How to Do Your Own Taxes

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By WriterGig
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Do your own taxes.

Learning how to do your own taxes is a simple process, and quite often, more painless than you'd think. I do my own taxes every year, even though self-employment complicates things, and I'm not an accountant type by nature. While I used to file paper returns, e-filing using tax prep software is even easier and makes personal tax returns a breeze. Here's how to do your own taxes.

Difficulty: Moderate

Instructions

Do Your Own Taxes

Step 1

Save receipts, keep excellent records and stay organized throughout the year. Have a dedicated file system or binder for tax-related documents. Having everything neatly in one place will be crucial for your success at tax time.
Step 2

Learn what you can deduct from your income and whether it's better to itemize or take the standard deduction. You can run the calculation yourself, or allow your tax software to figure it out. If you don't pay much in mortgage or student loan interest and don't have high medical costs, you'll usually be better off taking the standard deduction.
Step 3

Get familiar with tax forms. Most households file a form 1040. You'll attach your W-2s to show income (or enter the information online). If you have extra self-employed income (such as through freelance work or services) over $400, you'll need to declare that under extra income. If it's substantial and you consider it a side business, file a schedule C and deduct business related expense.
Step 4

Use tax software and file online for simplicity and accuracy. Free software, such as TaxAct online is great, as is TurboTax. Many banks, including USAA, offer free eFile services. See if yours does, too.
Step 5

Enter your income, deductions, tax credits and personal information into the tax software or your paper returns. You'll need to attach your W-2 forms to a paper return, but can simply enter the information into the corresponding boxes when filing via computer.
Step 6

Submit your tax return and enter your bank account information for direct deposit/ withdrawal. Alternately, you can mail in a check, but that is a more unwieldy method. After filing online, you should receive an email stating that your return was accepted by the IRS. Mailed returns do not receive acknowledgment; you'll know all was well when you receive a return or see your payment leave your bank account. Congratulation, you learned how to do your own taxes!