Filing your taxes can be daunting to say the least (even if you are good at math and reading complex instructions). If you are planning to paper file (and can't afford an accountant), the most important resource when you're filing these days is the IRS website. Much of their website is similar to the instruction booklet, but the information on the website is generally simplified enough to be understandable on the first try.
Only you can decide whether you want to file on paper or online. Before you begin either process, however, you should gather all receipts, W2(s), a pencil/pen, a calculator, and any instructions/forms if you are paper filing. I recommend keeping a folder for this, into which you can place receipts year-round so they will be handy when it's time to file. Double check your W2 against your last pay stub.
When you have everything ready, follow the instructions to determine which form (1040, etc) you need to file and whether there are additional forms you will need, such as Schedule A for itemized deductions, and your correct filing status. Most online tax services and software will determine these things for you. I recommend having 2 copies of every form.
It is easy to get frustrated and feel overwhelmed by all the lines. If you don't own or run your own business, you will actually fill in very little of your form except names, SSN's, wages, and deductions. If you live alone, you have even less to fill out. Good rule of thumb - if you don't have a clue what capital gains are, you probably don't need to put a number next to them, and so on.
If you are itemizing your deductions, add all your receipts, then add them again, then again and write them in on the Schedule A. Complete any worksheets, such as EIC. Now you are ready to begin filing. If you are filing online with a service, you probably won't need the instructions below, as they will ask you questions to help you determine everything you need to put in versus what you can skip. If you do file online, Print a copy of your form!!
Only you can decide whether you want to file on paper or online. Before you begin either process, however, you should gather all receipts, W2(s), a pencil/pen, a calculator, and any instructions/forms if you are paper filing. I recommend keeping a folder for this, into which you can place receipts year-round so they will be handy when it's time to file. Double check your W2 against your last pay stub.
When you have everything ready, follow the instructions to determine which form (1040, etc) you need to file and whether there are additional forms you will need, such as Schedule A for itemized deductions, and your correct filing status. Most online tax services and software will determine these things for you. I recommend having 2 copies of every form.
It is easy to get frustrated and feel overwhelmed by all the lines. If you don't own or run your own business, you will actually fill in very little of your form except names, SSN's, wages, and deductions. If you live alone, you have even less to fill out. Good rule of thumb - if you don't have a clue what capital gains are, you probably don't need to put a number next to them, and so on.
If you are itemizing your deductions, add all your receipts, then add them again, then again and write them in on the Schedule A. Complete any worksheets, such as EIC. Now you are ready to begin filing. If you are filing online with a service, you probably won't need the instructions below, as they will ask you questions to help you determine everything you need to put in versus what you can skip. If you do file online, Print a copy of your form!!
Stay tuned for my review of tax services and software - coming soon!
Comments
FYI - the line about Adjusted Gross Income should read "If you moved...had an HSA" Sorry about that!!
excellent info and tips!
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