How to File Your Federal Taxes By Yourself

Filing federal taxes requires careful preparation. This guide provides a structured overview to help you navigate gathering documents, making key decisions, and submitting your return.

Gathering Your Tax Documents and Information

Personal Information

The first step is to collect personal information for yourself, your spouse, and any dependents. You will need the full legal name, date of birth, and Social Security Number (SSN) for each individual, or their Individual Taxpayer Identification Number (ITIN) if they do not have an SSN. For dependents, you may need additional records, such as Form 8332 if a custodial parent is releasing their claim to a child. For childcare expenses, you must have the provider’s name, address, and Taxpayer Identification Number.

Income Documentation

A significant part of tax preparation involves gathering all documents that report your income. You are required to report all income, even if you do not receive a form for it. Common income forms include:

• Form W-2, Wage and Tax Statement: Received from each employer, this details your total wages and taxes withheld.
• Form 1099-NEC, Nonemployee Compensation: Reports payments of $600 or more for services from a single client if you are an independent contractor or freelancer.
• Form 1099-INT: Reports interest income from banks or brokerages.
• Form 1099-DIV: Reports dividends and distributions from stocks and mutual funds.
• Form 1099-G, Certain Government Payments: Reports unemployment compensation or state tax refunds.
• Form 1099-R: Reports distributions from retirement plans, pensions, or IRAs.
• Form SSA-1099: Details your Social Security benefits.

Documentation for Adjustments, Deductions, and Credits

To reduce your taxable income, you will need documentation for eligible adjustments, deductions, and credits. Form 1098-T shows amounts paid for tuition, Form 1098-E reports student loan interest paid, and Form 1098 details mortgage interest paid. You should also gather records for other potential deductions, such as receipts for charitable contributions, records of property taxes, and documentation of medical or business expenses.

Other Essential Information

Two final pieces of information are important. You will need your Adjusted Gross Income (AGI) from your previous year’s tax return, which the IRS uses to verify your identity when you e-file. If you are a first-time filer over 16, you will enter zero for the prior-year AGI. You will also need your bank account routing and account numbers for direct deposit of a refund or direct debit of a payment.

Key Decisions Before You File

Determine Your Filing Status

Your filing status is based on your marital and family situation on the last day of the tax year and affects your standard deduction and tax rates. The five statuses are:

• Single: For unmarried individuals who do not qualify for another status.
• Married Filing Jointly: For married couples who combine their incomes on one return.
• Married Filing Separately: For married couples who file separate returns, which often results in higher tax.
• Head of Household: For unmarried individuals who paid more than half the cost of keeping up a home for a qualifying person.
• Qualifying Surviving Spouse: Can be used for two years after a spouse’s death if the survivor has a dependent child and meets other criteria.

Choose Standard or Itemized Deductions

Every taxpayer can reduce their adjusted gross income (AGI) by taking either the standard deduction or by itemizing deductions. The standard deduction is a fixed dollar amount that varies by filing status, age, and blindness. You should compare this amount to your total potential itemized deductions to see which provides a greater tax benefit.

Itemizing involves listing specific expenses on Schedule A of Form 1040, such as mortgage interest, state and local taxes up to $10,000, charitable contributions, and medical expenses that exceed a certain percentage of your AGI.

Select Your Filing Method

There are three primary methods for do-it-yourself filers. The most common is using commercial tax software, which uses an interview-style format to guide you through the process and handles all calculations. A second option is IRS Free File, which offers two paths.

If your AGI is below a certain threshold, you can use Guided Tax Software from partner companies at no cost. If your income is above the threshold, you can use Free File Fillable Forms, which are electronic versions of paper IRS forms that offer only basic calculations and limited guidance.

The Step-by-Step Filing Process

Using Tax Software or IRS Guided File

When using tax software or IRS Guided File, the process is streamlined. You will create an account, enter your personal information, and then input data from your income documents like your W-2 and 1099s. The software uses this information to populate the correct forms and calculate your tax liability or refund. Review the final summary for accuracy before submitting.

Using Free File Fillable Forms

Using Free File Fillable Forms is a more manual process. You must select the correct forms yourself, starting with Form 1040, and enter your financial data directly into the fields. This system performs basic math but does not offer the comprehensive guidance or error-checking found in tax software. You are responsible for ensuring all necessary information is included before e-filing.

Final Submission

The final step is to electronically sign and submit your return. To verify your identity, you may need to enter your prior-year AGI or a self-selected PIN. After you transmit the return, you should receive an email confirmation indicating whether the IRS has accepted or rejected it. An acceptance means the return has been received for processing, while a rejection indicates an error, such as an incorrect Social Security number, that you must correct before resubmitting.

Post-Filing Actions and Next Steps

Tracking Your Refund

If you are expecting a refund, you can monitor its status using the “Where’s My Refund?” tool on the IRS website. You will need your Social Security Number or ITIN, your filing status, and the exact refund amount from your return. The tool provides updates as your return moves through processing and is updated once every 24 hours.

Handling a Tax Payment

If you owe taxes, you have several payment options. IRS Direct Pay allows you to pay online from a bank account for free. You can also pay with a debit or credit card through a third-party processor, which charges a fee. To mail a payment, include a check or money order with Form 1040-V, Payment Voucher, to ensure it is credited correctly.

Keeping Records

It is important to keep a copy of your filed tax return and all supporting documents, including W-2s, 1099s, and receipts. The IRS generally recommends keeping tax records for three years from the date you filed, as this is the typical period during which the agency can audit a return. Some situations may require you to keep records longer. Storing these documents securely, either as physical or digital files, is invaluable if you need to respond to an IRS inquiry.

Amending a Return

If you discover a mistake on your tax return after filing, you can correct it by filing Form 1040-X, Amended U.S. Individual Income Tax Return. You would file this form to correct errors like claiming the wrong filing status, overlooking income, or failing to claim an eligible deduction or credit. The form allows you to explain the changes and calculate any resulting refund or tax owed.