Where to File Taxes in 2022: A Guide for New US Residents.
If you’re new to the United States, you have a lot to deal with, from housing and employment to how to get a Social Security card . It can be very overwhelming. In addition to all this, you may be wondering: where and how do I declare my taxes ?
The first thing you need to know is that as a temporary or permanent resident of the United States, you are subject to the United States federal tax code, just like a citizen. In most states, you are also subject to state income tax.
That means you have to file taxes if you are an immigrant , as long as you earned enough money the previous year. (As of tax year 2021, the threshold was $12,550 for most single filers or $25,100 for most married filing jointly.)
Fortunately, in addition to filing directly with the IRS, you have many easy-to-use third-party solutions that can help you with the filing process, and many of them have free versions. With these tools, you can file all your taxes online.
In this guide, we’ll talk about five popular options for filing your taxes.
Although there are many third-party options, you can file your taxes directly with the IRS with paper Form 1040 (for filing an annual income tax return). However, it is the slowest, so you will have to wait longer to receive any refund that is due to you.
If, like most Americans, you prefer to file your taxes online, you have two free options to do so.
Fillable forms (for any income) directly with the IRS. You must fill out the forms on your own, with limited guidance and calculations.
Guided tax preparation through a public-private partnership. You must choose an offer from a third party. If your adjusted gross income (or AGI) is $73,000 or less, you qualify and can use the system to file a free federal income tax return.
If you don’t qualify for free third-party filing and don’t want to fill out the free IRS forms, you can pay to use any of the programs we describe below.
TurboTax is one of the most popular business options for filing taxes in the United States.
Like most tax preparation companies, TurboTax gives you the option to file with or without professional help. You will have the option to print and mail your forms, or you can apply online for a fee. If you qualify, you can file federal returns online for free.
TurboTax offers three options :
Prepare your own taxes with the system’s step-by-step process and help text
Use live expert help while you present
Let TurboTax prepare your taxes for you
To prepare your own taxes, you will have to pay between $0 and $89, depending on your needs. You’ll get text guidance as you fill out your forms, but there’s no live help.
If you want the help of an expert, you will have to pay between $0 and $169. You’ll get on-demand access to experts when you have questions or problems, and TurboTax will provide a full year of tax advice after you file.
The last option, and the easiest of all, is to have TurboTax file for you. It costs up to $359. Yes, it’s the most expensive option, but it might be your best bet if you’re busy or overwhelmed.
Tax Slayer is another popular option for first-time tax filers. It even offers a free app. Tax Slayer offers the following options:
Simple and free ($0 if you qualify)
Classic (most popular, $17.95)
Self Employed ($47.95)
The Simple and free option is for you if your tax situation is simple. If you feel confident collecting your tax forms and following the on-screen prompts, this option might be for you.
The classic option gives you advice when you get stuck. It includes deductions and credits and provides you with all the necessary forms to maximize your refund.
The premium option takes everything to the next level, offering help from tax professionals. You’ll get immediate access to support when you need it.
Finally, the freelancer option is for those who are self-employed.
Tax Act is another service for filing taxes. Like Tax Slayer, it offers four options:
Free (if you qualify)
Deluxe (most popular, $24.95)
Self Employed ($64.95)
The free version gives you access to basic features, including the ability to report unemployment income and apply for a child tax credit.
The premier option has all the features of the free option, but adds the ability to claim additional deductions and credits, such as dependent care and mortgage interest.
The premier version has additional options, which allow you to report more types of income, such as a rental property or the sale of a home.
Finally, the self-employed version gives you everything you need to file your personal and business taxes, including a deduction maximize and year-round planning resources.
H&R Block is a big fish on the tax return. Like other tax services, it offers a variety of federal tax filing packages:
Free (if you qualify)
Self Employed ($94.95)
The free service is for those with simple, straightforward tax situations who qualify.
The Deluxe package adds support for homeowners, day care expenses, and student loans.
The Premier package allows you to report on your investments, home sales and rental properties.
The Self Employed Package is for freelancers, contractors, and business owners.
All packages offer a feature called “Xpert Assist” until March 31, 2022.
H&R Block also allows you to have a professional tax file for yourself with its “Full Service Xpert” offer. Like the self-service options, full service has four tiers, starting at $99.95 for simple federal returns and $279.95 for the self-employed.
Although filing your taxes can be overwhelming, it doesn’t have to be difficult. The tax solutions above offer helpful tools to guide you through the process and make filing taxes easier.