You Can’t Make Heads or Tails Out of the New Tax Forms: A Simple Guide to Understanding and Filing Your Taxes

For many people, tax season brings anxiety and confusion. Between new tax laws, forms, and deductions, it can feel like you’re navigating a maze of paperwork and legal jargon. If you’re struggling to make sense of the new tax forms and changes in tax laws, you’re not alone.

But don’t worry—taxes don’t have to be terrifying. With the right information, tools, and a step-by-step approach, you can demystify the process and ensure your taxes are filed correctly. Whether you’re filing for the first time, dealing with changes in your financial situation, or simply confused about the new forms, this guide will help you understand what’s required and how to make the process easier.

Step 1: Understand the Basics of Tax Filing

At its core, filing your taxes is about reporting your income and deductions to the Internal Revenue Service (IRS), so they can calculate your tax liability (how much you owe) or determine if you’re due for a refund.

Here’s the process in simple terms:

1. Collect documents: Your W-2, 1099s, receipts, etc.
2. Fill out the forms: Most people use Form 1040 to file, but other forms may apply.
3. Submit your tax return: Send it to the IRS by April 15 (or the nearest business day).

Tax laws change annually, so it’s important to stay up to date on new forms and credits that may impact you.

Step 2: Know the Main Forms You’ll Use

The IRS offers a range of forms, but the Form 1040 is the standard tax form used by most individuals to file. Depending on your situation, you might need to attach additional forms and schedules. Here’s a rundown:

A. Form 1040

The most common form for individual taxpayers. It reports your income, deductions, and tax credits, and it determines your tax liability.

B. Form 1040-SR

This is for seniors (age 65 and older). It’s similar to Form 1040 but with larger print and a few simplifications for those in retirement.

C. Form 1040-NR

For non-resident aliens who earn U.S. income, they use this form instead of the regular 1040.

D. Schedules

These are additional forms that are attached to your Form 1040 to provide more detailed information about specific tax topics. Common schedules include:

• Schedule A (Itemized Deductions)
• Schedule B (Interest and Ordinary Dividends)
• Schedule C (Profit or Loss from Business)
• Schedule D (Capital Gains and Losses)
• Schedule E (Supplemental Income and Loss)

Most people only need a Form 1040 and possibly Schedule A (if they are itemizing deductions). The IRS website provides detailed instructions for filling out each form.

Step 3: Gather Your Tax Documents

To file your taxes correctly, you’ll need to collect your income and deduction documents. These documents help you report your earnings and claim your credits or deductions.

Key documents include:

• W-2 forms: For employees, showing your wages and taxes withheld
• 1099 forms: For freelancers, contractors, and other self-employed individuals
• 1098 forms: For reporting mortgage interest, student loan interest, etc.
• Receipts for deductible expenses: Medical costs, charitable donations, and other deductible expenses
• Bank statements: For reporting interest income, dividends, etc.

If you’re unsure what documents you need, review your previous year’s tax return as a guide.

Step 4: Review the Tax Law Changes for the Year

Each year, Congress passes tax law changes that could impact your filing. For example:

• Standard deduction increases: In 2023, the standard deduction was raised to $27,700 for single filers and $55,400 for married couples filing jointly.
• Child tax credit: The child tax credit may increase or change each year, so you should verify the amount you can claim.
• Retirement account contributions: If you contribute to a retirement account (like an IRA or 401(k)), there may be new limits or eligibility requirements.
• Health insurance deductions: Some health insurance premiums or medical costs are deductible.

Check the IRS website or consult a tax professional to ensure you're aware of any new deductions, credits, or changes that apply to you.

Step 5: Decide Whether to Itemize or Take the Standard Deduction

You have two options when it comes to claiming deductions:

1. Standard deduction: This is the easiest route, where you deduct a set amount from your taxable income.
2. Itemized deductions: If your deductible expenses (like mortgage interest, medical expenses, and charitable contributions) are more than the standard deduction, you can itemize them on Schedule A.

For many people, the standard deduction is the better option, especially since it has been increased in recent years. However, if you had significant expenses, it might make sense to itemize.

Step 6: Claim Any Available Tax Credits

Tax credits directly reduce the amount of tax you owe. Some common tax credits include:

• Child tax credit: For qualifying children under the age of 17
• Earned income tax credit (EITC): For low to moderate-income earners
• American opportunity tax credit: For education expenses
• Lifetime learning credit: For continuing education
• Energy-efficient home credits: For making certain home energy improvements

These credits can significantly reduce your tax bill or even result in a refund. Check the IRS guidelines to see if you qualify.

Step 7: Double-Check for Accuracy

Once you’ve filled out your forms, it’s time to double-check everything. Small errors can lead to delays in processing or trigger audits.

• Verify personal information: Social Security numbers, addresses, and bank account numbers should all be accurate.
• Ensure math is correct: Even with software, mistakes can happen, so double-check all calculations.
• Review your deductions and credits: Make sure you’ve claimed everything you’re entitled to.

Many people use tax software to automatically calculate deductions and credits, but manual checks are still important.

Step 8: File Your Tax Return

Once your forms are complete and accurate, it’s time to file your return. There are a few ways to file:

• File online: Using tax software or the IRS e-file system is the quickest and easiest way to file. Many tax services allow free filing for simple returns.
• Mail your return: If you prefer to file by paper, make sure to send it to the correct IRS address. You can find the address on the IRS website, or on the instructions for your form.

Make sure to file by the April 15 deadline to avoid penalties and interest for late filing. If you can’t file on time, request an extension, but be aware that this only extends the time to file—not to pay.

Step 9: Pay Any Taxes Owed

If you owe taxes, there are several ways to pay:

• Direct debit or credit card via the IRS payment portal
• Installment plans if you need more time to pay
• Check or money order

Paying your taxes on time is critical to avoiding additional fees or interest. If you can’t pay in full, the IRS offers payment plans for taxpayers who need extra time.

Step 10: Keep Your Records

After filing, keep a copy of your tax return and all supporting documents for at least three years. You might need them for:

• Future tax filings
• Audits or disputes
• Applying for loans, mortgages, or other financial assistance

Store your records in a safe place, either digitally or physically, so they’re easy to access when needed.

Final Thoughts

Filing taxes may feel like a daunting task, but it’s an important part of ensuring your financial health and stability. By understanding the forms, gathering your documents, and utilizing available resources, you can make the process smoother and more manageable.

Remember, if you’re ever in doubt, you don’t have to navigate this alone. Consider working with a tax professional or using tax software to help guide you through the filing process. By staying organized, reviewing your forms carefully, and filing on time, you’ll be well on your way to successfully completing your taxes.

Don’t Be Afraid To Get Help

If you’re facing legal questions, safety concerns, or emotional turmoil due to any of the situations described above—especially domestic abuse—don’t try to handle it alone. Professional guidance can make all the difference in ensuring your rights are protected and your next steps are clear. Whether you need legal advice, help with documentation, or assistance navigating local resources, speaking to an expert can bring peace of mind. Click here to get connected with professional support tailored to your situation.