US taxpayers will be able to begin filing their 2021 federal income tax returns on Monday, January 24.
Now is the time to start getting all your paperwork in order, and according to one financial guru and TikTok influencer, if you make less than $72,000, this is something you should avoid.
Nate Hoskin of Hoskin Capital shared with his 153,000 plus points TikTok followers a common mistake people make.
If you make less than $72,000 a year, he says, don’t pay anyone to file your taxes.
Nate said to use Internal Revenue Service (IRS) File for free and the government will pay your taxes for free.
There is no standard fee for filing a return, but most filers charge a flat fee for each return, which can run into the hundreds of dollars.
This is why the IRS offers a free service to help taxpayers.
What are free files?
The IRS Free Files Program is a public-private partnership between the IRS and many industry leaders in tax preparation and filing software.
These tax preparers offer their products for free.
There are two ways for taxpayers to prepare and file their federal income taxes online for free.
Traditional IRS Free File offers free online tax return and tax return options on IRS partner sites.
This IRS partners are online tax preparation companies that develop and offer this service free of charge to qualified taxpayers.
This is only available to taxpayers earning $72,000 or less.
If you earn more than $72,000, the IRS offers free fillable forms, which are electronic federal tax forms that you can fill out and file online for free.
It is important to note, If you choose this option, you should know how to prepare your tax return yourself.
The IRS’s free portal is not open to file tax returns.
What do you need to get started?
If you use the IRS free file, you’ll need to make sure you have some information on hand.
You will need a copy of last year’s tax return to access your adjusted gross income.
You will also need a Social Security number for yourself, your spouse and any dependents.
Make sure you have all income and receipts such as Social Security and unemployment compensation.
You will need a W-2 showing your annual salary and any other appropriate forms.
To receive notification from the free file software company that your return has been accepted by the IRS, you will need a valid email address.
The deadline to file your 2021 federal income tax return is April 18, 2022.
https://www.the-sun.com/money/4443027/common-mistake-americans-make-taxes/ Currency expert reveals common mistake Americans make on taxes that cost them $100