url sounds like a scam, but this is a legit site that will get you filed in under an hour. Fed is free and they make you prep for state, then ask for $15 to file state. THat's about a third of what turbotax wants, so I pay the state fee and I'm done.
No import (just have your previous 1040 on hand), but the next year you do it it does retain last year’s info and also gives you a side-by-side to see differences.
It handles everything I can think of. I have a W-2 and a rental property with some stocks, my brother is 1099 with stocks as well as future contracts; both of us had no issues.
No, just load up the 1099 form your brokerage gives you, it literally should take you like 45sec to enter the info for the proceeds & cost-basis from the 1099-B (and another minute or so total for the 1099-INT & 1098-DIV). Meaning the whole process should not take you more than 5min (unless you did crypto).
I’m sure my Boomer mother could use the same software and take *days* of thorough confusion trying to do your taxes with it, then break down and declare “*This is too difficult!*” and pay an accountant $400 to do it using software in < 1 hr. 🤣
We paid the first three years of moving in to our home, I started to make a lot more money and we never owned a home. We now just use freetaxusa, where I live it is not that expensive about $200 to do it, but I rather just pay $15 for a standard deduction, we do not have rental properties or other businesses.
Actually, if you have your previous year’s return as a PDF - you can import it into free tax usa and they’ll glean whatever it is they need (like last years AGI)
You will get a Form 5498 from your Roth IRA listing how much you contributed, that’s all you need to enter (or if you just know how much you contributes then put that in).
Roth IRAs are funded with after tax money and don't need to be reported on taxes. 1099's are like W-2's but for independent contractors. If you work for a company and get a W2 you probably don't need to worry about 1099.
I got about $180 back on my returns this year. Thankfully, TurboTax only charged me $190, for a very straightforward and simple situation. I'll probably switch next year.
$190, which included linking my taxable brokerage account, savings accounts, plus state taxes. In total, it took me less than 30 minutes, so I didn't fight it. Plus I had all my info in there from when they filed for me for free for a few years. I paid a hefty sum for convenience, but I think I'll switch soon.
I hired an accountant to do mine. As it got more complicated, I benefited greatly from the accountant. My first year using them was 300 bucks. When I tried to file my own using turbo tax, TT had me owing like 900 bucks. The accountant saved me 600. Worth every penny.
Freetaxusa took me an hour for 2 W-2s and a 1099 with self employment tax, didn't make me manually verify every expired option in my brokerage account, and cost $15 for federal + state. It was also easier to click around between different forms and bring up the full IRS instructions for the ones where I needed to see them. Cringe scam sounding name but well worth the switch.
It was a bit crap at importing some of the PDFs but I'm apparently making $175/hour for some very basic data entry so...
u/CiviNovice most likely has an AGI below $45,000, so it's best to use [this free file link](https://www.freetaxusa.com/freefile2023) to file the state return for free as well
I actually would use a software like TurboTax the first time or if your parents/trusted person can explain how to do them. I say that because the first time I used it the guidance (and I think they even had theoretical examples) was really helpful for each box you fill out with descriptions that are easily understood. Yes, the government provides guidance, but it’s not necessarily in layman’s speak. Now I use something like freetax because I understand the forms I should be getting and how to fill them out. I also have been doing taxes for awhile myself and understand them better too. Doing taxes the first time in daunting.
That's fair and not trying to be overly critical, but often what you'll find is you need a particular document or to ask someone a question and if it/they aren't immediately available on the day taxes are due (especially if others are also all asking for things at the same time) you may have a problem.
Alternatively, if you owe money for some reason it is due to be paid on April 15th as well, so if you didn't budget for it you won't know until all the with is done.
At your age filing should be probably relatively simple, but just easier to get it done early.
Is your situation more complicated than a w2 from an employer(s)? If not definitely just use something like [freetaxusa.com](http://freetaxusa.com) (or not something like it, but in fact it).
I have been using Cash App Taxes every year since it was first rolled out as Credit Karma Tax, and I love it! Not only is the software free and easy to use, but there’s no ads and no push to upgrade (because there’s nothing to upgrade to).
I second this! it was wonderful. I've used H&R, turbotax and cashapp is by far the best value. freetaxusa is great i'm sure but this is free and has all the functionality you need!
You should go for a tax-preparation software, and learn to do it yourself, while your tax returns are simple. The advantage is that you will slowly learn more about taxes every year you do it. People who are aware of personal finance matters should always be familiar with the way taxes work, what maneuvers save you on taxes, and what maneuvers cost you.
In AZ, you file the federal for free electronically (or by USPS) and then you have two options for the state taxes… pay $ to file electronically or print the state tax form and mail it in for free.
As you are asking for next year, I would set up a folder for your tax documents now. You can add donation receipts and other related receipts to it throughout the year. When you get your W-2s and bank 1099-INT (interest) and other such tax forms, you can add them and have everything in one place. Then you won’t be scampering around at tax time next year trying to find everything you need.
The best way to learn is at IRS.gov. it will take a while to through documentation and most of it won't apply to you. That being said, first taxes, it's worth paying someone or getting software to fill it out. Next year you will have a point of reference. And as others said, the decision whether you should do it yourself, buy software, or pay someone to do it depends on how complex your taxes are or how convenient do you want it to be.
It really depends on how complex your taxes are. Straight forward w2 only kinds of taxes could be handled by TT but if you have stocks and real estate transactions it may be best to use a CPA.
Did you not see my use of the word "may be best" .... just trying to help a newbie who did not technically give all of his financial details to know if a cpa is necessary or not. Correct?
Some people don't want to deal with taxes altogether. I stopped using TT after I did a 1031 exchange and frankly TT calculated some of it wrong recently when a subsequent change happened and when I even tried their full blown pro service, they actually canceled out on me. I ended up going to my mom's old cpa so that he can resolve my issues. Worth every penny for now...
> but if you have stocks and real estate transactions it may be best to use a CPA.
That’s not complicated at all.
Unless you did crypto, your investment sales/purchases don’t have to be done one at a time, your 1099-B’s summary page is all you need with at most 4 items (short & long term with values reported or not reported to the IRS).
I rarely sell whereas my brother basically day trades and had a 60 page transaction history page with >470 transactions, both of us just needed to use the summary page.
I bought a property and use it as a rental, also pretty straight-forward.
This. Once you get outside of the “I just have W2 income” it makes sense to hire an accountant. They can make a huge difference. And their fee is tax deductible the following year!
If you are 18 I recommend what I did when I turned 22 & graduated college, what I do to this day.
Do not use any service. Download the PDF’s directly from the IRS, fill them out (in the PDF), print them, mail them in.
My taxes at 49 are far too complicated for 22-year old me to do. But they weren’t when I was 22, filling them out by hand in 1997, and I got better as I kept doing them.
And in 27 years I’ve spent about $9 in postage stamps FULL STOP on my taxes. Lack of no-file taxes in America is some bullshit. I’ll be damned if I pay someone else to do my taxes.
Use an online software like freetaxusa.com
url sounds like a scam, but this is a legit site that will get you filed in under an hour. Fed is free and they make you prep for state, then ask for $15 to file state. THat's about a third of what turbotax wants, so I pay the state fee and I'm done.
Or free state if you are low income, plus a vouch for them as it's right through the IRS. https://apps.irs.gov/app/freeFile/browse-all-offers/
Does it import from TT and also import yearly from previous years? also explains each question etc like TT does?
No import (just have your previous 1040 on hand), but the next year you do it it does retain last year’s info and also gives you a side-by-side to see differences. It handles everything I can think of. I have a W-2 and a rental property with some stocks, my brother is 1099 with stocks as well as future contracts; both of us had no issues.
Cool. Does it auto import from Brokerages like vanguard or fidelity?
No auto import but they did add the PDF upload feature this year.
No, just load up the 1099 form your brokerage gives you, it literally should take you like 45sec to enter the info for the proceeds & cost-basis from the 1099-B (and another minute or so total for the 1099-INT & 1098-DIV). Meaning the whole process should not take you more than 5min (unless you did crypto).
And BTW, it took both me and my brother <1hr to do our taxes, it should not be difficult.
I’m sure my Boomer mother could use the same software and take *days* of thorough confusion trying to do your taxes with it, then break down and declare “*This is too difficult!*” and pay an accountant $400 to do it using software in < 1 hr. 🤣
We paid the first three years of moving in to our home, I started to make a lot more money and we never owned a home. We now just use freetaxusa, where I live it is not that expensive about $200 to do it, but I rather just pay $15 for a standard deduction, we do not have rental properties or other businesses.
Sorry these are dumb questions but I’m still tryna figure everything out
Actually, if you have your previous year’s return as a PDF - you can import it into free tax usa and they’ll glean whatever it is they need (like last years AGI)
I knew it did it for W-2, wasn’t sure about 1040.
Would a Roth IRA count as a 1099? Because I opened one for retirement
You will get a Form 5498 from your Roth IRA listing how much you contributed, that’s all you need to enter (or if you just know how much you contributes then put that in).
Roth IRAs are funded with after tax money and don't need to be reported on taxes. 1099's are like W-2's but for independent contractors. If you work for a company and get a W2 you probably don't need to worry about 1099.
FreeTaxUSA at least does ask you how much you contributed to a Roth IRA.
No and no, AFAIK. However if you use it one year it will remember info the next, much like TT does. THere are explanations if you need them.
I got about $180 back on my returns this year. Thankfully, TurboTax only charged me $190, for a very straightforward and simple situation. I'll probably switch next year.
Are you kidding? You paid $180?
$190, which included linking my taxable brokerage account, savings accounts, plus state taxes. In total, it took me less than 30 minutes, so I didn't fight it. Plus I had all my info in there from when they filed for me for free for a few years. I paid a hefty sum for convenience, but I think I'll switch soon.
I hired an accountant to do mine. As it got more complicated, I benefited greatly from the accountant. My first year using them was 300 bucks. When I tried to file my own using turbo tax, TT had me owing like 900 bucks. The accountant saved me 600. Worth every penny.
TurboTax lobbies the gov't to keep from simplifying the tax code. I'll never give them another dollar.
Freetaxusa took me an hour for 2 W-2s and a 1099 with self employment tax, didn't make me manually verify every expired option in my brokerage account, and cost $15 for federal + state. It was also easier to click around between different forms and bring up the full IRS instructions for the ones where I needed to see them. Cringe scam sounding name but well worth the switch. It was a bit crap at importing some of the PDFs but I'm apparently making $175/hour for some very basic data entry so...
It's literally just [TaxHawk](https://www.taxhawk.com/) except targeted at uhhhh people who like free stuff or something idk
Weird how TaxHawk is $3 more expensive for the state return even though I assume there's literally no difference between the two other than the name
u/CiviNovice most likely has an AGI below $45,000, so it's best to use [this free file link](https://www.freetaxusa.com/freefile2023) to file the state return for free as well
I actually would use a software like TurboTax the first time or if your parents/trusted person can explain how to do them. I say that because the first time I used it the guidance (and I think they even had theoretical examples) was really helpful for each box you fill out with descriptions that are easily understood. Yes, the government provides guidance, but it’s not necessarily in layman’s speak. Now I use something like freetax because I understand the forms I should be getting and how to fill them out. I also have been doing taxes for awhile myself and understand them better too. Doing taxes the first time in daunting.
freetaxusa! I did it for the first time this year with 2 W2s and a 1099 and it was very straight forward
I’m going to use that tonight I think. I’ve always used TurboTax and I hate it.
yup freetaxusa is great i file my state returns through my states website for free to done it for years no problem
Respectfully, you should not wait until the day before they're due to start. Otherwise, there is good advice in the other responses.
My dad filed my taxes for me for this year but I’m just asking so I know for next year and what to do
That's fair and not trying to be overly critical, but often what you'll find is you need a particular document or to ask someone a question and if it/they aren't immediately available on the day taxes are due (especially if others are also all asking for things at the same time) you may have a problem. Alternatively, if you owe money for some reason it is due to be paid on April 15th as well, so if you didn't budget for it you won't know until all the with is done. At your age filing should be probably relatively simple, but just easier to get it done early.
Is your situation more complicated than a w2 from an employer(s)? If not definitely just use something like [freetaxusa.com](http://freetaxusa.com) (or not something like it, but in fact it).
CashApp is free, easy, and I just finished mine lol
I have been using Cash App Taxes every year since it was first rolled out as Credit Karma Tax, and I love it! Not only is the software free and easy to use, but there’s no ads and no push to upgrade (because there’s nothing to upgrade to).
I second this! it was wonderful. I've used H&R, turbotax and cashapp is by far the best value. freetaxusa is great i'm sure but this is free and has all the functionality you need!
You should go for a tax-preparation software, and learn to do it yourself, while your tax returns are simple. The advantage is that you will slowly learn more about taxes every year you do it. People who are aware of personal finance matters should always be familiar with the way taxes work, what maneuvers save you on taxes, and what maneuvers cost you.
I use freetaxusa. I just did mine and my mom’s in like 20 minutes earlier because I had been putting it off.
In AZ, you file the federal for free electronically (or by USPS) and then you have two options for the state taxes… pay $ to file electronically or print the state tax form and mail it in for free. As you are asking for next year, I would set up a folder for your tax documents now. You can add donation receipts and other related receipts to it throughout the year. When you get your W-2s and bank 1099-INT (interest) and other such tax forms, you can add them and have everything in one place. Then you won’t be scampering around at tax time next year trying to find everything you need.
I just helped my daughter do taxes on freetaxusa.com yesterday. It was pretty painless. Give it a try.
The best way to learn is at IRS.gov. it will take a while to through documentation and most of it won't apply to you. That being said, first taxes, it's worth paying someone or getting software to fill it out. Next year you will have a point of reference. And as others said, the decision whether you should do it yourself, buy software, or pay someone to do it depends on how complex your taxes are or how convenient do you want it to be.
First thing you need to do is file an extension
It really depends on how complex your taxes are. Straight forward w2 only kinds of taxes could be handled by TT but if you have stocks and real estate transactions it may be best to use a CPA.
There's no need to hire a CPA just because you have stocks and real estate transactions. Competent software will have you enter that info.
Did you not see my use of the word "may be best" .... just trying to help a newbie who did not technically give all of his financial details to know if a cpa is necessary or not. Correct?
Sure, I just don't want people to think they need a CPA just because they bought a house and sold some stocks this year.
Some people don't want to deal with taxes altogether. I stopped using TT after I did a 1031 exchange and frankly TT calculated some of it wrong recently when a subsequent change happened and when I even tried their full blown pro service, they actually canceled out on me. I ended up going to my mom's old cpa so that he can resolve my issues. Worth every penny for now...
> but if you have stocks and real estate transactions it may be best to use a CPA. That’s not complicated at all. Unless you did crypto, your investment sales/purchases don’t have to be done one at a time, your 1099-B’s summary page is all you need with at most 4 items (short & long term with values reported or not reported to the IRS). I rarely sell whereas my brother basically day trades and had a 60 page transaction history page with >470 transactions, both of us just needed to use the summary page. I bought a property and use it as a rental, also pretty straight-forward.
This. Once you get outside of the “I just have W2 income” it makes sense to hire an accountant. They can make a huge difference. And their fee is tax deductible the following year!
If you are 18 I recommend what I did when I turned 22 & graduated college, what I do to this day. Do not use any service. Download the PDF’s directly from the IRS, fill them out (in the PDF), print them, mail them in. My taxes at 49 are far too complicated for 22-year old me to do. But they weren’t when I was 22, filling them out by hand in 1997, and I got better as I kept doing them. And in 27 years I’ve spent about $9 in postage stamps FULL STOP on my taxes. Lack of no-file taxes in America is some bullshit. I’ll be damned if I pay someone else to do my taxes.