How to Do Your Own Taxes?
Wondering how to do your own taxes? Taxes may be a scary topic, and the thought of doing it yourself can be even more daunting. However, given you are prepared with the right documents and tools, it could empower you to file taxes yourself! Save that coin!
This post is about how to do your own taxes.
Let’s dive into the top 5 ways on how to do your own taxes.
1. Gather Your Documents
You’ll need the necessary documents to fill out the forms. It’s easiest to fill out the forms in the most accurate way possible when having the documents to reference from.
2. Standard Deduction vs Itemized
Standard Deduction is the flat amount you can deduct; this amount is different every year.
Itemized Deduction is if the total deductions total up to more than the standard deduction.
3. Fill Out the Tax Forms
The main tax form is Form 1040. Depending on your tax situation, you could require certain Schedules and Attachments.
4. File Your Taxes
There are multiple ways you can file your taxes: manual, tax software, and free filing options.
Manual filing includes downloading the forms available from the IRS website, filling them out by paper, and mailing them.
Tax software: popular options are TurboTax, H&R Block, and TaxAct. Any one of these softwares will offer an option to file through them.
Free filing options: IRS offers free file for certain people who qualify.
5. Reconcile: Pay or Choose Refund
Throughout the process of filling out those forms, you’ll ultimately find out whether you owe taxes or a refund is owed to you. If you owe taxes, the IRS offers several options: paying online, by check, or other accepted payment methods. If a refund is owed to you, there are several options in which you can choose to receive the refund: direct deposit, check, U.S. savings bonds, prepaid debit card, or apply to next year’s taxes.
To reiterate, the top 5 ways on how to do your own taxes are:
- Gather Your Documents
- Standard Deduction vs Itemized
- Fill Out the Tax Forms
- File Your Taxes
- File Your Taxes
- Reconcile: Pay or Choose Refund
There you have it! Interested in learning more about taxes? Check this post out for the best tax software for free.
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