How to do your taxes
February 17, 2017
Filing taxes can appear complicated and confusing on the surface, but if the time is taken to sit down and understand how the forms and finances work, it can save time and even money.
Many students across campus are sorting through their tax information from 2016, and there are many different ways to go about doing it. People may attempt to file the information by themselves, others use filing software and some may rely on other people to assemble their taxes for them.
Sophomore Kyle Puhl has learned basic information about filing taxes from his classes at AU. While understanding the groundwork of the process, he acquires the assistance of family friends to help him in getting them together.
“I know how to do my own taxes,” said senior Hannah Kugele. “When I got my first job and had to fill them out, my dad showed me how to use TurboTax and file them myself. I know that it sounds like a scary process, but it’s really quick and easy. It takes between 10-20 minutes once you know how to do them.”
Since April 15 falls on a weekend, the tax deadline is April 18. This is the last day to file taxes and pay what is owed.
Filing as an employee versus as a sole proprietor, or someone who is self-employed, follows different steps in sorting out their taxes. This article focuses on filing as an employee with information from the IRS website, since many students who pay taxes fall into that category.
The IRS website recommends recordkeeping year-round to make preparing to file taxes as easy as possible. This mainly includes keeping receipts, canceled checks, proof of income, and keeping proof of potential deductions.
Another way to get a head start on keeping taxes organized is to understand and update a W-4 at the beginning the year.
The W-4 form explains on itself that it exists to enable employers to withhold a fair amount of income tax from their employee’s paycheck. The form has instructions that come along with it, but in general is asks about things that may affect the fixed percentage that is taken out of each person’s wages, like marital status and exemptions.
If it’s determined that more than enough money was taken out of a person’s paycheck, a tax refund will be sent to the taxpayer to reimburse them.
Employers are also legally required to send their employees and the IRS a W-2 form, which provides important information that will be needed to complete a tax return.
Other income information forms may be applicable to different situations as well, including a Schedule A if any itemized deductions are planned.
Completing and organizing this information should make the rest of tax filing a smoother experience.
In the act of preparing tax returns, it has become increasingly popular to use online tools and programs to sort everything out. The IRS website provides links to free or charges software to aid in doing this. Popular options include TurboTax, H&R Block, and the FreeFile system if the person’s income is less than $62,000 per year.
Forms that may be to complete tax returns include: 1040, 1040EZ or 1040A. These forms have instructions on how to fill them in, but a filing program will help with efficiency, making sure that the correct form is used and that the information is in the correct location. Most information will be referenced from the previously organized forms.
If applicable, also input the information from the Schedule A form.
The software being used or a licensed tax preparer will let the taxpayer know how much they owe, and that amount is due by April 18.
Once it is all submitted, a tax return can be expected within 21 days if applicable to the taxpayer’s situation. Then they continue to prepare for when the next tax season begins.
“There is a huge value in being able to do your own taxes,” said Puhl. “You can do your own taxes at your own rate or as soon as you want to and you do not have to rely on someone else for tax services.”