How to Do Taxes on Your Own: Your Complete Guide

If you earn a steady income or even an inconsistent one, you’re likely paying taxes or on the hook for them. Employers withhold taxes each pay period from their employees’ paychecks, sending them to the IRS and your relevant state and local governments.

Why Do I Have to File a Return?

You have to file a tax return because you’re probably a taxpayer. The IRS considers taxable income as all income from whatever source derived, including gains realized, unless otherwise excluded.

How to File a Tax Return on Your Own

To prepare your taxes on your own, you’ll need to assemble the correct paperwork. That includes all of those forms that have been coming in from various sources.

How Income Tax Brackets Work

When you begin tallying your income earned for the year, you will eventually end up with your “gross” income from all sources.

How to Calculate Your Taxes

If you work as an employee, your employer will send you a Form W-2 in the mail and possibly electronically. This documents all the details related to your pay, deductions, and other elections made during the tax year.

How to Reduce Your Taxable Income

Aside from having certain types of income, the IRS awards better taxation preferences.  You have two levers to lower your taxable income: tax deductions and tax credits.

TAP THE LINK BELOW FOR the full article on HOW TO DO TAXES ON YOUR OWN