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How to Do Your Taxes on the Cheap

January 30, 2012 By 9 Comments


Tax season is upon us and accountants are flooded with receipts. If you do your own taxes you are probably collecting all of your documents and W-2s so you can file soon. I recently read an article on Forbes about how to file your taxes on the cheap and it mentions the various computer-based programs that are available to you.

If your parents are still claiming you then you probably won’t be filing and claiming deductions, but it would still be good for you to start learning how to prepare your tax returns for once you do start to claim yourself.

As an investor, you will need several statements when you begin to file your taxes. Your brokerage should give you a form that will summarize your buys and sells for that year. If you traded stocks in an IRA then you won’t get your final forms until after April since you have until April of the current year to contribute to your IRA for the present year.

If you began a business this year or worked as a 1099 employee then you will definitely need the help of a professional tax preparer to make sure that you get all of the deductions you are entitled to. I like to use TurboTax.com, it pulls in all of my information from the previous year and guides me step by step through all of the deductions and credits I am entitled to. Even if you only worked at a pizza delivery boy, you may be able to deduct the cost of maintaining your car. Ttax credits for each year are updated in the newest version of TurboTax.

For next tax year, begin saving all of your receipts and writing down your mileage and where you were going. You would be surprised at how many deductions apply to small businesses and 1099 independent contractors. See Pub 1799 for Independent Contractor and Pub 334 for Tax Guide for Small Business. If you decide to do your taxes on your own you should visit IRS.gov and research the forms you will need. They will mail you any IRS publications you will need free of charge.

How do you do your taxes? Do you use tax software or hire an accountant?

Get your biggest tax refund, guaranteed. Download TurboTax® for Mac now.

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About LaTisha

"Money is a tool. Use it to get where you want, but don't let it control you."

Writer, runner, competitive as heck. Love to laugh and make others laugh. Focused on helping you build success and stay motivated along the way. Start investing now and let’s build wealth together.

  • http://the-llc-company.com Brian

    I always hire an accountant for the first year of business in order to get everything done right the first time. This sets up a good template to follow and copy in future years when you do your own returns (though I still use software to help me just because it gets rid of silly math or writi`ng errors).

    • http://www.FSYAonline.com LaTisha

      That is a smart idea. At least then you can get a head start on your major deductions.

  • http://dollardisciple.com Dollar D @ The Dollar Disciple

    I think if you make under a certain amount and you have a simple return, you can file for free online.

    For my business, a buddy of mine gives me a good deal on tax prep so I always use him. It’s tax deductible anyway :)

    • http://youngadultfinances.com LaTisha

      Nice. I have to file for business expenses also so I use TurboTax. I don’t have enough personal deductions to make it over the standard. I think I’m one of the few that actually likes tax time :)

  • http://add-vodka.com Daisy

    I usually go on HR Block and file my taxes myself. It costs me $28 and it’s easy. However, when my finances become a lot more complicated – which they will eventually – I don’t think I’ll be able to (in patience or expertise) do them that way.

  • http://superfrugalette.com Super Frugalette

    I used to work as an accountant so I just use a blank 1040…so boring, but it works!

    • http://youngadultfinances.com LaTisha Styles

      Wow. I think I would pass out if I had to do that! lol

  • http://everythingfinanceblog.com Tushar@EverythingFinance

    Over the years our taxes have become complicated with an LLC, mortgages etc. So an accountant / tax consultant have become a necessity. But I miss the days of form 1040EZ with the standard deduction :)

    • http://youngadultfinances.com LaTisha Styles

      Me too! I used to do the phone in option when I was younger.