Photo Credit: Stuart Miles
Chances are if you plan on getting an income tax refund you’re ready to file. For those of you planning to owe taxes this is probably a different story.
I have filed my own taxes every year. I also prepare taxes for my brother and this year, a friend.
Since I’ve always prepared my own taxes, have taken several accounting classes, and have had seven years’ experience filing quarterly taxes for businesses, I feel comfortable doing them on my own. And the truth is, unless you have a complicated situation, filing your own taxes is pretty simple. Free tax software will do all the heavy lifting for you.
Here are three tips for preparing your own income taxes.
Find the Right Software
You can file your federal taxes online for free using programs like Tax Act, Turbo Tax, or H&R Block. These programs will charge you to file a state return but this is usually a nominal fee. If your tax situation is complicated you may have to purchase an advanced version of the software.
In the past I’ve used Turbo Tax to file my own taxes. This year, however, I went with Tax Act and I loved it. Tax Act will bring up blank W-2 forms you to fill in yourself. Or, if you have a PDF copy of your W-2’s Tax Act will upload the information for you.
By using one of these programs you can simply walk through a set of questions and check the help files anytime you run into a problem.
Gather All Your Documents
When you sit down to file your taxes make sure you have everything in front you. Gather up all your tax documents, social security numbers for any dependents you’re claiming, and any other lists you’ve prepared. (If you have any expenses related to work or business make a list of those beforehand.)
Once you have everything together you can sit down and walk through the questions that the tax software will ask. If you’re in doubt of anything look through the help documents, call a tax professional, or make an appointment with an accountant to help you with your taxes.
Another thing I like to do is use an income tax calculator before I sit down to file my taxes. This way I’ll have a ballpark figure of what my income tax situation will be before filing.
Double Check Everything
Don’t hit submit quite yet. It’s extremely important that you take the time to double check all of your numbers.
Review social security numbers, income, expenses, and any other deductions you have taken. One small mistake could get your tax return rejected by the IRS or even audited.
If In Doubt…
If you sit down to file your own taxes and start to feel overwhelmed, just stop.
If you doubt your capabilities it’s better to get some help from a professional. If your tax situation is complicated then you may be better off having an accountant advise you on the best actions to take. However, if your return only includes a couple of W-2’s and not much more, you’ll find that preparing your income taxes yourself can actually be pretty simple.