How to do Taxes Online Yourself
6 Tips for You to Learn How to Do Taxes Online Yourself
I can tell you from personal experience, that learning how to do taxes online is not at all difficult, unless you have a tax return that is very complex. The average taxpayer that is buying a home, perhaps is married and has one or more children, and is employed and paid with W-2 wages, is the perfect candidate for online tax filing.
If you were to take that type of tax return to a local CPA, you can expect to pay $250.00 and UP, and there is no need to do that. Even those tax returns that have a Schedule C business schedule, or even a Schedule E rental property, can easily file taxes online.
You don’t need to be an accountant or a tax specialist either. Anyone can learn how to do taxes online very quickly. Simply gather all of the forms that were mailed to you, and be sure that you maintained good records for the business and rental property, if applicable, including saving the receipts, and familiarize yourself with them.
Several years ago, when most tax returns were completed by hand, it was a lot more difficult, but today, the online tax filing software is so intuitive, it practically does it all for you automatically. The best part is when your return is completed and reviewed, and the program tells you to click the e-file button. Just as soon as you do, the returns are filed with the IRS and your resident state. Sure beats the old snail mail. There are six tips that we can offer you so that you can learn how to do taxes online yourself and save a lot of your hard earned money. If you follow them, you will see for yourself just how easy it really is.
- First, set up a folder to keep your receipts in for the year. If you have a side business that will require a Schedule C, keep a ledger book to record all income and cash and check expenditures. When tax time rolls around, it will be very easy for you. Anything tax related should go in this folder.
- Assuming that you won’t be having a business or rental schedule, keep all medical receipts, real estate tax bills, charitable contributions, etc. If you are buying a home, and have a mortgage, there’s a good chance you will be itemizing deductions rather than taking the standard deduction. If you do your taxes online, the tax program will ask you a few interview questions, and based on your answers, will get the required forms ready for you.
- Before going online to file your taxes, you should gather all of the forms such as W-2, bank interest forms, bank forms for mortgage interest paid, and other statements issued by your church or other charities for total contributions made during the year. Keep the Goodwill type forms as well with a realistic value on them.
- To enter the information from your W-2, etc., you will find forms on your computer screen similar to yours, and just type it all in. Fill in the various forms presented to you such as dependents, if any, spouse information if married, etc. Many online tax programs offer you a Free federal return if your return is simple and can be filed on a Form 1040EZ. With our program, you don’t have to know if you qualify. After you enter your information, the software does a calculation and will prepare your return for the lowest price automatically.
- Finish entering your information and let the program calculate your return for your review. It also checks your return for accuracy, and for every deduction and tax credit that you may be eligible for, and does that for you as well. This is fast…easy…100% guaranteed accurate!
- After your review, you have the option to have your small fee deducted from your refund so that you won’t need a credit card. You can also choose to have you refund(s) directly deposited to your bank account which means that you can expect them in as little as 10 days. If by chance, you have a balance due, you can elect to have the IRS debit your bank account, or you can pay online. You can even choose to mail in a check. After your return is filed, you will receive an acknowledgment in a couple of days.
We hope these 6 tips have convinced you how easy it is to learn how to do taxes online, and how low the filing cost can be. At our website, we go even further. If your return requires more than one state return, we file as many as you need at no extra charge. You only pay for the one state. We encourage you to do taxes online with us and experience a pleasant tax season.