Dealing with taxes can be intimidating but with the IRS providing online services, the whole process is much smoother and efficient.
Be it a business owner, Freelancer or an individual taxpayer knows how tiring it is to file taxes online, which is why grasping the potential of filing taxes online is beneficial.
We’ve formulated the absolute step-by-step guide to file taxes with the IRS Online.
1. Gather Your Tax Documents
Doing the first step is key if you want seamless online filing, which is compiling all the documents that you need for your taxes. The documents that are provided will allow the IRS to see how much and what funds they need to return accurately. Below is a comprehensive list of documents that are usually required:
W-2 Forms: This form displays the salary earned and the tax amounts taken from each paycheck. Don’t forget to collect the W2 forms from any employer you had during the year.
1099 Forms: Reporting income from renting out a property, dividends, or earning interest? All these require this form. Payments done to contractors are reported using 1099-NEC forms.
Form 1040: Among the different tax forms available, this one is the most used by individuals for completing their tax returns as it captures the complete picture of earnings and everything that comes with it.
Schedule C: self-employed, freelancers and small business owners who file taxes on business income and expenses must include Schedule C. Sort and keep the documents showing the business information as you will need it for future preparation (like for example, crafts, trips, or software used).
Deductible Expenses Receipts: If you are claiming a list of deductions or using the standard deduction, ensure to document deductibles such as health expenses, charitable gifts, business-related expenses, or mortgage interest.
Social Security Number (SSN) or Taxpayer Identification Number (TIN): Identification with the IRS is done with these numbers. Confirm {full name} using the right number so that paperwork is not delayed.
Bank account details: In case you expect a return after the filing period, providing your account details would facilitate the tax return transfer via direct deposit, which is faster.
Last year’s Tax Return: It can also be used for identity fraud proofs while making filing easier by comparing the information provided against that from last year.
2. Choose an IRS-Approved E-Filing Method
The IRS has various ways of filing returns online. Picking the best method has to do with the amount of income, the tax return, how intricate it is, and other personal preferences. Let’s go over each option’s features in detail:
a. IRS Free File
If your amended gross income (AGI) is less than or equal to $79,000.00, you can file your taxes at no charge with the help of the IRS Free File program. This service works with certain tax preparation software companies that offer no-cost filing options.
The Free File program helps you throughout the entire filing process to make sure you receive all of your deductions and credits. This service can be reached through the IRS Free File website.
b. IRS Direct File (Pilot Program)
The IRS is running a direct pilot filing program in some states that lets taxpayers file directly to the IRS without third-party software.
This option is valid for people with uncomplicated returns like those who work and only receive W-2 income. It’s an extremely valuable option for straightforward filers who do not need a lot of help with taxes.
c. Tax Software (E-File Providers)
If you have a more complicated return, it may be best to use paid tax programs such as TurboTax, H&R Block, and TaxSlayer. These companies offer a complete approach, assisting in entering income data to planning for deductions.
An added benefit is that many of these services interface with IRS e-file, allowing you to send tax returns directly to the IRS. Other features may include error checking, audit protection, and additional assistance if necessary.
d. Authorized Tax Professionals
If you have a more complicated tax situation (multiple income sources, business income, various deductions), there could be a lot gained from having a qualified tax professional (like a CPA or EA) do your taxes.
These professionals will help ensure there are no mistakes, guide you through the complexities of tax laws, and make sure you meet all IRS requirements.
3. Complete Your Tax Return Online
After you select an e-filing method, you will need to follow the steps below to file your taxes. You can complete the forms using the website which guides you through automated internet-assisted software.
Enter Personal Information: Type in your entire name, Social Security Number (SSN), filing status: Single, Married Filing Jointly, and information about dependents.
Income Reporting: In this section of the form, enter all earnings including wages, self-employment income as well as any earnings from interest, and dividends. Double-check that your income statements correspond with your W-2s, 1099s, and other income forms.
Claiming Credits and Deductions: This is a fairly technical component of your return. You can select among the following:
- Standard Deduction: This is the basic option that allows you to deduct a set amount that corresponds with your filing status.
- Itemized Deductions: This can be selected if qualifying expenses in your case are more than the standard deduction. The most common are mortgage interest, donations, and medical costs.
- Tax Credits: Find out more about claiming tax credits that can help lower the amount of tax you owe like the Child Tax Credit (CTC), Earned Income Tax Credit (EITC), and education credits such as the American Opportunity Credit and Lifetime Learning Credit.
Review for Accuracy: Carefully check everything to ensure correctness and avoid mistakes that could lead to the IRS reviewing your claim. Special considerations must be given to figures, names, SSNs, as well as the deductions you claimed.
4. Submit Your Tax Return
When your tax return is complete, your next step is submission. As per the option chosen, submit the return through the IRS e-file to process it electronically.
If a Tax Payment is Needed: You can pay directly through the following methods which are quick and easy:
- Direct Pay: It is the simplest and quickest means available and hence also the most efficient.
- Debits or Credit Cards: This means of payment while instant, comes with a caveat in that it may incur processing costs.
- IRS Payment Plans: The IRS also has payment plans where you can pay in installments if your debt is higher than what you can afford.
In Case Money is Owed To You: You should rather prefer a direct deposit to expedite the refund process. Make sure you provide your bank account to enable this.
Save A Copy: Keep a digital or physical copy of your return after it has been filed and the confirmation receipt. This will allow for better tracking of your return and can be used at a later time too.
5. Track Your Tax Return Status
Filing a return allows you to keep track of its status with the help of several tools:
- Where is my Refund? This function enables tracking of the refund in real-time.
- IRS2Go App: Download the official mobile app for easy access to refund status updates, payment options, and more.
- IRS Hotline: You can call the IRS for assistance if you encounter issues or need to check the status of your return.
6. Common Mistakes to Avoid When Filing Taxes Online
Here are issues many people commonly encounter that can slow down your return or increase problems with the IRS.
- Details on SSN or TIN: These forms of identification must be correctly entered here. Ensure the SSN or TIN details are accurate.
- Name of The Taxpayer: The name on the return being filled and the social security card must match.
- Filing Status: Ensure to check if you are “Single”, “Head of Household” or “Married Filing Jointly”.
- Inaccurate Calculations: If you are audited or the return is delayed having different calculations other than the proper ones would cause the initial problem.
- Unreported Income: Ensure all income earned including freelance gigs and side jobs is declared.
- Missed Claims: Benefits such as child care credits EITC should not be ignored.
- Signature: Even after filing electronically, if you forget to sign it, the return will not be accepted. Not dating is also another reason for concern.
7. What to Do After Filing Your Taxes
Having filed your tax returns, it now becomes paramount to take the following steps:
- Receive Confirmation: Follow up with your email and IRS account for any notifications or confirmation related to the return status.
- Follow Up On Refund Status: If you are entitled to a refund, ensure you use any of the IRS available tools discussed previously.
- Keep Copies: Maintain records of your tax returns and other relevant supporting documentation for a minimum of three years.
- Start Planning: If appropriate, consider changing your withholdings. For self-employed individuals, begin to make plans for estimated tax payments.
What EasyFiling Can Do to Help You File Your Taxes Online
Many taxpayers believe that filing taxes with the Internal Revenue Service online is a difficult task. To make things easier, EasyFiling offers assistance with strategies to make the process efficient. EasyFiling assists as follows:
Preparer Of Tax Documents: EasyFiling helps clients in collecting and arranging all reasonable tax documents to ensure that no valuable information is overlooked.
E-Filing: We cover all methods of e-filing for individual and business tax returns, including those developed by the IRS and all others used by professional tax preparers.
Tax Deductions: We are committed to finding ways through which you may qualify to pay lesser taxes because of the available deductions and credits.
Directly File To The IRS: EasyFiling files your tax return electronically with the IRS via our e-filing system, which is encrypted. This ensures all IRS submissions are secure and processed accurately and on time.
Assistance In Paying The IRS: Where clients are liable to pay tax, EasyFiling will assist in selecting the most appropriate payment method, which could include setting up installment payment agreements.
Expert Advice: EasyFiling works with certified professionals, who can expertly solve your most difficult tax problems.
With EasyFiling you will experience less stress and worry during tax season because we will help you file your taxes accurately while increasing your refund.
Nabin Adhikari
