You might dread tax season, a lot of people do, but the reason why most Americans dread filing taxes is because they don’t know what to do! And that’s perfectly fine since filing your taxes isn’t something that’s taught in school. The other thing is that you might not even need to hire a professional to help you with your taxes. You can easily file online with different software’s if you know exactly what you need to do.
Here are 5 tips you can follow to file your taxes online.
1. File For Free With The IRS
The IRS has come up with an easy online service that lets you file your taxes for free online. Go to the link here to sign up and get started right away. https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free
This is one of the safest and most reliable ways to file your taxes. To get an even faster tax return, be sure to set up your direct deposit when you file.
2. Get All The Info You Need
Before starting your tax return, make sure that you have all the information that you will need. You’ll want to make sure that you have your W-2 or any 1099 forms for the past year. Your W-2 states your earnings for the year along with any income taxes you have already paid and 1099 forms document if any other person/company outside of your employer paid you any earnings. You’ll also need to know your social security number (and your spouse’s or possible dependents), property taxes, retirement account contributions, donations to charities, education or business expenses, and a record of last year’s tax return (if this isn’t your first time).
3. Maximize Your Tax Deductions
The most important thing for you to know when filing your taxes online is to understand how to maximize your tax deductions and don’t be afraid to submit any possible deduction. You can be saving money in places you never realized before! In general, it’s smart to keep track and stay organized by keeping receipts and logging your expenses throughout the year, so that you can file with ease later on. The following list are some examples of what you can claim as tax deductible, but remember, not every deduction will count towards the amount of income tax you owe or the size of your tax refund.
- Medical Expenses
- State and Local Tax Deductions
- Property Taxes
- Charitable Donations
- Mortgage Interest Rates
- Education Expenses
- 401(k) Contributions
- Health Savings Account Contributions
- Self-Employment Expenses
- Business Expenses
4. Easily Request Extensions If You Need
The deadline to file your taxes every year is April 18, however, it may be the case that you don’t have enough time to file your taxes. You can easily request an extension to file your taxes online, so you don’t get hit with the penalties for submitting your taxes late. It’s important to keep in mind that an extension doesn’t give you more time to pay the taxes you already owe, it only gives you more time to file your taxes.
5. Watch Out For Identity Theft
One downside of filing your taxes online is the possibility of identity theft. Anytime you’re inputting sensitive information like your social security number online, you’re risking the chance of having your identity stolen. Filing through the IRS online service will be your safest bet, as they have implemented a great deal into creating safe servers to protect your information. Anytime you use third party companies to file your taxes, there’s a possibility of security breaches that can leak your sensitive information. If you submit your tax return and the IRS rejects it because they already have a record of your tax return in their system, this means that a scammer has likely stolen your identity to reap your tax benefits. In this case, you’ll have to submit your taxes via paper and report it to the Federal Trade Commission. Also be sure to check your bank accounts and credit cards for potential suspicious activity.
The most important thing to remember is to take time to learn about the tax system. It may seem complicated but the more you know, the easier it is. Filing your taxes online can be a simple and hassle free option to get the most out of your tax return.
1. https://www.irs.gov/newsroom/use-irs-free-file-to-file-taxes-for-free 2. https://turbotax.intuit.com/tax-tips/tax-refund/5-hidden-ways-to-boost-your-tax-refund/L0AZGnJuS 3. https://www.nerdwallet.com/blog/loans/student-loans/expert-advice-students-filing-taxes/ 4. https://www.nerdwallet.com/blog/taxes/tax-deductions-tax-breaks/