Some Tips On Doing Your Own Taxes

Doing Your Own Taxes may appear daunting, in a lot of cases however it is really not that difficult. In order to be successful with it though, you will need an accurate record of your expenses and incomes, and will also need to become familiar with the available tax codes. If you have questions for a tax professional on this topic just ask your question ateHow.com.

TurboTax

Instructions

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You should generally stay organize and keep a record of your incomes and expenses throughout the entire year. You will need a dedicated binder or file system to keep your tax related files/documents together.

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You should know the type of deductions you can make from your total income. You will need to itemize your deductions or take a standard deduction. Using some calculations or a tax software can help you to determine which is better for you. If your medical costs are low, and you are not paying a lot of mortgage interests or taxes on real estate, it may be better for you to take a standard deduction with your filings.

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You will also need to become familiar with the tax forms. A lot of households will generally file the Form 1040. You can provide the details of your incomes online or may fill them in on the W-2s tax forms. If you had earned over $400 in self-employed incomes through freelancing etc, you will need to fill the Schedule C and SE forms and will need to deduct any business related expense against your self-employed income.

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You should make use of some tax file and software online for accuracy and simplicity. You can make use of free software like TaxAct, TurboTax etc. Some banks (USAA etc) may provide some eFile services for free too.

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You may key in your deductions, income, personal information and tax credits into a tax software/application or you can fill them in on some paper tax forms. You will need to include your W2 forms with your paper forms, or you can fill in your information when you are filing or generally doing your own taxes.

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You can file your tax returns and then provide your bank details for direct withdrawal/deposit or could mail in your check. When you file your tax on the web, you should get an email acknowledgement, returns that you mailed will generally not get an acknowledgement however. If you get a refund or your payment is withdrawn from your specified bank account, you will then know that you have done what you should do right.

Doing Your Own Taxes photo
Photo by Internet Archive Book Images

Tips And Warnings

For taxes that are complicated and other issues you should contact an accountant.

You should also avoid getting any red flags with your tax filings (some tax software can alert you on this), in order to reduce the likelihood of your refund being audited by the IRS.

Tips on Doing Your Own Taxes

If you would like to do your own taxes, you will be happy to know that the process is actually simpler than most people think. Paying tax accountants to prepare your taxes may not be the best option especially if your finances aren’t complicated. To do your own taxes, you will need three things; accurate records of your annual income, some basic knowledge of the country’s tax code, and adequate time to work on your returns. The following is a step-to-step guide on doing your own taxes. If you have any outstanding questions, make sure to post your question here.

Income Tax Forms
Income Tax Forms (Photo credit: Manchester Library)

Tax Filing Tips
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Keep all your receipts for the year in an organized manner. Ideally, you should have a binder or a dedicated filing system for keeping all your tax-related documents. When it comes to doing your taxes, having everything neatly organized can be very helpful.

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Go over your expenses and decide whether to itemize or claim the standard deduction. You can do the calculations on your own and use the higher amount. You may want to consider taking the standard deduction if you do not have high medical costs, or if you don’t pay real estate taxes or a high mortgage interest rate.

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There are many tax forms, but the 1040 is the most popular. You will need to attach the W-2 form from your employer to show your annual income. If you have done some freelance work outside your regular working hours, you can declare it under business income if it exceeds $400.

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For accuracy and simplicity, consider filing online or using a tax software. For instance, you can use free software like TurboTax and TaxAct online. The USAA, as well as many other banks, offers eFile services free of charge. Therefore, you may want to check with your bank first to see if this service is offered.

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When filing your taxes, all you need to do is enter your personal details, annual income, tax credits and deductions into the appropriate tax forms or software. You can choose to send the W-2 form together with other forms, or enter the information in the corresponding boxes when eFiling. Tax forms usually have instructions to guide users on how to add and subtract different entries as required. Be sure to use a calculator for accuracy.

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After submitting your tax returns electronically or through mail, you will need to enter the details of your bank account for withdrawal or direct deposit. While you can simply write a check to the IRS, this is not a popular option. After filing, you will receive an email from the IRS confirming receipt of returns.

Warnings and Tips

If your finances are complicated, be sure to consult with tax accountants.

Be sure to watch out for red flags because they can make your tax returns more likely to be selected for auditing.

IRS Options For Avoiding The President’s Day Rush

The President’s Day is a holiday that forms part of the busiest times for IRS telephone lines. The wait can however be avoided as the IRS is equipped with easy options for taxpayers to find the answers they need. They can save time by visiting IRS.gov. Below are some of the most frequently asked questions by taxpayers about taxes 2014 and how answers can be quickly found.

Taxpayers always like to know the status of their refund. Most refunds are issued by the IRS in not more than 21 days. Status of a refund can be checked on the IRS.gov site or via the newly updated IRS2Go Smartphone app. to get the refund status; a taxpayer would need certain information from his or her tax return. The information is updated every day, so checking more often than that is not necessary.

Internal Revenue Service
Internal Revenue Service (Photo credit: LendingMemo)

Some individuals may have missed getting a Form W-2. Employers are supposed to send this form, which is a Statement of Earnings, to their employees by 31st January. If someone has not gotten it by mid-February, he or she should first contact the employer to ensure they have the correct address in their records. Once all options with an employer have been exhausted, one can contact the IRS and they will send the employer a letter. It is however advisable to call when the President’s week has ended to avoid the long phone waiting times.

A taxpayer may wonder if he or she can get a copy of their tax transcript or return. Such a copy can easily be ordered on the website, on the Smartphone app or by mailing a Form 4506-T to IRS. Others may wonder what happens if they cannot pay their Turbo Tax 2014 bill. If someone owes taxes but cannot pay, the Online Payment Agreement Tool can be used. The tool can help someone figure out if they are qualified for installment agreement with IRS in a few minutes. For those with more serious tax obligations, there is an Offer in Compromise Pre-Qualifier. It helps determine if someone qualifies for an IRS agreement in which his or her tax liability will be settled for an amount that is less than owed.

The Government Shutdown Will Delay The Start Of The January Tax Season

Delay The Start Of The January Tax Season

The government shutdown will have an effect on the tax season in 2014. There could be a one to two week delay on filling your 2013 tax return forms as a direct result of the government shut down in 2013.

The IRS lost sixteen days of work during the shutdown which came at a time when the IRS is typically very busy preparing for the upcoming rush of the tax season in January. Loosing nearly three weeks of work in the fall, is very difficult to make up before January.

Day 093/365 - Tax Time Phat Cash!
Day 093/365 – Tax Time Phat Cash! (Photo credit: Great Beyond)

They will not accept or process any returns, online or in paper, until January 28 to February 4th. This falls at least one week later than the typical yearly start of January 21. You can send in your paper 2013 tax return forms early but they will not look at them until opening day, and you can not file an online form at all until the date they open for the season.

The IRS is doing everything they can to make the delay shorter but the new bill has changed many forms and these changes take time.

You can still prepare your tax return from your end as you always have, as long as you have current software as there are many updates that come with the new bill. You can also prepare with an adviser in advance so you will be prepared on the first day the IRS will take the 2013 tax forms.

It should also be noted though, that the filing deadline for tax payer remains the same, April 15. So there is a shorter season all around.

Some Useful Tax Software Programs to File your Taxes Easily and Quickly

Some Useful Tax Software Programs to File your Taxes Easily and Quickly

If you want to file an income tax return and are wondering how to do your own taxes online then you can opt for e-tax filing which is a simple and easy way to file your taxes. With the convenience and comfort of your home, you can file IRS tax forms. Online tax preparation services bring ease and convenience to the people. Users do not need any prior experience of filing returns and they can complete income tax returns easily and quickly with the help of a tax software program.

Day 093/365 - Tax Time Phat Cash!
Day 093/365 – Tax Time Phat Cash! (Photo credit: Great Beyond)

Turbo Tax:
It is one of the most preferred e-tax filing software programs which is recommended for newbies, small business owners, heavy investors and multi-income filers. If you are a newbie and do not know how to do your taxes online then this software will be best suited for you. Here are some features of Turbo Tax software.

Clean and intuitive interface.
Logical flow of processes.
Easy to comprehend learning resources for the beginners.
Offers high-level of autonomy.
Audit risk meter
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H And R Block:
It is an elite piece of software to file your taxes online. It has logical workflows and that will simplify the process of tax filing. The software is recommended for heavy investors and newbies. Here are its features.

Section overviews containing useful information.
Several pages having embedded links.
Bookmarking system is well integrated.
In-person and round the clock support.
Latest print returns features.
Useful form finding tool.

TaxACT:
This e-filing software is recommended for college students, deal seekers and DIY filers. Following are some of the important features of TaxACT:

Import tax from the previous year feature.
Lowest price.
Stock assistance tools for entering stock information manually.
Best quality and comprehensive learning resources.
Mini-alerts.

TaxSlayer:
It is a well designed and one among the best e-filing tax software. Given below are its important features.

Life events guide.
Previous year comparison.
Gives you choice to handle processes on the major sections like income tax deductions.
Movement between sections for convenience of the users.

So, stop running from pillar to post when you need to file your taxes and stop wondering how to do your own taxes online as you can easily do it with the help of several user-friendly e-filing software. By using this software you can file your tax returns quickly and easily even if you are a newbie and filing your tax for the first time.

Filing Your Taxes At-Home – It’s Easier Than You Think

Filing Your Taxes At-Home – It’s Easier Than You Think

Most customers aren’t aware of just how easy it is to learn how to do your own taxes online. Whether you are employed and have received your tax information or are self employed and have tracked your income and business expenses, you can be easily guided through the entire process of completing your taxes with programs like Turbotax 2013 and be done in less than an hour.

information hydrant
information hydrant (Photo credit: Will Lion)

What kind of information are you going to need to start?

First, you’re going to fill in your identifying information including your name and address and determine whether you are filing for taxes on a single or joint application. Using the information from the income for the previous year, you are prompted to fill in the information through a series of questions. The answers to the questions are imported to the tax form, making it simple for anyone to do their taxes at-home, without having accounting experience.

It’s unlikely that errors are going to be made through the forms, as you’re prompted to answer questions and the system is designed to pick up common errors that are made. In most cases, the information must be correct or in the correct order to go forward with the income tax return.

Once the questions are completed, the report will be generated and you have the option to print the tax forms at-home or file the forms electronically.

Filing your taxes at-home is simple to do and can save you hundreds of dollars every single year.