Tax Returns

Do your own taxes

Over 50% of tax filers do a simple tax return. If you do not own a business, have rental properties or are self-employed, doing your own taxes using tax software is not complicated. To develop a better understanding of the taxes it is beneficial for you to do your own taxes. Also, you will save money.

In most cases, doing your own tax returns with tax software can be a straight-forward project. This is especially true if you are NOT itemizing and using the standard deduction method. Currently, over 85% of tax filers claim the standard deduction.

When doing taxes, you will need to know your income for the year, including such things as salary, interest, and dividends. This information is provided to you in the following forms: W2, 1099 INT, 1099 DIV.

Free tax filing online sites

There are several online tax filing sites. The example below is for the free H&R Block online site. To qualify for the free online program your tax situation may include:

W-2 income: Income reported on Form W-2 employment

Interest and dividend income: Limited interest and dividend income reported on Form 1099-INT or Form 1099-DIV up to $1,500.

Unemployment income: Unemployment compensation reported on Form 1099-G.

Student loan interest deduction: Deduction for student loan interest paid.

Retirement plan distributions: Taxable qualified retirement plan distributions reported on Form 1099-R.

Itemized deductions, self-employment income, rental income, capital gains/losses, and business income and expenses are excluded from the free version. If you have these items you will then need to use the paid version of the tax program.

H&R Block® Free Tax Filing

Filing your taxes for free online is easy and convenient with H&R Block. If you have a simple tax return, use your W-2 to get started. When you file your taxes free with H&R Block, you’ll get tax guidance and support every step of the way and be able to see your refund estimate in real time.

W2 form information

It is an important document required for filing your taxes. I will explain the different boxes and sections that provide information about your earnings and taxes withheld by your employer

W2 form

This is a W2, The box numbers indicate your wages and taxes already paid
- Box 1 is your wage
- Box 2 is the taxes you already paid.

See the above W2 video for more info on all the boxes.

Sample common 1099 forms

1099-INT form

A sample 1099-INT, not all 1099 will have the same layout but they will all have the same box numbers.
- Box 1 is for regular interest income
- Box 3 for interest earned treasury obligations. Funds in Box 3 are usually excluded from state and local taxes.
- Box 4 will list any federal income tax that was withheld

1099-DIV form

This is a sample 1099-DIV, not all 1099 will have the same layout but they will all have the same box numbers.
- Box 1 is for total ordinary dividends
- Box 2 will be Qualified dividends. Which are are usually taxed at a reduced rate.
- Box 4 will list any federal income tax that was withheld

1099 Consolidate form

Some brokerage firms will place all your 1099's (1099-INT, 1099-DIV, 1099-B, etc) in one statement.

While the forms may look different than the forms above, the box numbers will be the same.

Note: For the free online version of H&R Block only 1099-INT and 1099-DIV information can be used. If you have more than these forms (i.e. 1099-B, then you will need to use the paid version of H&R Block. The 1099-B form shows capital gains and loses from stocks and ETFs investments.

H&R Block Online Free Version
video overview

01:28 Adding your personal info
02:57 Adding your W2 form info
04:35 Adding investment info (1099 forms)
05:12 Adding 1099-INT info
06:00 Adding 1099-DIV info

07:54 Adding IRA contribution
10:59 Starting your state return (PA state as an example)
15:14 Checking your identity before online submission
17:34 Submitting you returns online
18:24 Making a PDF and printing our a return for file keeping

Link to the free H&B Block online tax software

https://www.hrblock.com/online-tax-filing/free-online-tax-filing

Note: If you have a more complicated tax return, you will need to use the paid version of the online program or you can download H&R Block tax software. I found the download version easy to use. In addition, there may be good sales on Black Friday and/or Cyber Monday for the software. https://www.hrblock.com/tax-software/ or Amazon. The H&R Block Deluxe + State software provides Federal and state returns in one program. It permits the use of 1099-B and other more complicated forms.

H&R Block tax software for desktop

If you have investments (1099-B) and other tax forms that go beyond what the free online tax program will accept, then the desktop version of the tax program would be for you.

H&R Block Deluxe and State tax software

This video gives an overview on using the software. Open the video in full screen for best viewing. The video introduces the H&R Block Deluxe + State tax software. Here is a list the the Federal forms and State forms that the program supports.

00:00 Start
03:40 Add your personal information
06:35 Add your wages (W2 form)
09:45 Add your interest (1099-INT form)
10:14 Add your dividends (1099-DIV form)
11:44 Sell stocks and other securities (1099-B form)

16:33 Adding an IRA contribution
20:25 Taking the standard deduction
23:55 Checking for accuracy
26:57 Your filing options ( E-file or print)
29:19 Final - E-sign your return and submit

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