Can I handle my own taxes this year?

I’m thinking of doing my taxes myself instead of paying someone $350 this year. My situation seems pretty straightforward. I’m not a business owner or landlord. Here’s what I have:

  1. I own a home (5.2% interest rate, $3,600 monthly mortgage, $460k balance).

  2. I’m a W2 employee with a full-time job.

  3. I have two kids: one is 16 and the other is 21, a full-time college student living on campus with a part-time job. The 21-year-old is an out-of-state student.

That’s it. Should I try filing on my own or get help from a professional?

Try freetaxusa.com. It’s free for federal and less than $20 for state. Just compare the results with last year’s return to make sure you didn’t miss anything.

Rey said:
Try freetaxusa.com. It’s free for federal and less than $20 for state. Just compare the results with last year’s return to make sure you didn’t miss anything.

Cash App Taxes is another option. It’s free for federal and state.

@Landry
Cash App is great for single-state returns. If you moved between states during the year, FreeTaxUSA might work better. I used it in a similar situation.

Alden said:
@Landry
Cash App is great for single-state returns. If you moved between states during the year, FreeTaxUSA might work better. I used it in a similar situation.

I’ve used FreeTaxUSA for years and had no issues. My refund went down this year because my income doubled.

@Toby
Your refund amount isn’t directly tied to income. If your refund went down, it’s likely because of different withholdings.

Sayer said:
@Toby
Your refund amount isn’t directly tied to income. If your refund went down, it’s likely because of different withholdings.

That makes sense now. I earned $18k last year, but this year it was $37k. The smaller refund confused me.

@Toby
Your higher income probably came with more taxes withheld. There’s a line on the form that shows the amount withheld.

@Toby
Refunds are basically an interest-free loan to the government. I aim to owe a little every year to keep my money in my own account.

Raleigh said:
@Toby
Refunds are basically an interest-free loan to the government. I aim to owe a little every year to keep my money in my own account.

For someone with a tight budget, tax refunds can act as a forced savings plan.

Raleigh said:
@Toby
Refunds are basically an interest-free loan to the government. I aim to owe a little every year to keep my money in my own account.

I get that, but I still prefer a refund. It feels more manageable for me.

Raleigh said:
@Toby
Refunds are basically an interest-free loan to the government. I aim to owe a little every year to keep my money in my own account.

As long as your refund or balance due is within $1,000, you’re good.

Rey said:
Try freetaxusa.com. It’s free for federal and less than $20 for state. Just compare the results with last year’s return to make sure you didn’t miss anything.

I’d recommend FreeTaxUSA too. It’s my favorite. This year, I had to switch to H&R Block, but it wasn’t bad. Only cost me $30.

If you can manage to get the full American Opportunity Tax Credit and don’t have any other complications, you might be able to handle it yourself. Be careful with timing—file your return before your 21-year-old files theirs. If they accidentally claim themselves, you’ll lose the opportunity to claim the credit unless they amend their return, which can get messy.

@Sia
I live in California.

@Sia
Can I claim my 20-year-old as a dependent even if they file their own taxes?

Tal said:
@Sia
Can I claim my 20-year-old as a dependent even if they file their own taxes?

If they’re a college student, yes, you can claim them. If they’re not in school and make more than $5,050, you can’t. If they earn less, and you cover more than half their expenses, you can claim them. Just make sure they check the box on their return saying someone else is claiming them.

@Sia
Thanks! My child is in college, so that clears it up.

I’ve never paid for tax prep. I use Cash App Taxes—it’s free for federal and state. Takes me about 15 minutes to file.

Tait said:
I’ve never paid for tax prep. I use Cash App Taxes—it’s free for federal and state. Takes me about 15 minutes to file.

Same here. I’ve used it for years with no problems.