Do You Actually Need To Pay Someone To Do Your Taxes?
Posted by Richard on February 12, 2020
Those forms look daunting. And those crazy tax words seem intimidating.
But, the fact is, 100 million workers probably don’t really need a tax person to do their returns, according to the IRS. They can do their taxes with the easiest forms (such as the 1040EZ — available online) or just hop to the IRS ‘free file’ website.
If your adjusted gross income is $69,000 or less you can use the Free File website to do your forms, file them electronically (and track your refund) — completely free of charge. Go to: irs.gov/freefile.
Getting all the ingredients together for your tax return probably takes the most time. But, here is what you need if you work for a company and don’t have any complicated business interests:
Your social security number and a copy of your last year’s tax return.
W-2 forms from your employer that show your annual wages. If you made interest, on a savings account, for example, your bank will send a 1099-INT form. If you got income from retirement accounts, you should receive a 1099-DIV or 1099-R form.
After that, it is mainly a matter of filing in the blanks. Your W-2 will show you how much you made and how much was deducted. After you know how much money you made, you get to subtract a chunk from it. This is called the Standard Deduction (see chart). What is left is your Adjusted Gross Income. That is the money that is taxed. You’ll figure out how much money you’ve already paid (through paycheck deductions by your employer). If you paid too much, you get a refund. If you didn’t pay enough, you pay.