Table of Contents Hide
If you’re stressed about your taxes, you’re not alone as many Americans feel extremely stressed during tax season.
Many Americans opt for an accountant, but you might have to resort to doing your own taxes on occasion. But how do you go about filing your own taxes without making mistakes and adding extra stress?
This quick guide will show you a few tips on how to file taxes and reduce your stress.
Here’s how to do taxes on your own:
1. Go to Tax School
One of the fastest ways to get ahead with filing your own taxes you can go to a tuition free tax school.
You’ll learn how to do your own taxes from a group of teachers who are all professional tax accountants. They’ll give you a basic overview of how to read a tax form and what the changes in the law are.
They won’t give you individual advice on your case but can give you an overview of how to optimize your taxes for your situation.
Make sure, however, that you also consult a professional accountant even when filing your own taxes. In most cases, teachers can’t give actual legal advice pertaining to your situation.
2. Learn the Different Designations
The first thing to learn about filing your own taxes is to learn the different designations.
For example, if you receive a W-2 form it’s because you’ve worked as an employee. 1099s are for freelance contractors. There are also versions of a 1099 form for earning royalties from entertainment and artistic products and services.
Each of these designations will allow for tax deductions. If you’re a freelancer, you might save more money than a W-2 employee. If you earn royalties, you might have to structure a business to pay less tax.
3. Keep Track of Expenses
If you’re an entrepreneur, then you must keep track of your expenses at all times. This helps you lower your tax obligations when you have to file.
Your expenses could help you lower your tax obligations. For example, you might get a discount on your taxes if you show expenses needed for your work.
This can include books, tools, technology, etc. For this, you might need a professional tax accountant to advise you on what expenses work. However, you can list these expenses on your tax returns.
Make sure you always keep receipts for your expenses. In case of an audit, you want to prove that you did indeed pay for these expenses.
That’s How to Do Taxes on Your Own
Now you know how to do taxes on your own and hopefully optimize your obligations.
You should consider going to a tax school. Here, you’ll learn how about doing your own taxes and you’ll learn from professionals. Make sure you also consult a professional on the side.
You should also understand the different designations when you receive income. If you’re an entrepreneur, you might have to learn about business structures to lower your tax bill. You’ll always have to keep track of expenses in case of an audit.
You can find more financial articles on our website.