Ready or not, Tax Day will soon be upon us — April 15, 2026 to be exact. Follow these four steps to simplify the process of filing your taxes.
Read more: Be ready for tax season with savings buckets in an Ally Bank Savings Account
Step 1. Gather all necessary documents
The first step is to create some sort of system to collect and organize all your tax documents, including:
Personal information: Make sure you know your Social Security number and any other identification numbers.
Proof of income documents: Have your W-2, 1099 series (if you have other sources of income), dividend and unemployment information handy.
Records of expenses and deductions: Gather any expense records of charitable donations, mortgage interest and medical costs to itemize your deductions.
For federal taxes, check out this tax checklist from the IRS, which lists every document and piece of information you will likely need to file.
If you file on a calendar year schedule, you must do so by April 15. You can also extend the time to file a tax return to October 15 if you file an extension by April 15 and pay any expected taxes due.
Step 2. Decide how to file your tax return
You have a few options when it comes to filing your return:
Do it yourself: You can use paper forms or online tax software for a hands-on approach.
Hire a tax professional: If your tax situation is particularly complicated, consider working with a professional. For example, if you’re self-employed and have a 1099, consider working with a tax professional to ensure compliance, maximize deductions and avoid costly mistakes and penalties.
Free tax service: If you’d like to file online for free, IRS Free File allows qualified taxpayers to prepare and file federal income tax returns using guided tax preparation software.
Step 3: Prepare your tax return
Once you have the necessary paperwork and settle on a tax-filing method, it’s time to prepare your tax return.
Be aware of tax filing deadlines
If you file on a calendar year schedule, you must do so by April 15 . As long as your return envelope is addressed, postmarked and deposited in the mail (or the submit button clicked online) by the due date, it is considered on time. If you need more time, you can file for an extension but you must pay any expected taxes due. Use form 4868 for an automatic six-month extension to October 15.
Learn which credits and deductions you can take
To reduce your tax burden, take advantage of credits and deductions. A tax professional or tax filing software can help determine which credits and deductions you may be eligible for.
Make note of any changes to tax regulations
Tax regulations can change year to year. Take a few minutes to make yourself aware of any that may affect you and your refund (or bill) for this tax year. Be sure to note any new filing requirements, which can be found on the IRS website.
Determine your filing status
It’s a good idea to reflect on the previous year and make a list of any significant life events that might affect how you file. Big milestones like buying a house, getting married, adding or losing dependents or a new job should be noted since they may affect your filing status and your eligibility for certain deductions or credits.
Step 4: File your tax return
Once your return is complete, you will know if you will be receiving a tax refund or if you owe taxes. If you anticipate a refund, spend some time preparing how you will make the most of the extra money. Ally Bank’s buckets and boosters can be helpful tools in maximizing your finances.
If you owe taxes, you should pay the amount owed in full when you file your tax return or extension. Otherwise, you will receive a bill, which begins the collection process and could cause you to accrue a penalty and interest charges.
What to do after filing your tax return
Once you’ve filed your return:
Track your refund using the “Where’s My Refund?” tool (most e-filed refunds arrive within 21 days of filing)
Resubmit a rejected return if necessary
Store a copy of your filed return
File your tax return with confidence
It’s understandable to get a little stressed out during tax season. The paperwork, process and precision required can be overwhelming. But with a little bit of preparation and the right tools, you can stress a little less about filing your tax return and stride through the season.
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