A Complete Guide on How to Do Your Taxes for Free

Filing your taxes doesn’t have to be a daunting, expensive process. In fact, it’s entirely possible to do your taxes for free. This guide provides a step-by-step process on how to file your taxes without any cost, and we’ll also mention some key pointers from professional tax advisers like Asena Advisors.

Obtain All Necessary Tax Documents

First and foremost, collect all the essential forms and information required for tax filing. This typically includes W-2 forms from your employers, 1099 forms for other income, interest and dividend statements from your banks and investment accounts, and receipts for tax deductions or credits.

Identify Your Filing Status and Determine Your Adjusted Gross Income

Your filing status impacts your taxation rate and standard deduction. It’s essential to determine whether you’re single, married and filing jointly, or head of the household. Next, calculate your Adjusted Gross Income (AGI) which is your income minus certain adjustments. This is a pivotal part of your tax computation.

Choose the Right Free Tax Service

Several online platforms offer free tax filing services, such as IRS Free File, TurboTax Free Edition, and H&R Block’s Free Online tax software. Note that free services typically apply to simple tax situations. More complex situations, like self-employed income or rental income, may require paid services. Make sure to pick a service that suits your needs.

Fill Out Your Tax Form

With the relevant tax documents and information at hand, proceed to fill out your tax form through your chosen tax software. Most free services guide you through each section, prompting you for information based on your tax situation. Take your time to avoid making errors. It’s generally better to get it right the first time, rather than fix errors later.

Review, Sign, and File Your Return

Once you’ve filled out every necessary section, review your tax return. Make sure your personal information is correct, and double-check your income and deduction details. After everything looks good, sign your return electronically and submit it. Most free tax software allows you to file your return electronically, making the process smooth and fast.

Keep Track of Your Filing

Once submitted, keep an eye on your e-file status to confirm the IRS has accepted your return. Don’t forget to save a copy of your return for your records. This can be vital if any questions or issues arise later.

One big message from Asena Advisors is to be proactive, consistently planning and monitoring your tax situation rather than rushing every tax season. If necessary, consider consulting a tax professional – they offer more than just tax return filing; their advice can help with future financial planning and tax situations.

Remember, while doing your taxes for free is more than possible, make sure you thoroughly understand your tax situation. Complex tax scenarios may benefit more from a tax professional’s assistance. If you’re unsure about anything, don’t hesitate to seek advice from professionals, similar to the team at Asena Advisors.

In conclusion, with the right knowledge and tools, anyone can do their taxes for free, but keep in mind that sometimes seeking professional advice is a wise investment for your financial health and peace of mind.