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- 1). Create a dedicated space for all of your tax paperwork. Many tax filers find it helpful to use a large envelope to collect all of the 1099 forms, W2 forms and other miscellaneous paperwork. That envelope can also be used to house receipts and other documentation that you accumulate throughout the year.
- 2). Gather all of your tax paperwork and sort it into piles according to the type of form. If you have more than one bank account or more than one type of investment, you will probably be receiving a 1099 form from each of those firms. Sorting all of your forms will make them easier to manage.
- 3). Pick up a copy of the appropriate tax form. Many libraries stock tax forms, and you can find printable forms on the Internal Revenue Service (IRS) website. Look at last year's return to determine which form you are likely to need. If you were able to file the simple one-page 1040-EZ last year and not much has changed in the past year, you probably will be able to file the same form again. The same is true of the other tax forms, including the standard 1040 form and the slightly easier 1040A form.
- 4). Consider using a tax preparation software package to make filing your taxes easier. These software packages are designed to walk you through the process of reconciling each piece of income to the appropriate line on the form. Many of these packages are even free, including the free version of Turbo Tax and Tax Act. The cost comes when you print and file your return.
- 5). Enter each type of income you have into the tax preparation software package. Double-check after each step to make sure the figures you entered were accurate before moving to the next section. For instance, the tax software will ask you about your interest income, so be sure that you check that you have included all of the 1099 forms from your bank accounts.
- 6). Print a copy of your tax return, even if you plan to file your return electronically. The printed return will provide you with valuable backup in case of a problem down the line. You can also use the printed return to double-check your figures and verify that all of your income has been reported.
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