Tax preparation software: If you want a bit more guidance, you can pay a fee to use these online tools, which are available through several providers.
IRS online forms: If your adjusted gross income is higher than that limit, the IRS has electronic versions of the paper forms that will do the math for you, but they offer only basic guidance and won’t give you the same kind of help figuring out which deductions or credits you might be able to take.
“Free File”: If your adjusted gross income-this is a specific tax term which basically means your income minus certain tax deductions-is less than a certain limit, the IRS has free tax prep software that can make preparing your tax return easier with features that can help you figure out any deductions or credits you might be able to take.
Learn about each so you can make the right choice for you: There are several options for preparing and filing your tax return. If you think you may qualify for additional credits or deductions, check the IRS website.
Freelance expenses. If you are self-employed, you may be able to claim deductions for work-related expenses such as industry subscriptions and office supplies.
Donating to your alma mater or a favorite charity? Generally, you can deduct qualified charitable donations if you itemize your taxes.
Student loan interest. You can deduct up to $2,500 in interest payments, depending on your modified adjusted gross income.
However, these numbers are subject to change in future tax years. If you are married and are filing jointly, you may be eligible if your adjusted gross income is $73,000 or less. For the 2023 tax year, if your filing status is single, you may be eligible if your adjusted gross income is $36,500 or less. The amount of the credit depends on your filing status and adjusted gross income.
Saver’s credit. If you are not a full-time student and are not being claimed as a dependent, you may be eligible for a tax credit if you contribute to a retirement plan.
Getting a sense of which credits and deductions you may be eligible for can help you pull together the proper documentation.
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