Tax Day is here, and it’s the deadline for individuals and businesses to file their annual income tax returns with the government. Normally, Tax Day falls on April 15th, but if that date lands on a weekend or holiday, the deadline is usually pushed to the next business day.
For individuals, this is the final day to submit your federal tax return to the IRS for the previous year. If you owe taxes, it’s also the last chance to pay what you owe without incurring penalties or interest.
Feeling overwhelmed? Don’t worry! Here are five simple steps to guide you through the process:
Gather Your Documents
Before you dive into filing, take a few minutes to gather all the necessary forms and documents you’ll need, including:
- W-2: For income from your job.
- 1099 Forms: For freelance or contract work.
- 1098: For mortgage interest.
- Receipts for deductible expenses: Think charitable donations, medical expenses, etc.
- Form 1095-A: If you had health insurance through the marketplace.
- Other tax documents: Bank interest, dividends, and other sources of income.
Having all of this organized will save you time and stress when filing.
Choose Your Filing Method
There are different ways to file your taxes, so choose the one that works best for you:
- DIY with Tax Software: You can use online tax preparation software like TurboTax or H&R Block to file your taxes yourself. These platforms are user-friendly and guide you step-by-step.
- File with a Tax Professional: If your tax situation is more complex—like if you’re self-employed or have multiple income sources—it may be worth hiring a tax professional to help ensure everything is filed correctly.
- Free File Option: You might qualify for IRS Free File software, which lets you file your federal taxes for free.
Enter Your Information
Now it’s time to input your details. Whether you’re using tax software or working with a professional, you’ll need to provide personal information, income data, and any deductions or credits you’re eligible for.
Review and Double-Check
Before you submit your return, give everything a careful once-over. Check your personal details, income, deductions, and credits to ensure everything is correct. If you're using tax software, most programs have built-in error-checking features to help catch common mistakes.
File and Pay Taxes (If Applicable)
- E-file: Submitting your return electronically is fast and secure. You can file through your chosen software or your tax professional.
- Pay any taxes owed: If you owe taxes, make sure to pay by the filing deadline to avoid penalties and interest. You can pay via direct deposit, check, or online methods.
- Set up direct deposit: Expecting a refund? Opt for direct deposit to get your refund faster.
Common Mistakes to Avoid
While filing your taxes, it’s easy to make small mistakes that could cost you. Here are a few common ones to watch out for:
- Incorrect or Missing Social Security Number (SSN)
A small typo in your SSN can delay your return or cause it to be rejected. Double-check that your SSN is entered correctly, and make sure your dependents’ SSNs are accurate too. - Forgetting to Sign Your Return
This may sound obvious, but it’s a frequent mistake! Whether you’re filing online or by paper, always ensure you sign your return before submitting. If you’re filing jointly, both you and your spouse need to sign. - Incorrect Filing Status
Choosing the wrong filing status can affect your tax rate and the deductions you qualify for. Be sure you pick the status that applies to you. - Failing to Report All Income
You need to report all income you earned during the year, whether it’s from a full-time job, freelance work, or other sources like investments. The IRS receives copies of your W-2s and 1099s, so it’s important to report all income to avoid penalties. - Missing Tax Deductions or Credits
Tax deductions and credits can significantly reduce the amount of taxes you owe. Don’t miss out on common deductions like those for mortgage interest or charitable donations. If you’re eligible for credits like the Earned Income Tax Credit (EITC), make sure you claim them. - Not Keeping Track of Important Deadlines
Missing the filing deadline can result in penalties and interest on any taxes you owe.
Need More Help?
For additional resources or to find out more about free filing options, head over to the IRS website.