How to Do Your Own Income Taxes

Every year Americans start counting down to April 15, when their income tax returns are due.

Every year Americans start counting down to April 15, when their income tax returns are due. Some people file as soon as possible. Others don't file at all, because they don't know how or if they're supposed to file and can't afford to pay someone to do their taxes. For the average American, doing your own taxes may be tedious, but it is really just a straightforward task of filling out forms and doing basic math.

Things You'll Need

• Tax forms
• Calculator

Instructions

1. Find out if you have to file. The requirements are a little complicated, as you have to follow several charts and check several forms to see if you have to file taxes. The rules are based on how much money you made, how old you are and whether or not you can be claimed as a dependent on someone else's taxes. The IRS has a page to help you determine if you are required. Even if you are not required to file, you may be due a refund, so you should consider filing anyway.

2. Gather your tax documents. Find all of your W-2 forms showing how much money you made and were taxed on by each employee you worked for in the previous year. Your employer is required to send them out by the end of January. If you haven't received one, you should contact your employer. You should also receive forms such as 1099s if you made money from other sources. Some sources of income do not require that companies send you forms if you make below a certain amount, but you are still required to report those amounts. You will also need to know how much you paid for your mortgage interest, paid in student loans, received in interest from banks and in general any financial transactions you made in the last year.

3. Determine which form you must file. Start by looking at the simplest form, the 1040EZ, and read the instructions for the form to see if you can file with this form. If this form is not right for you, read the instructions for the 1040 and 1040A to see which one is the correct form for you to file. You can download these forms directly from the IRS website. Links to them and their instructions are in the resources section below.

4. Take a day. You will need to set aside a good a few hours or maybe even most of a day to go through the tax forms and your documents and fill them out. Double check your work. At times it may be confusing, but if you have all of your information and a calculator, you should be able to get through it.

5. Use software. If you are having trouble doing it by hand, you can buy tax software that will almost file your taxes for you. The software will ask you many questions and want you to input all of your financial information, but it will make things much simpler for a low cost. TurboTax is the leading tax software and can be used online.

Tips & Warnings

• FIll out your forms carefully and slowly.

• If you have questions, call the IRS or a tax consultant.

Resources

• Who Must File Taxes?
• Form 1040
• Form 1040 instructions
• Form 1040EZ
• Form 1040EZ instructions