How to File Taxes 2014: E-file 1040 and W-2 Forms with IRS vs. Using an Accountant
It can be confusing to know how or when to file your federal and state income taxes, but there are several tax filing options available that will make filing your taxes easy and headache free.
One option, which is used by more than one hundred million Americans, is to e-file your 1040 tax form directly with the IRS. E-filing the 1040 form with the IRS is free if your household income is below $58,000. If your household income is above $58,000, you can still e-file your tax form but you will have to use a commercial tax filing software to do so. There are several commercial tax filing websites available. These options typically have a fee for filing taxes which range from nominal to somewhat expensive so it is worth researching the different software and websites before choosing one.
Another popular option is to sit down with a professional tax preparer. The tax preparer is similar to using a tax preparation software but you are face-to-face with a person. This allows you to ask specific questions which may not be answered through a website or software. A tax preparer will select the best tax filing form that suits your needs. With a tax preparer, you can chose to e-file your tax form or mail it through the U.S. postal service.
Whether you fill out the 1040 form yourself or use software or a tax preparer, most of the income information you will use to file your taxes will come from your W-2 form. Your employer will provide you with a W-2 form for the previous year's earnings.
In addition to federal income tax, some people will have to file state income tax. To find out if you live in a state that imposes an income tax, check with the tax commission. The tax commission will also have information on how to file your state income tax. In most cases, tax software and tax preparers will automatically remind you to file state taxes if they apply to you.
You can file your taxes as soon as you receive your W-2 form, but you have until April 15 to file your taxes without incurring a penalty. If you think you are going to be late filing your taxes, you can go to the IRS website and find information on getting an extension. Once you have done your taxes, if you discover you owe a large amount or an amount of money that would be a hardship for you to pay all at once, you can request a payment plan from the IRS.
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