Filling out your tax return can come with enormous pressure, especially if you’ve never had to do it in the past. You’re not alone! Plenty of people in the United States file their first tax returns successfully by following these steps. Just remember that organization is critical.
Choose a Preparer
One of the hardest steps is often choosing someone to prepare your taxes. Many offices are open seasonally to handle this task, such as H&R Block or Jackson Hewitt. However, you can also choose an independent office that is closer to you, or you can file your tax return yourself online through a software that walks you through the process (like TurboTax).
Gather Information
There is a lot of paperwork you’ll need to complete when filing your taxes. Above all, you’ll need to have your W-2’s. These are documents that your work mails to you that includes all the information on how much you earned. You’ll also need health insurance documents to prove that you had coverage throughout the majority of the year. If you have deductions you’d wish to make, you must have proof of paperwork for each itemized tax deduction.
Brace for Tax Law Change
Even if you filed last year, things could have changed. Every year, tax preparers study to find out what has changed since the previous year to keep their clients from getting audited. Thankfully, you don’t need to be a tax expert to look up these laws. The Internal Revenue Service announces the changes on its website. Here, you’ll have access to all the changes made since the previous year. This can include percent taxed based on income level and even what constitutes a dependent.
Have Personal Information
Your personal Social Security number may be memorized, but do you have all the numbers for your dependents? This data is necessary, and you’ll need to have it when it comes time to file your taxes. You’ll also need addresses of any properties you own, dates of any real estate owned or sold, what you originally paid, and any sales expenses you could have incurred. Without having the dates and personal information, you may find that you’ll have to reschedule your tax preparation to another time—which can be a hassle during tax season.
Decide on an Extension
Unfortunately, it may not always be possible to file your taxes before April 18th. It could be because you didn’t get your forms or you don't have the proper paperwork. Whatever the reason, you can apply for an extension.
By filing for tax return extension, you have the ability to file your taxes after the normal due date. The new date for filing your taxes will be October 16th, which gives you plenty of time to prepare and find a new tax preparer who can handle your situation. This extension may also give you enough time to accumulate the money to pay any taxes you may owe as a result of insufficiently taxed income.
