Become Familiar with Tax Forms
Part of the reason taxes are so stressful is that even the basic tax forms feel foreign to us. Knowing that the tax system is intentionally set up to be complex is also quite infuriating.
In fact, companies that sell tax prep programs (such as Intuit (Turbo Tax) and H&R Block) lobby every year to keep taxes complicated. They also spend a lot on advertising, while the IRS actually promotes access to free tax filing programs.
Whether you ultimately choose to prepare your own taxes (with a free or paid tax program) or hire a professional tax preparer, becoming familiar with the basic forms will help alleviate unnecessary anxiety and build more financial awareness and confidence.
Navigating Basic Tax Forms like a Pro
Let’s start with how you earn your income (employee vs. self-employed). Each of the following diagrams provide a simple walk-through from the start of a job to annual tax filing.
For more information, search for the form and instructions here. The IRS website is actually a great resource!
Basic Expense Tax Forms
Now let’s gain a basic understanding of what expenses are deductible for personal taxes and for small business owners. Again, I highly recommend going straight to “source documents”on the IRS website.
Schedule A (Form 1040 Line 12): Personal Deductions: www.irs.gov/pub/irs-pdf/i1040sca.pdf
Schedule C (Part II): Business Expenses: www.irs.gov/pub/irs-pdf/p535.pdf
An Invitation
Whether you prepare your tax returns or not, take this opportunity to become familiar with tax forms that are applicable to you. This simple exercise will bring a huge boost to your confidence, so the next time you see one of these forms, you think “I know this one!”
Join the Community Discussion
Please sure your experience of engaging directly with the tax forms and other IRS source documents.
Reference
Recommended Resources
www.irs.gov/filing/free-file-do-your-federal-taxes-for-free
www.irs.gov/forms-instructions
Copyright © 2021 Jen Lightwood