It’s that time of year again! It’s time to gather up your W-2s, 1099s, and receipts and get ready to file your taxes. The process can be daunting, but we’re here to help. This guide will walk you through everything you need to know about filing your federal income taxes step-by-step.
The first step is to determine if you need to file a return at all. If you’re single and under the age of 65, you only need to file a return if your income is above $12,400. If you’re married and filing jointly, you need to file a return if your combined income is over $24,800. There are other factors that can affect whether or not you need to file a return, so be sure to check the IRS website for the most up-to-date information.
Once you’ve determined that you do need to file a return, it’s time to gather up your documents. You’ll need your W-2 from your employer as well as any 1099 forms you may have received for side hustles or freelance work. If you donated to any charities last year, be sure to save those receipts so you can take advantage of the tax deduction. Once you have all of your paperwork in order, it’s time to start filling out your return.
The first section of the return is where you’ll enter your personal information—name, address, Social Security number, etc. The next section is where you’ll enter information about your income. This is where you’ll use your W-2 and 1099 forms. Be sure to double-check that the numbers on your forms match the numbers on your return; mistakes in this section can delay the processing of your return or even result in an audit.
The next section is where you’ll calculate any deductions or tax credits you may be eligible for. This is where those charitable donation receipts will come in handy. There are many different deductions and credits available, so be sure to do some research and see if any of them apply to you. The IRS website has a great tool that can help you determine which deductions and credits you’re eligible for based on your individual circumstances.
After calculating your deductions and credits, it’s time to figure out how much money you owe (or how much of a refund you’re getting). To do this, simply subtract the total amount of deductions and credits from your total income. The resulting number is either the amount of money you owe or the amount of money the government owes you!
If everything looks good and there are no mistakes, then congratulations! You’ve just filed your taxes! All that’s left now is to sit back and wait for that refund check (or direct deposit) to hit your bank account.
Filing taxes doesn’t have to be difficult or confusing—just follow these simple steps and you’ll be done before you know it!