Types Of Tax Credits And Benefits
There are two types of tax credits:
Benefits can help with various living expenses, such as raising children, housing, loss of income and medical expenses.
Read the Canada Revenue Agencys General Income Tax and Benefit Guide and Forms Book to learn more about which tax credits you can claim.
With the Ontario Child Care Tax Credit, you could get back up to 75% of your eligible child care expenses. It applies to eligible child care options, including care in centres, homes and camps.
The Low-Income Workers Tax Credit provides up to $850 each year in Ontario personal income tax relief to low-income workers, including those earning minimum wage.
How And When To File Your Tax Return
Learn how to fill out your return using tax preparation software or on paper.
The deadline for filing personal income tax returns and paying outstanding income tax is . After April 30, penalties and interest start to apply to any outstanding balance owed.
If you are self-employed or filing for someone who has passed away, please see the CRAs website for filing deadlines.
File Early And Sign Up For Direct Deposit
If you think you may be getting a tax refund for 2021, theres more of an incentive to prepare your taxes and e-file early. The sooner you file, the sooner youll get your refund, and you know what this means more money in the bank. If you want your cash as fast as possible,make sure you choose direct deposit. Its the safest and easiest way to get your funds.
The IRS states that choosing to receive your tax refund through direct deposit gets you your refund in 21 days or less, while a check can take up to 2 months to arrive at your door. TheIRS pays out refundsbased on a schedule that actually prioritizes e-filed returns and direct deposit refunds. To be a part of that group, sign up with the IRS for a direct deposit payment straight into your bank account. You can do this when you file your tax return electronically.
Filing your taxes online is instant, unlike mailing in a paper tax return, which takes time to reach the IRS. After you file your taxes online, youll get a notification from the IRS saying that it was successfully received or that an error occurred. Again, if youre owed a tax refund, you will receive your money through direct deposit or a paper check. Remember, direct deposit is quicker and eliminates the risk of your money getting lost in the mail.
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File Your Own Taxes With Ease
These types of returns are the ones that you can file at our EZOnlineTaxes.com website for one low flat fee of $25. And that includes your federal and state return with free e-filing. As a matter of fact, we go even further with this amazing pricing. You can file any type of personal tax return, no matter how complicated, for that same low price.
Were very pleased to report that EZOnlineTaxes.com is powered by one of the leading tax preparation software developers in the USA, 1040.com. This program was designed with the do it yourself tax preparer in mind, and shows you how to file your taxes by yourself.
Theres no need for you to research various tax topics to find out how you should handle a certain item. With EZOnlineTaxes.com, thats a thing of the past. We ask you the right questions based on your filing status, and the rest is pretty much automatic. Enter your tax data in IRS look alike forms, and sit back. We show you why filing your own taxes online is a no-brainer.
Were proud to say that our client base includes young teenagers who file taxes for the first time all the way up to those in retirement looking for a low cost way to file your own taxes.
Gather Your Tax Documents
In order to do your taxes, you need to collect all of your tax documents. Think of it as a scavenger hunt, if that makes it a little more fun! What forms will you need? Here are a few to keep in mind:
- W-2s
- Investment income statements
- Charitable contribution statements
And if this is your first season filing taxes as a married couple, congrats! There are several tax tips newlyweds should know. But getting hitched isnt the only major life change that might require some additional paperwork. To keep your tax prep running smoothly, here are a few more documents you may need to add to your list:
- Form 8822
- SS-5
- W-4
Income and investment interest forms should be mailed or sent electronically to you by January 31, so keep an eye out for those documents. You can find and download many of these documents early through your bank, mortgage provider or payroll company. If you havent received your tax statements or cant find them online by the first or second week of February, call the necessary people to be sure you receive your paperwork in plenty of time to get your taxes done.
Afraid of forgetting a document youll need around Tax Day? To help you get all your ducks in a row, download our free tax preparation checklist.
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Choose Standard Or Itemized Deductions
When you file your taxes, you can choose to claim the standard deduction or itemize your deductions. Claiming the standard deduction is easier, and as a result of the 2017 tax reform, it is often higher in value than many filers total itemized deductios.
If, however, you had large, out-of-pocket medical and dental expenses, paid mortgage interest on your home, had large uninsured losses, or made large contributions to qualified charities, it may be worthwhile to itemize your deductions and determine whether they amount to more than the standard deduction you qualify for.
Good tax software like TaxAct prompts you to enter all your information and does the calculations for you. The software tells you whether itemizing your deductions or claiming the standard deduction will save you the most money, taking the guesswork out of this process.
Filing Your Own Taxes Online With Ezonlinetaxescom
Weve been offering online tax filing for do it yourself individuals for almost thirty years. Each year, we design ways to make our software program as easy as possible to make it fast and very easy so anyone can file their taxes online. Also, we changed our pricing several years ago to make it very transparent by charging a flat fee of $25.
As an example consider this scenario: You file a joint return with dependents, itemize deductions, have 5 rental properties to report, and have a small business. I looked at one of many online providers and the fee was $89.99 for the federal return, $29.99 for the state return, and then $19.99 for e-filing, or a total of $139.97. WOW, you can file that same return with us and the total cost is $25!
If you want to know how to file your taxes by yourself, EZOnlineTaxes.com is your best choice.
When you login to our program and setup the basis name, address stuff, youll be presented with a series of simple interview questions geared to your specific tax situation. Based on your answers to the questions, you add-in your tax information on IRS look-alike forms. From there, its automatic.
Our amazing program completes all of the forms and schedules that you need for your return. You review all of the forms to be sure you didnt forget anything, and youre ready to file. No need to worry if you got the child tax credit or any other credit that you qualify for either. Its all done automatically.
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Where Can You Get Help Filing Your Taxes
Some taxpayers are entitled to free assistance in preparing and submitting their tax returns. People with low income, who are disabled, or who have difficulty with English can obtain free assistance through the Volunteer Income Tax Assistance program while seniors can get help through the Tax Counseling for the Elderly program.
Many of these sites were closed in 2020 due to COVID-19. It is unclear if they will remain closed in tax season 2021.
First: Do You Need To File Taxes
Before diving into this guide, make sure you actually need to file taxes. Anyone who is 18 or over and makes more than a certain amount according to their filing status must file taxes.
For singles or independents, you must file if you make more than $12,200 per year. Those married filing jointly only have to file if making more than $24,400 per year.
Dependents, meaning those who rely on a parent or guardian for most of their support, have different requirements. They must file if they make more than $1,100 in a year from investments or dividends of more than $6,350 from a job.
If youâre filing as head of household, youâre over 65, or youâre a widow or widower, there may be other requirements for filing. The IRS has a handy tool that helps you determine if you need to file your taxes, so if youâre still uncertain, use this resource.
Please note that if you made less than the qualifying amount, but you had taxes deducted from your checks automatically, youâll want to file a return to get back what you didnât owe.
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Get Free Help If You Need It
When you do your own taxes online, your free tax-prep software should have a help center and customer support if you have any questions. If you still need assistance, numerous free resources are available to help you complete your taxes. Here are a few.
Individual IRS telephone helpline: 1-800-829-1040
What Does Filing Taxes Entail
Filing your income taxes is essentially an exercise in your administrative skills. It involves gathering the appropriate tax documents, relaying that information to a tax preparer , and then submitting your income tax return to the Canada Revenue Agency .
You can submit either online or through the mail. Once the CRA reviews your return, you’ll receive a notice of assessment . This document is packed with important information, including whether you owe the government money or can expect to get a refund back. Your NOA will also tell you your tax-advantaged account contribution limits think and tax-free savings accounts for the tax year.
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Choose Between Standard And Itemized Deductions
Deductions are super important to think about since they can lower your taxable income, potentially giving you a bigger refund or a lower tax bill. As you file your taxes, youll have two options: You can take the standard deduction or itemize your deductions. Below are the forms you will have to complete with your online tax filing.
- Form 1040: If you have a 9-to-5 job and will be receiving a W-2, you may be able to takethe standard deduction. For 2021, the standard deduction for individuals is $12,550 and $25,100 for married people filing jointly. If you use this standard deduction, you cant itemize deductions as well. Instead, youll take the standard deduction and fill out aForm 1040and submit it with your tax return.
- Form 1040 with schedules:If youve had a big life change , this may bump you into a different financial situation where youll need to take itemized deductions instead of the standard deduction. If this is the case, you may need to fill out one or more of the new schedules in addition to the Form 1040. For example, if you have capital gains, unemployment compensation, gambling winnings, or any deductions to claim , you may want to fill out Schedule 1.
- Home mortgage interest
- Home office and other associated deductions
- Educator expenses
- Child care expenses
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Voxs German Lopez is here to guide you through the Biden administrations burst of policymaking. .
The timing is auspicious for such an endeavor. As you may know, if you make $72,000 or less, youre eligible for a free return through the IRS Free File program, including software provided by Intuit, the company that operates TurboTax. If you make more, youre eligible for Free File Fillable Forms, an Intuit product.
That system is now falling apart. Intuit is pulling out of its arrangement with the US government, which could mean the end of the only online tax filing systems available free of charge to all Americans.
But this collapse may present an opportunity.
For decades, the tax prep industry has succeeded in preventing the IRS from doing what the tax authority in just about every other country does: providing a free, effective, easy-to-use online service where all taxpayers can file their taxes. But its doing so just as the Biden administration is attempting to pour billions in new funding into the IRS.
The end of Free File and the conversations in Congress around IRS funding could make this the perfect moment to dismantle our broken tax filing system and build something better.
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Consider A Free Online Tax
When doing your own taxes, you could do it by hand and mail in your return, or you could choose to e-file. For speed, accuracy and convenience, its hard to beat e-filing. Plus if you pair e-filing with direct deposit, youll probably get your refund faster than filing paper forms by mail.
Plenty of software providers and online services provide e-filing. Some may advertise free filing, but often theres a catch. Some allow you to file your federal return for free but then charge you for the state return. Some allow you to file for free if you take the standard deduction but charge you if you want to itemize. And some may even charge you if you have income reported on forms other than W-2s.
There can be many caveats to free filing software, so its important to understand what fees you might end up paying.
Remember, is entirely free. You can file both your federal and single-state tax returns without income restrictions. You can work for an organization or for yourself or both. You can itemize or take the standard deduction. With Credit Karma Tax®, these differences dont trigger a fee of any kind.
Free File: About The Free File Alliance
The Free File Alliance is a group of industry-leading private-sector tax preparation companies that provide free online tax preparation and electronic filing only through the IRS.gov website. IRS Free File is a Public-Private Partnership between the IRS and the Free File Alliance. This PPP requires joint responsibility and collaboration between the federal government and private industry to be successful.
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How To File Your Own Taxes Online In 6 Easy Steps
Filing your taxes can be a drag, and knowing what to do is only half the battle. Learn more about how to file your own taxes online and how to get prepared to receive your refund faster.
Robyn ParetsJanuary 7, 2022
Its a new year. Time to get in shape, eat healthy, start a new side hustle, and prepare your taxes. Really? Really.
While the deadline to file 2021 taxes isnt until April 15, 2022, now is a great time to get organized and make some important decisions. This way, there will be no headaches, and you wont be scrambling to get your taxes filed online at the last minute.
Take a look at these 6 steps to filing your taxes online, and start the new year with a sense of accomplishment!
In This Article
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Do You Even Have To File Taxes
Whether you have to file a tax return this year depends on your income, tax filing status, age and other factors. It also depends on whether someone else can claim you as a tax dependent.
Even if you dont have to file taxes, you might want to do it anyway: You might qualify for a tax break that could generate a refund. So give tax filing some serious consideration if:
-
You qualify for certain tax credits.
About Free File Fillable Forms
Free File Fillable Forms are electronic federal tax forms you can fill out and file online for free, enabling you to:
- Choose the income tax form you need
- Enter your tax information online
- Electronically sign and file your return
- Print your return for recordkeeping
If you choose Free File Fillable Forms as your Free File option, you should be comfortable doing your own taxes. Limitations with Free File Fillable Forms include:
- It won’t give you guidance about which forms to use or help with your tax situation
- It only performs basic calculations and doesn’t provide extensive error checking
- It will only file your federal return for the current tax year
- No state tax return option is available
- You can’t make changes once your return is accepted
Free File Fillable Forms is the only IRS Free File option available for taxpayers whose 2021 income is greater than $73,000. Taxpayers whose income is $73,000 or less qualify for IRS Free File partner offers, which can guide you through the preparation and filing of your tax return, and may include state tax filing.
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