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(CNN Spanish) -
If you pay someone to prepare your tax return, save yourself the expense and do it yourself with the free tools of the Internal Revenue Service (IRS, for its acronym in English).
Also, if you do it online, you will avoid delays in refunds.
The IRS began receiving tax returns on January 23 and taxpayers have until April 18, 2023 to file them.
IRS Tax Table 2023: How to calculate how much I have to pay based on income and filing status?
First of all, to file your tax return it is necessary that you know how much money you earned during the year for which you are going to declare.
Once you know this amount, you'll need to decide whether to take the standard deduction or itemize, according to the IRS.
Once you have resolved these issues, we will tell you step by step how to file your taxes and thus avoid errors in the process.
1. Gather the necessary documents
According to the case:
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If you are a full-time employee, your employers should have sent you the W-2 form by January 31.
This shows the wages you earned during the year, as well as any taxes that were withheld.
If you are self-employed or contracted, you may receive a 1099-NEC form with details about what you earned.
You may also receive documents showing dividends or interest earned on investments (Forms 1099-DIV or 1099-INT, for example).
If you're a college student, you'll receive a 1098-T form that shows how much you paid in tuition, as well as any amounts you received from grants or scholarships, to help you calculate deductions and credits related to educational expenses.
Receipts for charitable donations, medical and business expenses, if you make an itemized statement
Here you can consult more types of forms to know which one applies in your case.
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2. Determine your marital status
Your filing status is used to determine your filing requirements, standard deduction, eligibility for certain credits and your correct tax, explains the IRS.
You will then need information about your marital status, which is determined by whether or not you are married under US law.
If applicable, the spouse's year of death is also required.
The percentage you pay of household expenses also affects the option you must choose on your return, depending on the tax agency.
Don't panic if you got an alarming notice from the IRS about your tax return
3. Decide how you want to file your tax return
The IRS recommends using tax preparation software to make it easier and more accurate to file returns online.
If your Adjusted Gross Income is US$73,000 or less, you have the option to do it for free and on your own through Free File, a tool that allows you to prepare and file your federal income tax return online at the IRS partner website or by using Free File Interactive Forms.
The software often includes step-by-step instructions and help for taxpayers.
You can use an electronic file provider authorized by the IRS online filing program, who are qualified to prepare, transmit, and process returns online.
To locate these authorized providers, you can check here the database provided by the US tax agency.
Paper tax return sent by regular mail.
See if you qualify for free tax preparation.
The IRS offers free tax help to low-income people, members of the Armed Forces and their families, people with disabilities, the elderly, or taxpayers with limited English proficiency.
4. Determine what type of statement is best for you
You can review here the keys of the tax reform to determine if it is convenient for you to present a standard deduction or an itemized return.
Do I have to pay taxes for transferring my 401k funds to an IRA plan?
5. If you owe money to the IRS, you will have to pay your taxes
You can make your tax payment online through the IRS website.
Full or partial payments are accepted, as well as installment payment plans.
According to the IRS, penalties and interest will continue to accrue until you pay the balance in full.
6. File your tax return before April 18, 2023
Either you file your taxes using the online tools explained above or you do it by mail.
The IRS recommends filing online and receiving any refund via direct deposit this year to avoid delays.
The deadline to file your return this year is April 18, 2023, as the original deadline was April 15, but due to the weekend and the District of Columbia Emancipation Day holiday, which falls on Monday April 17, the date moved three days.
Taxpayers requesting an extension to pay taxes will have a deadline of October 16, 2023 to do so.
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