Doing Your Taxes By Yourself
Doing Your Taxes By Yourself – 3 myths Demystified
There are times when a tax professional may help, but, for the most part, doing your taxes by yourself is fairly simple. Like most things in life, when you do your taxes by yourself just once, a lot of the inhibition seems to vanish.
If you’ve been holding back from doing your own taxes because you thought the tax filing process was too complex, then you need to give it a try. Many years ago when taxes were done by paper and pen, it was a complex process for many taxpayers.
We had to refer to instruction books and various tax tables to get it right. I used to prepare my return with a pencil so I could erase if I needed to, and make a photocopy which I signed and mailed to the IRS.
But today, that’s not the case. With online tax filing products such as ours at the HBS Financial Group, it’s a simple process. Our program was developed with the novice taxpayer in mind, using an interview process. You don’t to know taxes, or be a finance major in college, we understand what your concerns are, and we do our best to help you through it.
Taxes are just too complex
You often hear politicians saying how complex the tax code is and how it favors the rich. The press adds their opinion, and demands tax reform. Then we start getting phone calls and emails from politicians asking for money so they can do something about tax reform which never happens.
If you have ever wondered why the tax code is so messed up, over 50% of lawmakers are millionaires. Makes one wonder who they are serving?
Didn’t mean to get off track, but needed to say it. In today’s world, most American taxpayers work at a traditional job, and get a W-2 at the end of the year for their wages earned. With interest rates so very low, most now never get a 1099-INT form. With so little to report on a tax return, how can doing your taxes by yourself be complicated?
You’ll always find certain situations where hiring a tax professional makes a lot of sense. Maybe you’re running a small business and are working a lot of hours, or have extensive investments, and just don’t have the time. But if you work as an employee of another business, then it really is simple.
With the new tax law that went into effect on January 1, 2018, most taxpayers didn’t need to itemize their deductions any more. The law almost doubled the standard deduction which meant easier tax filing for a lot of taxpayers. Doing taxes by yourself at our site makes a lot of sense. You pay $25 for everything. That’s it!
If you have a side hustle in addition to your regular job, you’re adding a couple of new forms to your regular return. But that shouldn’t make you shy away from filing your own taxes online. Our online tax program will guide you through the entire process. If you have any questions along the way, our friendly and competent support staff stands by to assist.
I may get audited
Doing your taxes by yourself is not an invitation to the IRS to audit your return. Nor does hiring an expensive CPA to do the same type of return mean that you won’t be audited. The IRS doesn’t have the manpower or equipment to audit every return it processes. They have a series of triggers built into the system that will flag a return if one of them is violated.
So, it really doesn’t matter who prepared your return, if you have an item in there that triggers a hand review, it will happen. As an example, say a family of four with total income of $75,000, shows charitable contributions for $20,000, it would probably be pulled out for a review.
Hiring a professional tax preparer, familiar with the tax rules and filing process, would mean he would more than likely make less errors, but that is no guarantee your return won’t be audited.
Use the HBS Financial Group online tax filing program and you’ll see how to file your taxes by yourself with ease. Simple or complex…one low $25 price.
I’m not required to file a return
file a return for 2021. A single, under 65 person can make $12,550, and a married couple filing jointly can make $25,100. For those over the age of 65, a single person can make $14,200, and a married couple filing joint can make $26,450.There are some taxpayers who may not have to
The number of taxpayers that fall below those limits and aren’t required to file a return, is low. However, if you maybe worked for a short period of time, and your gross income is below the filing threshold, and you had income taxes withheld, you need to file if you want that money back. The IRS will never refund it without a filed return asking for it.
There are many factors that need to be considered when it comes to filing a tax return. For instance, if you worked a side gig and your total income earned is $400 or more, you must file a tax return. Granted, you might be able to come up with expenses that exceed $400, but you have to file a return and show them.
You may also qualify for certain tax credits because of the low income, but if you don’t file a return, you forfeit them.
Doing your taxes by yourself is fairly simple. Our intuitive program will ask you the right questions based on your life style, and will get the forms ready for you. No wondering what forms you need, and no matter if your return is simple or complex, we’re there for you.
An accountant and tax preparer by profession, Gust’s true passion lies in his company blog titled “HBS Financial Group, Ltd.”. Through this venue, he not only tries to teach individuals about budgeting, money management, and taxation but he writes the majority of the articles as well.