How to file your own taxes

Introduction

If you’ve never filed a tax return before, it’s natural to have questions and to feel like the process is overwhelming. Paying taxes can be complex, but it doesn’t have to be if you follow simple instructions and avoid common mistakes. In this guide, we’ll explain how to file your own taxes and share tips to prevent stress and ensure your return is ready on time.

Do I need to file a tax return?

Before you go through the process of getting ready to file a tax return, it’s important to make sure that you need to submit a return. You may not be required to file a federal tax return if your income is lower than the specified threshold. Values vary according to your marital status and age. If you are single and you are aged under 65 and you earned less than $12,550 in 2021, for example, you wouldn’t have had to file a tax return in 2022.

DIY taxes: How to file your own taxes

If you are required to file a tax return, follow these steps:

• Collect the relevant paperwork

  To file your tax return, you’ll need to ensure you have the relevant paperwork. This includes a W-2 form from every employer you have and statements from other sources of income, including 1099 and 1099-INT forms. If you are claiming itemized deductions for expenses or charitable donations, you should also gather receipts and invoices together. It’s important to make sure that you have all the documents you need in advance of the deadline.

• Select your filing status

  Your filing status determines whether you are filing your return as an individual or as part of a married couple.

• Choose how to file your tax return

  There are various tools and systems you can use to file your tax return, including accounting and tax software. The IRS provides free access to tax preparation software for people on low incomes and online forms for those with higher incomes. There are also useful guides online that you can use to compile information for your report. If you have questions about your tax return, you can also consult advisers. You can use online tools and calculators to estimate your tax payment before you file your return.

• Learn about credits and deductions

  Before you can calculate how much tax you owe, it’s beneficial to learn about credits and deductions and see if you are eligible to take advantage of incentives or tax reductions. If you have made a donation to charity, for example, or you are self-employed, you may be able to claim credits or deductions that will lower your tax bill. If you are self-employed, calculate business expenses before you start filling in your return. It’s also beneficial to see if you can claim savings credits if you are contributing to a retirement plan.

• Check deadlines

  Check the deadlines for your state and make sure that you have plenty of time to get the paperwork in order, calculate tax liabilities and submit your return. The tax deadline for 2022 was April 18th with the exception of Maine and Massachusetts where the deadline was April 19th.

• Make your payment

  If you have money to pay, you can transfer money from your bank account or use a debit or credit card or a payment wallet. Payment plans are also available to spread the cost.

Summary

Filing your own tax return can be a daunting prospect, but there is help available. Follow instructions, make sure you have the relevant paperwork and documents to hand and make use of guides, online tools and tax software.