If you are planning to file your own taxes, you must know all of the available credits and deductions. The best way to make sure you pay the least amount of taxes is to maximize your tax savings by properly calculating and deducting all of your expenses. Some common credits and deductions include higher education credits and charitable contributions. Knowing how to file your own taxes is easier said than done, but the tips below will help you get started.
You may feel overwhelmed by the thought of filing your own taxes, but it’s actually much simpler than it once was. Nowadays, you can find numerous software programs, internet resources, and even mobile apps for tax preparation. This relatively simple process is enticing to more people. In fact, in 2014, 27 million taxpayers computer-filed their returns from home. That same year, the number of returns that were e-filed by tax professionals declined 2.2 percent. Here are five of the advantages of filing your taxes yourself:
The best way to file your own taxes is to gather all of your paperwork, such as receipts, bills, and other relevant documents. You should then determine your filing status. There are three ways to file your taxes, but you must choose the one that suits your situation best. The first method involves downloading the IRS forms and filling them out by hand. Once you have completed the forms, you can then mail them to the IRS.