How To Navigate Tax Forms Without Confusion

Filing your tax return involves filling out a range of forms to report your income, deductions, tax credits, and other important information. Around tax season, you’ll also begin receiving tax forms in the mail from employers and financial institutions. 

If you are having trouble making sense of this paperwork, you are not alone. Learn how to fill out tax forms without confusion and gain confidence in your filing process. 

Understand Common Tax Forms You May Receive and Need To File

Terms like “W-2” and “Form 1040” may feel completely unfamiliar to you, complicating your tax filing process. However, the forms themselves are often straightforward once you understand their general purposes. Take the time to review common tax forms to clarify your filing process.

For example, you may receive any of these forms in the mail:

• Form W-2: A form provided by your employer that documents your earnings
• Form 1098: A form that reports interest you paid on a mortgage or student loan, college tuition you paid, or a motor vehicle you donated to charity
• Form 1099: A family of forms that reports all income aside from salary, wages, and tips

Meanwhile, you may need to fill out any of these federal tax forms as part of your tax return filing:

• Form 1040: The primary form to submit with your annual federal tax return that reports your income and deductions
• Schedules: Additions to Form 1040 that report details like itemized deductions, profits or losses from a business you own, self-employment tax, etc. 
• Form W-4: A form to give to your employer to tell them how much federal income tax to withhold from your paycheck  

Taking the time to familiarize yourself with these forms can help you feel more confident when filling them out. 

Research Questions on the IRS Website

The IRS website is an excellent resource for taxpayers who feel confused or overwhelmed by the filing process. There is an IRS webpage about every tax form, deduction, and tax credit available, allowing you to read authoritative and trustworthy information about each.

You can also find detailed IRS filing instructions and resources to help simplify the process, such as links to free electronic filing systems. Use this website as your guide for how to fill out tax forms. 

Use Tax Filing Software Rather Than Filling Out Forms Manually

Tax forms are not always user-friendly. They might use language you are not familiar with, and they require you to make very precise calculations. If you feel overwhelmed looking at tax forms, consider using tax filing software instead.

You can find a wide range of free and low-cost software that walks you through each step of the tax filing process with ease. Rather than requiring you to fill out forms, these programs ask questions in plain English, such as “Do you have one or more children who live with you?”

After you answer all questions, the tax software automatically inputs your answers into the appropriate boxes on the required tax forms and submits them to the IRS and state agencies for you. This makes it easier to understand what information tax forms are asking for, preventing errors. 

Work With a Tax Professional 

Filling out tax forms correctly is important to avoiding fees, penalties, audits, and even criminal charges. If you don’t feel confident filling out these forms accurately, a tax professional can provide valuable assistance. They can help you compile tax documentation, understand your tax liabilities, and handle the entire tax return preparation process for you. 

Levy & Associates, Inc., provides comprehensive tax preparation services along with audit defense, tax resolution support, and more. Contact us today at 800-829-5389 or fill out our contact form to request more information.