Ah, tax season – a time that often brings a mix of stress and uncertainty. While the idea of filing taxes might seem daunting, taking control of your financial responsibilities can be empowering. For the past 19 years, we have paid someone to file our taxes. We started this because we had to do a quick sale on a house that my husband had purchased with a friend. It created a complicated tax situation. We just kept going back to our tax guy, even though I was filing my parents (and then my dad’s) on my own. This year, since we have a serious lack of income, I will go back to doing ours too.

In this blog post, we’ll explore the steps and tips for successfully navigating the process of filing taxes on your own.

1. Gathering Essential Documents: Begin by creating a checklist of necessary documents, including W-2s, 1099s, and receipts for deductions. Organizing paperwork early streamlines the process.
   • For us, this means having a dedicated area to put all the paperwork as it comes in, and a folder that we keep for things that we collect during the year.
2. Choosing the Right Tax Software: Investigate various tax preparation software options available, considering factors such as user-friendliness, cost, and the level of support offered. Popular choices include TurboTax, H&R Block, and TaxAct.
   • Depending on your income, there are plenty of free options on the IRS website
3. Understanding Your Filing Status: Learn about different filing statuses (single, married, head of household, etc.) and determine which one applies to your situation. This fundamental step sets the foundation for accurate filing.
4. Navigating Income and Deductions: Walk through the process of reporting your income and identifying potential deductions. Explore common deductions like student loan interest, charitable contributions, and business expenses.
   • Most of the information you need for this will be listed on your W-2 or 1099 (or other income document), and is pretty simple to just move from one form to the other.
5. Maximizing Tax Credits: Familiarize yourself with available tax credits, such as the Earned Income Tax Credit (EITC) or education-related credits. These can significantly reduce your tax liability.
6. Staying Informed about Tax Changes: Stay updated on recent tax law changes that might impact your filing. Government websites and reputable tax resources are valuable tools for staying informed.
   • I’ve got to be honest here and say that I trust the programs that I am using to handle this. If I do have a question about something, I will check the website.
7. Utilizing Online Resources: Leverage online resources and guides provided by tax preparation software to answer specific questions or concerns you may encounter during the filing process.
8. E-Filing and Direct Deposit: Explore the advantages of e-filing and opting for direct deposit for your tax refund. These options not only speed up the process but also provide a more secure and efficient experience.
   • We had to send my oldest child’s taxes last year because of a mess up by the company they had been working for. 0/10 – do not recommend. It took a couple of months for the taxes to be processed and a couple more to get the checks.
9. Double-Checking Your Work: Before submitting your return, take the time to review and double-check all information. Correct any errors or discrepancies to avoid potential issues later on.
   • Most of the companies/software you use will walk you through double-checking everything before submitting. If you choose to send in paper forms, then I can not stress doing the double-check enough. Might take a few extra minutes, but is worth it to not get on the bad side of the IRS
10. Seeking Professional Help if Needed: If you encounter complex tax situations or feel uncertain about certain aspects, don’t hesitate to seek professional advice. Consult with a tax professional to ensure accuracy and compliance.
    • Sometimes, the best thing you can do for yourself is to ask for help. If you have had a large income you weren’t expecting (inheritance, quick sale of a home), or have multiple deductions, it might be best to have a professional handle your taxes this year.

Congratulations! You’ve just taken a significant step toward financial empowerment by filing your taxes independently. As you hit the submit button, revel in the sense of accomplishment and the knowledge that you’ve successfully navigated the tax season on your terms. Remember, understanding your finances is a journey, and each step you take brings you one stride closer to financial confidence. Cheers to your financial empowerment!