(Trends Wide Español) – If you pay someone to prepare your taxes, save yourself the expense and do it yourself with free tools from the Internal Revenue Service (IRS). Also, if you do it online, you will avoid delays in refunds.
The IRS began receiving tax returns on January 24 and taxpayers have until April 18, 2022 to file them. Keep in mind that if you live in Maine or Massachusetts the deadline to do so is one day later, on April 19.
First of all, to file your tax return you need to know how much money you earned during the year for which you are going to declare. Once you know this amount, you’ll need to decide whether to take the standard deduction or whether to itemize, according to the IRS.
Once you have resolved these questions, we will tell you step by step how to declare your taxes and thus avoid errors in the process.
1. Gather the necessary documents
According to the case:
- If you are a full-time employee, your employers should have sent you the W-2 form before January 31. This shows the salary you earned during the year, as well as the taxes that were withheld.
- If you are self-employed or contracted, you may receive Form 1099-NEC with details about what you earned. You may also receive documents showing dividends or interest earned on investments (Forms 1099-DIV or 1099-INT, for example).
- If you’re a college student, you’ll receive a 1098-T form that shows how much you paid in tuition, as well as any amounts you received from grants or scholarships, to help you calculate deductions and credits related to educational expenses.
- Receipts for charitable donations, medical and business expenses, if you itemize
Here you can consult more types of forms to know which one applies in your case.
2. Determine your marital status
Your filing status is used to determine your filing requirements, standard deduction, eligibility for certain credits and your correct tax, explains the IRS.
You will then need information about your marital status, which is determined depending on whether or not you are married under United States law. If applicable, the year of death of the spouse is also required. The percentage you pay of household expenses also affects which option you must choose on your return, according to the tax agency.
3. Decide how you want to file your tax return
The IRS recommends using tax preparation software to make filing online more accurately and easier.
- If your Adjusted Gross Income is US$73,000 or less, you have the option to do so for free and on your own through Free File, a tool that allows you to prepare and file your federal income tax return online at IRS partner website or using Free File Interactive Forms. The software often includes step-by-step instructions and help for taxpayers.
- You can use an electronic file provider authorized by the IRS online filing program, who are qualified to prepare, transmit and process returns online. To locate these authorized providers, you can consult the database provided by the US tax agency here.
- Paper tax return sent by regular mail.
- See if you qualify for free tax return preparation. The IRS offers free tax help to low-income people, members of the Armed Forces and their families, people with disabilities, the elderly, or taxpayers with limited English proficiency.
4. Determine which type of declaration is more suitable for you
You can review here the keys to the tax reform to determine if it is convenient for you to file a standard deduction or an itemized return.
5. If you owe money to the IRS, you will have to pay your taxes
You can pay taxes online through the IRS website. Full or partial payments are accepted, as well as installment plans. According to the tax agency, penalties and interest will continue to accrue until you pay the full balance.
6. File your tax return by April 18, 2022, (April 19, 2022, if you live in Maine or Massachusetts)
Whether you file your taxes using the online tools explained above or by mail. The IRS recommends filing online and receiving any refund this year through direct deposit to avoid delays.
