Have you struggled with the tax filing process? Don’t worry if you do; many people don’t know how to file taxes, so you don’t need to feel bad about it.
Filing taxes seems complicated, but you can simplify the process as you keep these tips in mind. We want to talk about the two most common ways people file their taxes, and the steps you can take to get started online or with physical forms.
Figure Out What Type of Work You Do
Most people who don’t own businesses will work as employees or contractors. Employees get paid from businesses and have their taxes taken out of their paychecks. Freelancers get paid by businesses, but they function as sole proprietors, so they have to pay taxes on their own.
If you don’t know whether you work as an employee or freelancer, you will know based on the form you get.
For example, an employee will get a W2 form at the start of the year stating how much money they made and how much they paid in taxes during the previous year. Freelancers will get a 1099 form stating how much money they made.
If you need help identifying the differences between these two forms, you can go to this link for more information.
How to File Taxes Online
If you want to file your taxes online, you can do so through a third-party business. If you don’t know where to go for this, you can get help with your taxes by going to the link.
Once you go to that link, you can choose a company to help you out. Once you choose a company to assist you with taxes, you just need to follow the steps provided. As you do so, the company will fill in the tax information for you, send you a copy, and deliver it to the IRS.
These online services will help you file your state taxes, so you can get everything done in one place.
How to File With Physical Forms
If you don’t like the idea of paying your taxes online, you can send in paper copies instead. No matter what type of filing you do, you will need a 1040 form, so you can pick up that form and your state tax forms from your local library.
However, if you work as a freelancer or get your money from other income sources, you may need more tax forms.
For example, you may need Schedule 1, 2, and 3 forms if you work as a freelancer. You will know which forms you need as you fill out your 1040 form. The forms include instructions, so you can refer to them as you fill them out, ensuring you do it correctly.
Get a Head Start on Your Taxes
If you don’t know how to file taxes, you can use these tips to help you out. Since your taxes will vary if you are an employee or freelancer, make sure you keep these points in mind. As you do so, you can simplify the process and go through your taxes.
If you need further information about tax forms and filing, check out the rest of our blog for the more great information.