Filing your first tax return can be a difficult task, but with proper guidance, one can file it appropriately. In this guide, we will explore each step of filing a tax return so you can file your tax return correctly and on time.
Step1. Collect and gather all your necessary documents
Before beginning to file your tax return, one should ensure that he/she carries all the necessary documents. These documents typically include:-
W-2 Forms:- these forms are for salary persons, and it is given by your employer and carry all the details regarding your income and tax withheld
1099 forms:- this form is meant for any freelance or contract work
Interest statements:- such as 1099-INT if someone earned any interest
Other income documents:- this may include any other sources of income like unemployment benefits or dividends.
Know or choose your filing status.
You should be sure of your filing status before filing a return. This will determine under which tax regime you must file and what deductions and credits will be given.
Common filing status includes:-
- Single
- Married filing jointly
- Married filing separately
- Head of household
Determine your need to file
Filing a tax return is not meant for everyone; there are certain income limits to file a return. You need not file a tax return if your income does not meet that limit. In certain cases, you may proceed with the return such as:-
You want a refund regarding your taxes withheld
You are qualify for (EITC) Earned income tax credit
Choose the mode of filing the tax return.
Online Tax Software:- If you are a beginner, you can take guidelines to file a tax return online
Tax Professional:- you can approach tax professionals like accountants for complex situations
Free file fillable forms:- these forms are available through the IRS website
Fill Out Your Tax Return
The following steps should be adhered to while filing your tax return
- Enter Your Personal Information:- this may include your name, address, phone number, etc.
- Disclose your income source: This can be done through the W-2 form,1099, or other income sources.
- Claim deductions and credits:- if you are eligible for any deductions and credits, claim them without any delay
- Calculate your tax liability: This would be calculated automatically if you use tax software.
Submit your tax return.
After going through all the steps, submit your tax return. Once completed, make sure to review it for any errors or omissions.
Filing a tax return is a complex task, but by following the above-mentioned steps, you may file your return smoothly.