How to File Taxes Online

By Nicki Howell

  • Overview

    Many individuals are interested in filing their taxes online. And companies that sell software will often process your federal tax return for free and charge a nominal fee for your state return. Plus, these sites offer deduction tools to help you maximize your refund. And if the government owes you a tax refund, you can often receive this through automatic deposit.

    • Step 1

      Gather all of the necessary information. To file your taxes online, you will need your W2s and records of any other income earned. If you own a home, you will also need property tax statements and mortgage interest statements.

    • Step 2

      File your return directly with the IRS. This process is free and you can file online beginning Jan. 16.

    • Step 3

      File your return with H&R Block online. It can process your federal and state returns. And your federal return is often free if you earn less then $54,000 and are under the age of 50.

    • Step 4

      Consider filing your return with TurboTax. It will file your federal return for free and you can pay $29.99 for your state return. You can also upgrade your service if you want to file business taxes with your personal return.

    • Step 5

      File taxes online with the TaxAct software. Your federal return is free and it charges $13.95 to process a state return. This software also includes tax deduction tools that will help you maximize your deductions.
    • Skill: Moderate
    • Tip: Check with your state about filing your state return online. Every state is different, but many are now offering this service. Filling online with your state could save you $20 to $30.
    • Warning:
    • Keep your tax returns for at least seven years. Also make sure to keep any supporting documentation, such as property tax statements or donation receipts. This will protect you in case of an IRS audit.

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