Need to file your taxes? Take a look at “Taxes 101: A Helpful Guide for Filing Taxes” to better understand the tools and steps you need to file your taxes.
Your Federal tax filing deadline may have moved from April 15th to July 15th of this year, but do you know when your state taxes are due? Some states have pushed their filing deadline back while others haven’t.
Taxes can be confusing enough during a typical year, but this year they are even more confusing. You need to keep track of your deadlines and other requirements to ensure you avoid excess fees or penalties.
Follow this filing taxes 101 guide to ensure you know how to file your taxes this year and comply with the regulations.
Do You Even Need to File
If you’re doing taxes for the first time, you may question whether or not you even need to file your taxes. The answer is probably yes. Even if you aren’t required to pay, it can be worth your while if you qualify for a credit or tax break that results in a refund.
Consider filing your taxes if you answer yes to any of these questions.
• Was income tax withheld from your paycheck?
• Did you make estimated tax payments?
• Was your refund last year applied to your estimated tax this year?
• Do you qualify for an education credit or some other tax credit?
Decide If You’re Going to DIY or Hire a Pro
Before you get started, you need to decide if you want to tackle doing them yourself or hire a professional to prepare your filing for you. Hiring a professional is a good idea if you have a business, don’t understand the forms or the basics of taxes, or are looking for strategic planning advice.
You can probably use tax software and prepare them yourself if all of your income came from your employer, you understand the software’s process, and your financial situation is relatively simple. You can use a service like Mighty Taxes to help you choose the right tax prep software.
Start Your Preparation Early
Don’t get lulled into a false sense of security by having an extended deadline. According to tax law basics, you’ll have to pay interest on the outstanding balance of your tax bill. You can also get hit with a late payment penalty that increases each month that you’re late.
Have the Right Forms and Information
Do you know what information you need to be able to file your taxes? Make sure you have this information so that you can sit down and prepare your taxes uninterrupted.
• Social security numbers for you, your spouse, and your dependents
• Date of birth for you, your spouse, and dependents
• Income statement forms: W-2, W-2G, 1099-R, or any other income form
• Forms for interest or dividend income forms
• Your tax return for last year
• Your bank account information
• Form 1098 with your mortgage information
• Receipts from donations
Taxes 101: Tax Basics for Beginners
By keeping these tips in mind, you’ll be sure to file your taxes this year successfully. This taxes 101 guide will ensure that you submit all of your forms correctly and in a timely manner.
Check out our other finance articles for more financial and tax tips.
