6 easy steps for filing your tax returns online
Many citizens today file or plan to file their taxes online. There are many unpaid and paid websites where you can do so.
The Internal Revenue Service (IRS) is the agency that collects the taxes of the whole country. You can file your federal taxes, which is the tax collected by the government, as well as most of the state’s tax returns on the IRS website.
E- filing taxes is an easy procedure if you have all the necessary documents handy. For e-filing taxes, you need to follow these simple steps:
• Keep the documents ready: You need the W-2 form, income statements, health insurance coverage documents, money spent on charity and interest statements to file your tax returns. Make sure that you keep these documents handy before you start filling the form.
• Know your type of tax returns: -Once you have the documents ready, see if you fall under the free tax return preparation. If you are a family member of military men, people with disability, or a senior citizen you get leeway on the tax returns. Also, if your Adjusted Gross Income(AGI) is below $60,000 per year, then you can avail the IRS Free File Software Program.
• Keep the finances ready: It is expensive to file the tax returns online as compared to the traditional way. It takes around $20 up to $80 to file a federal tax return. If along with the federal taxes, you want to file the state taxes, then you will need an additional $30 to$50.
• Fill the form correctly: Use the IRS e-file website to fill the correct tax form.
• Do the math: Calculate your income, investment, and taxes. Check for the tax deduction and credit by showing proofs that you donate to charity and have childcare expenses.
• File the tax returns carefully: If you have a child depending on you, then you can reduce your taxes by claiming the child as a dependent.
Best tax software companies for e-filing taxes
For those with an AGI of $60,000 annually, you must use the benefits of the Free File software, which is one of the best unpaid tax software available in the market. This software is a partnership effort of government and private firms that allows people with a low-income to file the federal taxes for free. H&R Block, TurboTax, TaxSlayer, and Intuit are the other popular tax software that you can check out.
While e-filing taxes, choose an e-file provider that is authorized by the IRS. By doing so, you can be assured that the e-file provider is licensed to transfer your tax returns to the IRS electronically.