Tips For Doing Your Own Taxes

With e-filing taxes gaining popularity, more Americans are turning to their computers to file. The ease of tax-filing websites and software has streamlined the process, making it simpler to prepare taxes without professional help. If you’re self-preparing your taxes this year, follow these best practices to ensure accuracy.

Verify Tax Filing Deadlines

The tax filing deadline for 2021 returns is Monday, April 18. Although April 15 is commonly assumed as the deadline, it may change if it falls on a holiday or weekend. To avoid late penalties, confirm filing deadlines in advance.

Take a Look at Previous Returns

Reviewing your prior year’s tax return can simplify the process by providing necessary personal information, such as Social Security numbers. This can also reduce errors.

Collect All Documentation

Gather all necessary documents, including income records and financial statements. These may include:

• Employment documents (W-2)
• Unemployment records (1099-G)
• Self-employment income (1099s, Schedule K1, 1099-MISC, business expenses)
• Rental income documents (income/expense records, estimated tax payments)
• Retirement income (IRA/pension income (1099-R), Social Security income)
• Investment and asset income (dividends (1099-INT), sale of property records)
• Additional income/losses (hobby income, gambling winnings, jury duty records)

Decide If It Makes Sense to Itemize Deductions

With standard deduction amounts increasing, fewer taxpayers itemize deductions. Itemizing is only beneficial if your deductions exceed the standard amount. Tax software can help determine which method is best for you.

If itemizing, gather records of deductions such as charitable contributions and mortgage interest statements (1098).

Include Your State Tax Return (If Required)

Most U.S. residents must file a state income tax return, except in:

• Alaska
• Florida
• Nevada
• South Dakota
• Texas
• Washington
• Wyoming

New Hampshire and Tennessee only tax investment income, not earned income.

Review Your Return Carefully

Double-check all figures and information before filing. Errors can lead to penalties or an inaccurate refund that must be repaid.

Understand Your Filing Options

The IRS Free File program offers tax preparation software at no cost for taxpayers with an adjusted gross income (AGI) below $66,000. Those with higher AGI must use fillable forms, either on paper or electronically. The IRS website is safe and can expedite refunds.

Submit Your Taxes on Time

Always file your taxes on time, even if you can’t pay the full amount. Late filing may result in penalties and interest. If owed a refund, you can track it using the IRS "Where’s My Refund?" tool.

Getting Them Done Right

Tax season can be stressful, but preparation can make the process easier. Organize documents early, allow time for review, and research tax-saving strategies before filing. With proper planning, you can avoid common mistakes and ensure a smooth tax season.