How do I file my taxes myself?
So, what do you need to gather? I have some videos on YouTube titled, "What documents do I need to file my taxes?" These are things you either get in the mail or receive an email notification about, saying, “Here’s your tax document,” or letting you know it’s available to download. This includes mortgage statements, charitable contribution receipts, and interest income forms—the bank will send those to you. If you have stocks or money in retirement accounts, there are forms like 1099-Bs, as well as W-2s. Anything you receive, you’ll need, because the IRS gets that same information.
One requirement when filing forms for people is that you send one copy to the recipient and one to the IRS. They store this data in their system and use it to decide, in many cases, whether to audit someone. If the forms on your return don’t match what they have on file, it’s often an automatic audit, usually resulting in a letter that says you’re missing information and claiming you owe more than you probably do.
If you’re going to do your taxes yourself, definitely use software. Do not download forms from the IRS website and fill them out by hand—you’ll likely make mathematical mistakes. Tax forms can be confusing. You put in some information, then you have to do calculations, transfer numbers from one line to another, and sometimes carry them over to other forms. Use a tax software program. For the love of all things holy, do not fill out forms by hand. I’ve never seen someone do it without eventually getting a letter from the IRS.
If you’re doing your own taxes, you’re probably not going to a seasonal tax shop inside a Walmart or strip mall. In theory, that’s not the same as doing it yourself—but if you’re tempted, ask yourself if you really want to use a company that relies on gimmicky dancers to get your business. If you’re considering doing it yourself, it’s either a full DIY effort or you should hire a professional who works year-round.
I can’t make a video that teaches you everything I know so you can prepare a perfect return and maximize your savings. That’s part of the trade-off—you’re saving the fee by doing it yourself, but you might not save as much in taxes. Be sure you understand the true cost of your tax software. Some advertise “free” filing, but if you look closely at the fine print (which is often too small or too quick to read), you’ll find there are filing fees or upgrade charges. When you compare that cost to a professional’s fee, the difference might only be $100–$500.
You file one return a year; a professional files hundreds or even thousands. We file tens of thousands of returns annually, year-round. If you do it yourself, you’re likely missing out on strategies.
I will admit—something many accountants won’t—if you have only W-2 income, a mortgage statement, a few itemized deductions, and maybe some interest income, you’ll probably get a similar outcome doing it yourself as you would with a professional. But if you have any 1099 income, please consider talking to a professional. Most of the tax code benefits businesses, and if you’re an independent contractor, you are a business. There are many strategies you probably won’t know about if you’re not constantly reading the tax code and staying up to date.
So keep that in mind. Remember, if you do your taxes yourself, the IRS still isn’t your friend—they kind of suck. Just a little reminder.
