With more than 60,000 pages of tax code, preparing your own taxes can seem a bit daunting. But, by breaking the tax return into five simple steps, a dreaded task gets easier.

Step 1: Know your filing status
Should you file married? Or, head of household? This may seem like the easiest part of the tax return, but there are some traps for the unwary. Keep in mind:

If you were married as of Dec. 31, you’re considered married all year.

Generally, head of household is a filing status for single parents.

Step 2: Report all income
Everything you earn during the year, including gambling winnings, is taxable and should be reported as income. You’re responsible for reporting income on your tax return even if you don’t get a form reporting it for you.

Remember, by reporting your income correctly now, you can help avoid a letter from the IRS later.

Step 3: Factor your adjustments
Reduce the amount of taxes owed by factoring in deductions. Student loan interest, certain moving expenses, IRA deposits, and tuition and fees up to $4,000 can all be deducted without itemizing.

For those taxpayers who do itemize, don’t forget to deduct:

Charitable contributions: You must have receipts for even the smallest amounts.

Medical expenses: Costs must be more than 7.5 percent of your income in order to claim. Mileage for medical visits can be deducted at a rate of 20 cents per mile.

Personal property taxes

Work expenses: Uniforms, union dues, professional publications and fees can all be deducted if they total more than 2 percent of your income.

Investment expenses: Tax preparation costs, net losses on investment activity. These also must total more than 2 percent of income.

Step 4: Take credit
While a deduction reduces the amount of income subject to tax, credits lower your tax bill dollar for dollar. Taxpayers can further decrease their tax liability by claiming these common credits:

Child Tax Credit: Reduce your tax owed by $1,000 if you have a child under the age of 17.

Child Care Credit: If you pay child care fees while working or going to school, you’re eligible for a credit of 20 percent to 35 percent of the amount paid up to $3,000 for one child, or $6,000 for two or more kids.

Higher Education Credits: Paying college tuition may make you eligible for a tax benefit up to $1,500 through the Hope Credit, and a savings of up to $2,000 through the Lifetime Learning Credit.

Step 5: Review
Once you’ve completed your return, help speed the delivery of your refund and prevent a letter from the IRS by:

Verifying all names and Social Security numbers are correct.
Ensuring all entries match your records.
Signing your return. Both spouses should sign if you’re married filing jointly.
E-filing. It speeds your refund and lowers the risk of errors.
For more information about smart tax filing, contact your tax and financial professional.

Susan Weber, CPA is the H&R Block Office Manager in North Highlands. You can reach her by calling 916-331-8168.