Your Guide on How to File For Taxes

close up of form 1040

Tax season is not a fun time for anyone. Many people worry about owing too much in taxes or not being able to get the refund they expect.

But it doesn't have to be stressful. All you need is this quick guide for how to file for taxes to get you off to a great start.

Are you ready? Let's begin.

What Documents Do You Need?

If you're new to filing a tax return, you might feel overwhelmed with all the paperwork you have to fill out. But before you stress about filing your taxes, you should gather all of the paperwork.

W2

If you're employed part-time or full-time, your employer will provide you with this form. The W-2 will show how much money you made the entire year and how much taxes you paid.

1099

You've probably heard the term side gig. If you worked a side gig and earned at least $600, you will receive a 1099 form.

Miscellaneous

If you received income or your side gig paid less than $600 you won't receive a form, but you're still obligated to report your income.

1098

You will get a 1098 form if you're paying interests on any student loans you might have.

1099-INT

Those with an active savings account will receive a 1099-INT form that will report any interest they've made in the previous year. Your bank will send you this form if you're eligible for one.

1095-A

If your health insurance health provider is Healthcare.gov, you can expect to receive a 1095-A. You will need this form to show proof of health insurance.

Other Expenses

If you had any work-related expenses during the year, you will need to show proof if you want to claim any deductions.

Are You Eligible for Deductions and Credits?

Unless you're a tax expert, you might not know all the credits available to you.

Find out if you're eligible for any of the following tax credits:

  • American Opportunity Tax Credit
  • Charitable Donation Deduction
  • Earned Income Tax Credit
  • Home Office Deduction
  • Lifetime Learning Credit
  • Student Loan Interest Deduction
  • Tuition Fee Deduction

There might be other credits available to you.

File Your Taxes

You have many options when it comes down to filing your taxes.

Online or Tax Software

If you think you're tax savvy or your tax return is not too complicated, you can do it yourself using online tax software.

This option is inexpensive and easy to use. You will be walked through every step and asked a series of questions for a maximum return.

In-Person Tax Professional

Some people fear they'll make a mistake with their taxes. If this is you, why not go to a tax professional.

A tax professional will be able to handle more complex taxes to give you the maximum refund.

How to File for Taxes: The Bottom Line

We know filing taxes is a stressful time, but it doesn't have to be. As long as you gather all of your documents, figure out what credits you're eligible for and decide where to file your taxes you will be off to a great start.

If you enjoyed these tips and would like to learn more about how to file for taxes and would like to learn more, check out our blog.

 

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