How To Do Your Own Taxes Online

Irs Free File Is Now Closed

Check back January 2023 to prepare and file your federal taxes for free.

Welcome to IRS Free File, where you can electronically prepare and file your federal individual income tax return for free using tax preparation and filing software. Let IRS Free File do the hard work for you.

IRS Free File lets you prepare and file your federal income tax online using guided tax preparation, at an IRS partner site or Free File Fillable Forms. It’s safe, easy and no cost to you for a federal return.

To receive a free federal tax return, you must select an IRS Free File provider from the Browse All Offers page or from your Online Lookup Tool results. Once you click your desired IRS Free File provider, you will leave the IRS.gov website and land on the IRS Free File providers website. Then, you must create an account at the IRS Free File providers website accessed via IRS.gov to prepare and file your return. Please note that an account created at the same providers commercial tax preparation website does NOT work with IRS Free File: you MUST access the providers Free File site as instructed above.

I Was Tricked Into Paying To File My Taxes

Ill be frank with you I fell for it too.

During college, I was so stressed about getting back to studying that the only thing in my mind was How can I get my taxes done FAST?

I clicked on a link that said Free Tax Filing.

Then I started inputting all my personal information only to find out that I didnt qualify for free filing. Because I needed an extra form not included in the free version.

BOOM. Pay big $ to upgrade.

Over the course of a 7 year university degree, that cost can amount to over $1000 on online tax filing software, computed using equation . Even more than that if you are like me and interned in a different state ever year.

That means needing to file two state tax returns yearly! A fortune for a college student.

What a big disappointment after having arrived to a welcome page that screams FREE! like this one:

Heck, that money didnt even cover for someone else to do my taxes for me. I had to spend time inputting everything myself.

It was only until I stopped to question everything, that I started searching for another way.

Then I found this:

Lo and behold, I didnt have to throw away that money in the first place. As a low-income student, I could have gotten access to that same online software service for free.

So point is, to do your own taxes for free online, you need to first find the ultra-rare Free File link.

Next, Ill show you how to get to it.

How Do I Claim My Economic Impact Payment On My Tax Return

If you did not receive your third Economic Impact Payments , you could claim it on your 2021 tax return through the Recovery Rebate Credit. The credit will either increase your tax refund or reduce the amount you owe .

To determine your claim amount, refer to your Letter 6475, Your Third Economic Impact Payment, including the stimulus payments received. The notices went out by mail in early 2022.

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How Income Tax Works

Federal and Ontario income taxes are paid to the Canada Revenue Agency , which is part of the federal government.

Income tax is commonly taken off your pay by your employer, or off your pension, and sent directly to the CRA. You may also have to calculate the tax you owe and send a payment to the CRA.

Each year, you should file a tax return with the CRA to:

• report the income youve made
• ensure youve paid the correct amount of income tax
• access tax credits and benefits

Learn more about how much tax you should pay on each portion of your income.

Can I Import Tax Forms

Online tax software has streamlined the ability to prepare your tax return by having you input your unique tax information through intuitive question and answer prompts, on-screen guidance, access to a tax professional, and convenient e-filing with the IRS.

Tax software allows you to import your tax information directly onto your return without needing to handle physical forms or manually enter the data.

You can import tax forms like:

• W-2 from your employer
• 1099-B, 1099-DIV, 1099-OID, 1099-INT or 1099-R forms from brokerages where you invest or institutions where you bank
• 1099-NEC forms from companies you work for as a self-employed person
• 1099-MISC forms for non-employment related payments or income

TurboTax Tip: When selecting the financial institution for importing your tax forms, be sure to select the right company from the list. For example, several participating partners’ names may start with First National Bank. Select your specific bank to ensure your details can be found.

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Online Payment Plans Include:

• Short-term payment plan The payment period is 120 days or less and the total amount owed is less than $100,000 in combined tax, penalties and interest.
• Long-term payment plan The payment period is longer than 120 days, paid in monthly payments, and the amount owed is less than $50,000 in combined tax, penalties and interest.

If the IRS approves your long-term online payment plan , a setup fee may apply depending on your income.

If you already have a payment plan, you may also qualify to use the online payment plan option to revise your existing agreement. Changes you can make online include revising payment dates, payment amounts and banking information for Direct Debit Installment Agreements.

If you dont qualify for an online payment plan, you may also request an installment agreement by submitting Form 9465, Installment Agreement RequestPDF, with the IRS. If the IRS approves your IA, a setup fee may apply depending on your income. Refer to Tax Topic No. 202, Tax Payment Options.

Update Your Tax Software

Tax software must be certified by NETFILE every year.

Check the software list above to confirm that your software is certified for the year you need. If you are using uncertified software or an older version of the software, you may need to update or download a certified version from the developer.

Information on how to update your software is available on the developers website or from within the software itself.

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Ways To Get Your Taxes Done By Yourself

Tax professionals exist for a reason: Some peoples taxes are just too complex even for the best tax software programs.

But many of us can knock out this years taxes ourselves by:

• Filling out and mailing in a paper form .
• Using the IRSs free e-file fillable forms.
• Using an online or desktop tax program to prepare and file your return.

What Are The Benefits Of Filing Taxes Online

Using online tax software has several benefits. Not only does it simplify your tax return filing, you can file it more securely with e-File, enabling you to get your refund faster should the IRS owe you money.

• Fewer mistakes. When you file taxes online with tax software, you substantially reduce the likelihood of making errors as compared to preparing your returns on paper. The automated nature of tax software works to prevent simple arithmetic errors and also places information in the correct boxes and on the correct forms. This reduces the chances of filing an inaccurate return. Further, if you make a mistake on your return, such as claiming a dependent who has already been claimed, or entering an incorrect Social Security number, the IRS can detect it quickly. They’ll send back an error report in as little as a few hours so that you can quickly fix the problem.

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How Do I Get My Refund

The fastest way to get your tax refund is through filing an accurate return electronically using direct deposit to your bank account. When you file electronically, the IRS will provide a status of your tax refund within 24 hours of e-filing or within four weeks after youve mailed your return.

To check your status, you’ll need to provide your Social Security number or Individual Taxpayer Identification Number , filing status, and exact refund amount. You can gather this information from your completed tax return.

When you file, you can provide bank account details to have your tax refund securely direct deposited. You can also opt to have a paper check mailed to you.

Using An Online Tax Software Program

As a final option, you can use online tax software programs to file your own taxes. Although you may need to pay to use an online software program, it might be worth it if you have a complex tax situation.

Most tax software programs walk you through the filing process with prompts along the way. It can be helpful to see these prompts. You might see something that helps you notice easily forgettable details of your tax year.

A few good options include:

Cash App Taxes

Cash App Taxes offers free tax filing via a simple and easy-to-use interface. Taxes can be filed from your computer or phone.

TurboTax

You can use TurboTax to file your basic return for free. However, you may need to upgrade to a paid version if you have a complicated situation.

H& R Block

H& R Block is another well-known tax software program that can help you file basic returns for free. However, their paid options are very affordable if you need more help.

Simply choose the software that you are most comfortable working with. Doing your own taxes will be much easier if you pick a method that feels easy to you.

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Extension To File Your Tax Return

If you cant file your federal income tax return by the due date, you may be able to get a six-month extension from the Internal Revenue Service . This does not grant you more time to pay your taxes. To avoid possible penalties, estimate and pay the taxes you owe by the tax deadline of April 19, 2022, if you live in Maine or Massachusetts or April 18, 2022, for the rest of the country.

Can I Do My Own Taxes For Free If I Have Investments

One of my biggest concerns was whether I could do my own taxes for free if I have investments.

Absolutely, I found it easy to input my stocks, gains and losses, cryptocurrency, and more.

Whats even more awesome, is that you can even input your self-employed business income and expenses, for free, no extra charges. No need to upgrade to the most expensive edition of the software.

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Do You Need A License To Be A Tax Preparer

Most states do not regulate who can be a tax preparer.

In fact, only 4 states have laws that control who can prepare tax returns for a fee: California, Maryland, New York, and Oregon.

Which means that the person you are paying to do your taxes, might not know anymore than you do!

For those states that do have requirements, they include things like: completing a 60 to 80 hour tax law education course, and paying for a license permit.

Thats correct, it does not take a 5 year degree to be able to file your own taxes. You could master it in 2 weeks time. I spent various hours studying the form instructions and learning accounting. Now I dont depend on anyone to get it done.

Sometimes I forget how to fill out certain boxes when the new year comes around. But thats no problem, because I know where I can find answers I can trust.

I highly recommend everyone to diversify your skills, and get accounting and tax education. Theyre important to help you manage your personal finances effectively.

If I could, I would make it a course requirement for high school students so that no one jumps into a career without it.

Select The Right Tax Filing Software For You

Now that youve collected the right paperwork and determined your tax filing status, its time to start filing!

But first, you need to figure out the right tax filing software for you.

The top ways to file for your taxes include:

• Free File through the IRS
• Hiring a professional accountant or CPA

Now, dont get me wrong I trust myself and I know my financial picture by heart.

However, I still prefer to have some type of help when I start working through my tax picture just in case.

My top 2 tips for those who also are on the side of caution are:

• File your own taxes with an online tax software
• Hire a professional accountant or CPA

Heres when which situation is typically best for you:

If you are considering filing your own taxes using an online tax software program, then I suggest either of the following 2 options:

Also Check: Where Can I Find Tax Forms

Stay Organized Throughout The Year

Designate one place to keep all tax documents and add to it throughout the year. This could include a file folder, box or other compartment in a secure location. Add tax records receipts for charitable donations, bank interest statements, W-2s, 1099s, etc. as you get them. That way you wont have to dig around for lost documents or proof of expenditures when you want to file your taxes.

You should keep records for items of income, deduction or credit shown on your tax return until the period of limitations runs out. For many records that means three to seven years, but be sure to verify IRS recommendations before shredding any documents.

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Why Was The Free File Alliance Formed

In November of 2001, the Office of Management and Budget’s Quicksilver Task Force established 24 e-government initiatives that were a part of the President’s Management Agenda. These initiatives were designed to improve government to government, government to business and government to citizen electronic capabilities.

One initiative, IRS Free File, instructed the IRS to provide free and secure online tax return preparation and filing services to taxpayers. In accordance with this OMB directive, the IRS worked in partnership with the tax software industry to develop a solution. The result was the formation of the Free File Alliance, LLC.

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Keep An Eye On Your Deadlines

In closing, before you file with TaxSlayeror H& R Block, make sure you keep a close eye on those tax filing deadlines.

My tip is to get your taxes out of the way ASAP and then move on to other things on your financial checklist!

Lets take a quick look at those tax filing deadlines again:

How To Fill In A Self

When you submit your tax return online, you’ll just need to fill out the sections that apply to you. We explain the process in our guide to online tax returns.

For paper tax returns, you’ll need to work out which sections are relevant. Most people will just have to fill out the SA100 form. However, there are several supplementary pages that may apply to your circumstances. We explain more in our guide to paper tax returns.

Some employees, pensioners and self-employed people with a turnover of under £85,000 can be sent a simplified SA200 return. At four pages long, it’s much shorter. Unfortunately, you can’t opt to fill in this shorter form – HMRC will decide and send it out to you.

Details you may need to include on your tax return include:

Before you start filling out your tax return, it’s best to gather all of the information you’ll need.

Make sure you have records of:

Depending on your circumstances, you might need extra records, such as tenancy agreements.

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Which Filing Option Should I Choose To Do My Own Taxes

Each of these options is a completely acceptable way to file. There is no single option that is better than the other. The choice should come down to your personal preferences.

For example, if you are more comfortable working with pen and paper, then work by hand. But if you are comfortable with using your computer, then the online tax preparation software might be a better fit.

Either way, youll be able to file your taxes. Plus, youll determine whether you owe taxes to the government or if youll receive a tax refund. If you need to make a tax payment, then you can also mail your check to the IRS.

However, you can also complete this transaction with a credit card, debit card, or wire transfer. You can find details about these options in the IRS online payment system.