Advice

How to File Taxes Online: A Beginner’s Guide

Team Business Pulse

With the advances in technology and the rapid spread of COVID-19, online services are becoming more widely utilized.

Like most services, filing your taxes with the IRS can be done online very easily.

Overall, there are many benefits to filing your taxes online.

E-filing can cost much less than filing through a professional tax service. It may also allow you to get your tax refund quicker.

What is the Tax Filing Process?

Paying taxes online

The tax filing process requires you to file a form or form with a relevant tax authority that reports your income, expenses, and other relevant tax information.

The taxpayers can calculate their tax liabilities, request refunds for overpayments, and schedule their tax submissions by filing for taxes.

Generally, the tax returns for an individual or a business enterprise are filed on an annual basis. The returns also report wages, interest, capital gains, dividends, investment gains, or other profits.

Everyone who works for a regular paycheck pays the taxes.

All employers withhold a certain amount from your earnings and send them to appropriate tax authorities on your behalf.

There is a lot more involved in this process, including ensuring that you are not paying more than you should.

So How to File Taxes Online?

Millions of Americans file their taxes with the IRS online.

The easiest method of freely filing online taxes involves the following simple steps;

  1. Gather your tax information beforehand, so you can file faster.
  2. Log on to the IRS Free File Program through irs.gov.
  3. Choose a suitable Free File company and prepare to e-file your return through the link.
  4. Find your eligibility for relevant tax breaks with the help of the software.
  5. The software automatically selects your tax forms and does calculations.
  6. If you are late in your filing, you can easily request a 6-month extension through the software.

And How to File Back Taxes?

It is now easy to file for your back tax returns with the IRS online. Follow the simple steps;

  1. Gather your tax documents beforehand, so you can file faster.
  2. If you are missing any documents, request a copy from the IRS through Form 4506.
  3. Download your tax forms for the prior year(s).
  4. Prepare your back tax returns by following instructions from the current tax year form.
  5. Submit your forms with the IRS online, or at the address listed on Form 1040.
  6. You may expect to receive notification for the penalties and interest charges you are accountable for.

 

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What Mistakes Do People Make When Filing Taxes?

Making a mistake when filing taxes

Also, we have emphasized some of the most common mistakes people make while filing their taxes.

Let’s explore them to avoid the possible tax return errors:

  1. Entering an inaccurate social security number.
  2. Making a spelling error on the name, address, and other things.
  3. Choosing the wrong filing status.
  4. Making mathematical mistakes.
  5. Making mistakes in figuring credits or deductions.
  6. Entering incorrect bank account information.
  7. Filing an unsigned tax return.
  8. Filing using an expired Individual Tax Identification Number or ITIN.

Online filing reduces the chances of a lot of errors.

The calculations are made electronically, prompts are issued for missing information, and common errors are flagged.

Frequently Asked Questions (FAQ) Concerning the “Tax Filing Process”

1. How to notify the IRS of a change in the taxpayer’s address?

You can notify the IRS by:

  • A simple telephone call
  • Filing the Form 8822
  • Using the new address when filing for the tax return
  • Sending a written statement through the mail

2. What to do if there is a mistake on an already-filed federal tax return?

The answer is quite simple.

File for an amendment by using Form 1040(X).

3. What are the tax changes for this year?

Refer to the ‘What’s New’ section of Forms 1040 and 1040(SR).

4. Is there an age limit for claiming my child as a dependent?

As for your child, you’ll be able to claim your children as a dependent if they are;

  • Younger than 19
  • Younger than 24 and a student
  • Permanently disabled regardless of the age

5. What is a split refund?

A split refund allows the taxpayer to divide their refunds in any proportion that seems convenient.

You can request a direct deposit of the funds in up to three different accounts.

Conclusion

No one likes to file for taxes.

However, it’s an activity that is completely unavoidable.

You can ease the whole process of tax filing by filing online. This allows you to save a lot of money by not employing professional tax preparation.

Also, it increases your exposure to the tax procedure and tax laws.

Self-help is one of the best things you can do for yourself.

Remember that if you don’t know how to do the right tax filling, always use some professional tax service to make your job easier.