How to file taxes for 2019

You generally have three options when you file your taxes: do it yourself, use a tax preparation software or hire a tax preparer. Whether this is your first year filing taxes or your twentieth year, it can be a confusing and overwhelming process. Here’s a helpful guide on how to file your taxes.

What are my tax filing options?

You have three options when it comes to filing your taxes: print off your tax form and fill it out yourself, use a tax preparation software, or hire a tax preparer. Here are some things to consider when comparing your options:

How to file your taxes online

If your taxes aren’t too complex, you may be able to file your taxes for free through tax return software or directly with the government. More complicated taxes involving multiple deductions or credits may require a fee.

What services can help me file my taxes online?

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Name	Product	Federal returns starting price	State returns starting price	Maximum return guaranteed?	Free options available?	Photo import of W2?	Live chat?
Intuit TurboTax		$60	$50	Yes	Yes	Yes	No	File returns electronically and get taken step by step through the tax-filing process, so that you can receive the fastest refund possible for yourself, and/or your business.	Go to site More Info		loading Fetching your data...
Liberty Tax		$27.96	$29.95	Yes	No	Yes	Yes	Choose from EZ, Basic, Deluxe, and Premium packages to support the simplest or the most complicated of returns; including business and investments.	Go to site More Info		loading Fetching your data...
TaxSlayer		$17	$39	Yes	Yes		Yes	TaxSlayer offers free federal and state filing for simple returns and $0 federal return to service members filing with a military EIN.	More Info		loading Fetching your data...
H&R Block		$49.99	$44.99	Yes	Yes	Yes	Yes	File simply and securely with tax software from H&R Block.	More Info		loading Fetching your data...
FreeTaxUSA		$0	$14.99	Yes	Yes	No	Yes	File federal returns for free and pay $12.95 for state returns with this online tax preparation software.	More Info		loading Fetching your data...
TaxAct		$26.95	$49.95	Yes	Yes	Yes	Yes	TaxAct offers downloadable and online tax preparation services for personal, business and enterprise use	More Info		loading Fetching your data...
eSmart tax		$44.95	$36.95	Yes	Yes	No	Yes	Compare tax preparation plans for this software backed by Liberty Tax Service.	More Info		loading Fetching your data...
Jackson Hewitt		$49.99	$44.95	Yes	Yes	No	Yes	File taxes online or in-person for a no-fee refund advance loan. But watch out for high filing fees	More Info		loading Fetching your data...

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Free tax help options

Filing your taxes with a professional doesn’t have to be expensive. Here are five free tax help options worth looking into:

1. Basic tax preparation software plans. Many tax preparation software companies offer basic plans that let you file a return for free. But usually, this option only works if you have a simple tax situation with W-2 income, no dependents and no deductions.
2. E-file with Free File. If you make less than $69,000, you may be able to file your return for free using a tax preparation software. Visit the IRS website for a list of software companies that let you file for free.
3. Volunteer Income Tax Assistance (VITA). This program offers free tax help to low-to-moderate-income taxpayers and members of the military. To see if you qualify, go to IRS’ free tax prep form. Enter your zip code to find a VITA office near you.
4. Tax Counseling for the Elderly. If you’re at least 50 years old and have a low-to-moderate-income, you can visit nearly 5,000 Tax-Aide locations nationwide for free, individualized tax preparation. Visit the AARP’s website to find a location near you.
5. MilTax. Military members and their families can e-file their taxes for free through MilTax.

Should I DIY or get professional help?

Ultimately, your best route depends on how you’re able to answer three key questions:

• How complicated is your tax return? If you have no dependents and deductions, you may be able to file your own return. But if you’ve had a major life event, such as having a baby or buying a house, a tax software may be a better option. If you own many investment assets, an accountant may be what you need.
• How confident are you with filing yourself? Tax regulations are always changing, and the IRS regularly audits returns for compliance. A reputable online tax service can make sure you aren’t claiming anything you’re not eligible for. And they may even step in if the IRS does come a-knocking.
• What’s your budget for fees? DIYing your taxes may be your cheapest option, but it’s also the most time-consuming and there’s more room for error. Tax preparation fees can vary from low flat rates to those based on a tiered scale, running up to $100 or more. But a tax preparer can make the fee worth it by saving you more on your tax return.

If you’re looking to file your own taxes but want the benefits of professional help, consider a tax preparation software. It gives you the best of both worlds and most platforms come with a Maximum Refund Guarantee.

Which type of return is best for me?

You should know based on your income and circumstances which category you fall into. But here’s a breakdown of the types of returns you may read about:

• Individual tax returns. A common return for people who are employed and earn an income, including those who are self-employed or contractors.
• Partnership tax returns. Returns for businesses in a partnership structure.
• Company tax returns. Returns for private companies that employ more than two people.
• Trust tax returns. Returns typically submitted by trustees to satisfy different tax regulations and rates.
• Corporate tax returns. Returns filed by listed companies on a stock exchange and audited by a third party.

If you’re filing on behalf of a business or company, consider seeking professional advice to avoid running into trouble with the IRS.

Forms you could file

There used to be three tax forms you could file as an individual: 1040EZ, 1040A and 1040. But now there are just two: Form 1040 and 1040-SR for seniors. Depending on your tax situation, you may need to use one of these popular tax forms when submitting your tax form:

• W-2

  Your employer sends you a W-2 in January or February of each year. This tax form lists out your total earned income, federal and state tax withholdings, retirement contributions and more. Hang on to your W-2 because you’ll need information when filing your taxes.

• Form 1098

  You should receive Form 1098 in the mail if you paid at least $600 in mortgage interest, made any tuition payments or paid interest on your student loans.

• Form 1099

  There are many different types of 1099s. For example, you may receive 1099-MISC if you’re a contract worker, 1099-DIV if you received any dividends from your investments, 1099-INT if you earned at least $10 in interest from a bank or credit union or Form 1099-R if you took any retirement distributions.

• Schedule A

  If you’re itemizing your taxes this year, you’ll use Schedule A to add up all your deductions for medical expenses, charitable contributions, mortgage interest, property taxes and more. Once you fill it out, you’ll submit it to the IRS along with Form 1040.

• Schedule B

  If you received more than $1,500 in taxable interest or dividends this year, you’ll add it all up on Schedule B and send it in with Form 1040.

• Schedule C

  Freelancers, contract workers and other gig workers are required to report their profits and losses on Schedule C. This is also the form you use to claim any business-related expenses you hope to deduct from your taxes.

• Schedule D

  If you traded stocks, bonds, ETFs or any other securities, you’ll use Schedule D to report your capital gains and losses for the year. You should receive 1099s in the mail to help you calculate these numbers.

How much will I pay in taxes?

Your taxes generally depend on how much you earn and how much you paid in taxes throughout the year, either deducted from your paycheck or paid quarterly, if you’re an independent contractor.

Federal income tax brackets for 2019-2020

Wondering how federal income tax brackets work? The US uses a progressive tax system, where the more you make, the more you pay. But how much you pay depends on your tax filing status.

See your federal income tax brackets for 2019-2020

What deductions can I claim?

Deductions and credits can chip away at how much the government gets to keep — and how much you’re able to keep in your own pocket. Let the $2,869 average individual tax refund for 2019 inspire you to suss out your qualified deductions.

Tax deductions guide: 2019 tax year

Deductions are expenses that you subtract from your total taxable income, effectively reducing the overall amount of tax you owe the government.The US uses a tiered tax bracket system, so the more you earn, the more you pay — deductions can help take the edge off.

See a list of tax deductions for 2019

Online tax prep software

Ready to file your taxes? Compare tax preparation software and decide which option is right for you.

Compare tax preparation software

When do I need to file my tax return?

The standard deadline for filing your tax return is usually April 15. But the IRS has pushed this deadline back to July 15 for taxes filed in 2020 due to the coronavirus pandemic.

If you need more time to prepare your return, you can request an extension by filling out Form 4868 by July 15. This gives you until October 15 to file your return, but not extra time to pay your taxes. If you end up owing taxes and pay past July 15, you might be subject to late penalty fees:

• A late payment fee equal to 0.5% a month, up to a maximum 25% of the amount owed.
• A late filing fee equal to 5% of the taxes you owed each month, up to a maximum 25%.
• 5% interest on any unpaid taxes until your bill is paid in full.

When should I expect my tax refund?

If you file taxes online, expect to receive your refund within 21 days. If you file by mail, it could take as long as six weeks.

You can track the status of your refund using the Where’s My Refund tool on the IRS website.

Should I get a tax refund?

Everyone wants a giant refund come tax time, but it’s not as glamorous as you think. A big tax refund means you paid too much money to the IRS—money you could’ve been using each month to pay bills and cover unexpected expenses. Likewise, a big tax bill means you didn’t pay nearly enough. Ideally, you should aim to break even each year. This is a goldilocks tax situation because it means you paid just the right amount to the IRS.

If you want to avoid paying too much or too little taxes, adjust your W-4. This form tells your employer how much federal and state tax to withhold from each paycheck. If you’re currently facing a large tax bill, increase your W-4 withholdings. If you’re getting a giant refund, decrease your W-4 withholdings.

You can adjust your W-4 at any time with your employer, but it’s better to do it as soon as possible. If you need help calculating how much you should withhold from each paycheck, use the IRS tax withholding estimator.

Your tax questions answered

• How do taxes work?

  If you’re a paid employee with a regular paycheck, your employer withholds taxes on your earnings and sends them to the federal and state governments. But oftentimes you end up overpaying or underpaying in taxes by the time you account for tax deductions, credits and other sources of income. Filing your tax return helps you figure out if you paid too much or too little.

• Who has to file a tax return?

  If you’re at least 18 years old and can’t be claimed as a dependent on someone else’s tax return, then you can file a return each year. But whether you’re required to file taxes depends on your age, income type and filing status. Generally, you don’t have to file taxes if your gross income is less than your standard deduction, but this only applies if you have regular income. If you’re self-employed, you have to file a return no matter what.

  Even if you’re not required to file a return, you may want to do it anyway to take advantage of certain tax credits.

• What happens if I don’t file a tax return?

  You’re subject to penalties that include fees and even jail time. Your employer sends a copy of your payment information to the IRS too. So if you fail to file or pay, the IRS can calculate what you owe and start collecting interest on it.

  If you’re worried about your tax situation, contact a tax professional to learn options specific to your circumstances.

• Is it safe to submit my tax return online?

  Yes. Registered tax providers and the IRS take security precautions to ensure that your financial information is handled safely. If you still prefer to do things face to face, consider a service like H&R Block, which offers branches for paperwork drop-off. You can also print and mail in your own Form 1040.

• Can I claim a tax deduction on child care?

  Yes, in many cases. You may qualify for a tax credit of up to 35% for qualifying care for a child under the age of 13 or a dependent with a disability. Credits tend to top out at $3,000 for one child or up to $6,000 for two or more.

• How do I file an extension?

  File for a six-month extension using IRS Form 4868. Popular tax return software often offer extensions as part of their services.

• How long should I keep my tax records?

  It depends on your period of limitation. This is the amount of time you have to amend your tax return. For income taxes, you should keep your records for as little as three years and as long as forever.