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Several financial software companies have e-filing programs allowing you to file your individual tax income return without wasting time or paper. Do not shy away from these programs if your tax return is fairly simple, meaning you have few deductions and expenses to file or only one job to declare. Even if you have complicated returns, these programs can allow you to file at home if you are organized and prepared. Follow a simple process to file your own taxes.
Step #1: Prepare Your Tax Documents
You will receive your tax documents from your employers. This may be a W2, W4, 1099 or other form depending on your employer. These should come within the first three months of the year. if you have not received these documents by March 15, ask your employer about their status. Confirm the accuracy of these statements against your bank accounts and verify your personal information before proceeding. Consider making copies in case these documents are misplaced.
Step #2: Prepare Your Receipts
Keep your receipts for both business purchases and charitable donations during the course of the year. Gather these prior to sitting down for your return. There is a standard deduction for each income level, and you will only want to deduct your donations if they are greater than this. The software will advise you of the exact amount of the deduction in a given year. Again, make copies of these receipts and keep them in a file at least twenty feet away from the originals, preferably in a fire safe box.
Step #3: File Your Federal Return
There are a number of different software programs to choose from. Highly rated programs include H&R Block's e-file, the Federal e-File offered by the government, and Turbo Tax. Each of these will start you with a federal return. There is a step by step guide to take you through income and deduction declarations.
Step #4: File Your State Return
Your state return will typically come after your federal filing. You will use your I-9 to file with the state you are a resident of. If you have lived in multiple states during one year, you will need to file a return in both states. Again, the software will ask you these questions to guide you to a correct return.
Step #5: Monitor Your Return Status
Once you have submitted your Federal and State tax returns, they will need to be accepted by both revenue services. This process can take a few days to a few weeks. You should be able to check the status of your return through the software you used. You will also receive email updates notifying you when the return has been accepted in most cases.
Step #6: Elect Payment Method
You will either owe money or receive a return depending on how much you withheld during the year. In either case, you will need to elect a payment method. Most softwares give you the option of entering your bank account information for direct deposit or withdrawal. Otherwise, you can elect to pay by or receive a check in the mail.
