How Do I File My Taxes Online?

Have you gathered your financial documents?

Have you written down the deductions on the form?

Have you calculated your gross income?

Have you chosen an online filing service to file your tax?

After selecting the service, have you selected the package you require?

Have you entered your information online on the form given by the filing service you choose?

Gather your financial documents. You should receive a W-2 form if you are employed and your employer withholds taxes from your paycheck. You may also receive a 1099 form. These information notices are sent for a variety of reasons, such as if you were paid for services provided as an independent contractor, you received interest or dividends, you received government payments or a retirement fund.

List your deductions. You can take the standard deduction or itemize for deductible expenses. For the 2020 tax year, the standard deduction will be $12,200 for those filing as single or married filing separately or $24,400 for married filing jointly. The standard deduction is required unless you have more than the allowed standard deduction amount in itemized deductions.

Calculate your adjusted gross income (AGI). Since many free sites require that you have an income below a certain amount, you should roughly calculate your AGI before logging online. Simply subtract your standard or itemized deductions from your total income. This will give you a rough estimate of your AGI.

Visit websites that allow you to file for free. You can visit the IRS website to learn about issues related to taxes and prepare and file your taxes easily. If you do not qualify for free filing, then visit the more popular online filing systems that charge a fee. There are many websites that offer online tax filing, which differ according to price.

Determine the package you need. If you are a wage-earner whose employer withholds taxes, then you should look at Basic packages.

After going through the whole process, if you have any problem, simply check up with the IRS or the filing service you have choosen and ask for a helper.