How To File State Taxes

After you're finished filing with the Internal Revenue Service, you will still need to know how to file state taxes. There are three basic ways to fulfill your tax obligations. You can file by mail, e-file, or hire a Certified Public Accountant (CPA) to do it for you. This article will describe each of these methods and help you file state taxes using the way that is best for you.

To file state taxes, you will need:

• All of last year's tax statements (all of your W-2's, 1099's, etc.)

• A computer with internet access capability.

• A CPA or tax filing service.

• A bank account for direct deposit, if you are owed a refund.

1. File state taxes the old fashioned way. You can typically find state tax forms and instructions for filing taxes at the Post Office branch nearest you. Most taxpayers find this to be the most cumbersome and intimidating method, but some still prefer it, while others have no choice but to use this method, unless they want to hire an accountant.

2. File your taxes online. If you have already filed with the IRS, you can go right back to the IRS website to find where you need to go to file state taxes as well. Your particular state most likely has its own online filing process. This method is the fastest path to getting your money back if you are owed a tax refund.

3. Hire an accountant or tax filing service. Some tax filers, such as businesses with employees, have overwhelmingly complex tax issues that cannot be handled online. In addition, filing traditionally would be time consuming and prone to mistakes, raising the risk of a costly tax audit. This is where a CPA or a tax preparation company can help. It is the most expensive method, but for even the smallest of businesses, these services can be absolutely vital.