Learn how to prepare your taxes.

You have to pay taxes, so you may as well get used to it. Taxes are due every April, but for some reason, many people put it off each year.

Filing taxes becomes a habit if you follow a few steps:

1. Think about taxes through the year. Organize records, receipts and financial documentation. Keep your files for taxes updated and separate from other files so they are easy to access.
2. Prepare your documentation. Gather your forms including: W-2 and/or 1099 forms which document your income and are mailed to you by the end of January; 1098-E, which documents how much student loan interest you have paid; and the 1098-T, which comes from your school and documents tuition payments.
3. Pay or file an extension by the tax due date. As the deadline comes near, consider whether you need to file an extension. This does not let you off the hook. You still need to file forms and pay the estimated taxes. Interest and penalties can be applied if you fail to pay your estimated taxes on time, since this is just an extension.
4. File your tax records. After you complete your taxes, file your tax records away and keep them for seven years. Though the IRS generally does not go back more than three years, your taxes can be audited for up to seven years.

The IRS offers an Interactive Tax Assistant Links to an external site. app that can help you work through filing taxes, taking deductions and credits, filing exemptions and so on.

 

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