Preparing your own taxes allows for full control and cost savings. Preparation should start with obtaining necessary forms and schedules, using tax software, gathering tax documents, and checking for errors. Last year’s return is a helpful resource. Supplies needed include a calculator and pencils. Check the IRS website for tax news and changes.
While there are some conveniences to using a professional tax preparer or accountant, preparing your own taxes allows you to maintain full control over the process. You can work at your own pace and save money that you would have paid to a tax preparer. As such, many people choose to do their own taxes each year.
Doing your own taxes should start with preparation before you even sit down with your tax documents and receipts. First, make sure you have all the necessary forms and schedules. In the United States, you can request the forms and schedules you need from the Internal Revenue Service (IRS) by phone or online.
You may want to consider using tax preparation software to prepare your taxes on your home computer. If you use tax software, you won’t have to worry about securing the proper forms. Tax forms and schedules are usually included with the software. If necessary, you can even download updated forms over the Internet and import them into the program.
The next step, as you prepare to do your own taxes, is to make sure you have all the necessary tax documents on hand. Gather your 1099s, W-2s, dividend statements, and other tax-related documents, and check for errors. It’s a good idea to do this early, as waiting for the corrected documents can take some time. For certain documents, such as a W-2, you may be able to correct the information yourself and have the form provider correct your official record. However, it’s a good idea to check with the IRS before doing so.
Last year’s tax return is a good resource to have on hand as you prepare to do your own taxes. By taking a look at last year’s information and deductions, you can have a good idea of where to start in the current year. Taking a look at last year’s return can also help you determine if vital documents are missing. Basically, you can take note of what you wore last year and make sure you have it this year.
Once you’re sure your tax documents are in order, gather the supplies you need to prepare your taxes. Be sure to get a calculator and several sharp pencils, as well as a few pieces of paper. If you are using software to prepare your taxes, you may not need to do as many calculations. However, it is wise to keep such supplies on hand to check figures and add receipts quickly.
The last thing you should do as you prepare to do your own taxes is search the IRS website for tax news or changes. You can also use the site to find information on the correct way to handle certain tax situations, such as money paid for child care. Once you’ve brushed up on your tax knowledge a bit, you’re ready to sit down and prepare your taxes.
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