Tax Filing Basics Cheat Sheet

Overview

Filing taxes is an annual requirement for most individuals and businesses. Understanding the process ensures compliance and helps maximize deductions and refunds.

Steps to File Taxes

1. Gather Necessary Documents

   • W-2s (for employees) or 1099s (for freelancers).
   • Previous tax returns for reference.
   • Receipts for deductible expenses.
   • Social Security numbers for dependents.

2. Choose a Filing Method

   • Online Filing: Use IRS-approved tax software or e-file services.
   • Paper Filing: Mail a completed tax return to the IRS.
   • Professional Assistance: Hire a tax preparer or CPA.

3. Determine Filing Status

   • Single, Married Filing Jointly, Married Filing Separately, Head of Household, or Qualifying Widow(er).

4. Calculate Taxable Income

   • Adjust gross income by applying deductions and credits.

5. Submit Your Return

   • File electronically or mail before the April 15, 2025 deadline.

Common Tax Deductions & Credits

• Standard Deduction: Automatically reduces taxable income.
• Itemized Deductions: Includes mortgage interest, medical expenses, and charitable donations.
• Earned Income Tax Credit (EITC): Benefits low-to-moderate-income workers.
• Child Tax Credit: Provides tax relief for families with dependents.

Avoiding Common Filing Mistakes

• Missing Deadlines: File on time to avoid penalties.
• Incorrect Information: Double-check Social Security numbers and income figures.
• Overlooking Deductions: Ensure all eligible deductions are claimed.

Tools & Resources

• IRS tax calculators for estimating liabilities.
• Tax preparation software for guided filing.
• Financial advisors for personalized tax strategies.