Are you thinking about filing an online income tax return? If so, then here’s a quick preview of what to expect.
You’ll be asked a series of questions
These questions are divided into three main groups. The first set of questions will be asking you about your income tax filing status. You’ll be asked for your name, address, birth date, social security number, marital status, spouse, dependents and your occupation.
The next step in the process of filing an online income tax return will be to answer a set of questions about the income you earned. If you have income from more than one source, you’ll be glad to know there’s an easy method of entering your other income sources.
Here’s list of income sources you’ll be asked about: Wages, salary, W-2 form, 1099 form, investments, interest, dividends, stocks, mutual funds, contracts, capital gains, business income, social security, IRA, tax refunds, government payments, rental property, partnerships and other income such as gambling winnings.
Once you’re done with the income section of your online tax return you’ll move on to the deductions and credits section. This is where you get to minimize your taxes. I’ll just cover the basic categories here, but their are over 350 tax deductions and credits that may be available to you.
Here are the main deduction and credit categories: Your home, you and your family, cars and other things you own, education, charitable donations, medical, taxes paid, retirement, investments, employment expenses, other tax deductions and credits.
Once you have entered all of your tax return filing information, calculations will automatically be made to figure your tax refund or tax you owe. Filing your online income tax return is the next step and then you’re done. Just follow the prompts you’ll be given for filing your tax return online and you should have your tax refund back in no time.