly before you submit your taxes. Make sure not to leave any documents out, as it could ultimately lead to more headaches down the road.
Choose which filing status you will use – single, married filing jointly, etc.
Choosing the right filing status can significantly impact your taxes and determine how much you will pay. It is important to take the time to choose the best fit for your individual situation, since filing as a single person, married couple, or head of household all come with their own advantages and disadvantages.
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There are different taxable income thresholds for each filing status; for example, if you are single then you may receive a tax deduction if your adjusted gross income (AGI) is less than $12,400.
For those who are married filing joint returns, the AGI must be below $24,800 to be eligible for a deduction.
Additionally, depending on the size of your family and whether or not you are caring for dependents such as children or elderly relatives, selecting the appropriate status can be an important way to gain additional financial benefits from tax season.
Enter your personal information into the tax software or online filing system
Filing taxes can seem intimidating, but entering your personal information into the tax software or an online filing system makes it much simpler. This is also necessary to ensure that the taxes are filed accurately and on time.
Before beginning the process, make sure you have all of your necessary documents like w2 forms and 1099s, if applicable. When filling out the online filing system, be sure to pay attention to instructions in order to properly enter your information and review it before submitting.
Doing this will reduce the chances of any mistakes being made and will give you peace of mind that your taxes are completed correctly.
Determine which deductions and credits you are eligible for
Knowing which deductions and credits you are eligible for can help you make the most of your finances. Filing your taxes can be intimidating and confusing, but reviewing your situation can lead to significant financial savings.
Doing a little research about what credits you may qualify for such as education, child care, energy-related expenses, or home purchase deductions will go a long way in helping you save money.
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Start by looking at IRS sources like IRS.gov or a tax specialist who may be able to provide greater insight into your particular situation. Thanking the proper steps today will set you up for potential savings on future taxes.
Follow the instructions to file your taxes electronically or by mail
Filing your taxes doesn’t have to be a daunting task. You can easily choose the method best suited to your preferences and needs: online filing or mailing them in. If you choose to file electronically, IRS e-file is the safe, secure and easy way to file taxes—simply search for a product that fits your needs, start by filling in basic information and watch as it guides you through the entire process.
If you’re more comfortable with mail-in filing, make sure you include all your taxpayer information, and documentation for deductions and credits, sign the forms and attach any supporting documents; make sure to send it before the due date. Whichever route you prefer, if you follow instructions carefully, your taxes will be done promptly and correctly.
Pay any taxes owed by the April 15th deadline (or request an extension if needed)
As April rolls around, it’s time to take care of your taxes. Make sure you pay any taxes owed by the April 15th deadline or request an extension if needed.
While there are significant penalties for filing late, or not at all, requesting an extension grants you additional time to receive necessary documents and research your deductions correctly. Consider asking a tax advisor for their help; this could save you a great deal of money over the long run. Preparing and paying one’s taxes on time is essential in order to avoid potential future issues worse than just a penalty fee.
Filing your taxes doesn’t have to be a confusing or stressful process. By gathering the necessary documents, choosing your filing status, and determining which deductions and credits you’re eligible for, you can easily file your taxes yourself – and save money in the process! And if you need help, there are plenty of online resources or tax professionals who can assist you. So take a deep breath and get started on your taxes today – it’s not as difficult as you might think!
