You've been working hard all year, and now comes the moment you've been dreading: doing your taxes. Fear not, you may have reason to celebrate. If you filled out your W-4 federal forms correctly, it's pretty likely that if you put forth the small amount of effort required to file your taxes, you either owe the governement a small amount, or you'll get a check from either the state or the federal government: possibly even from both!

Why is this the case? As we learned in the lesson on payroll taxes, the government takes money out from each paycheck to go toward your federal and state taxes so that you don't end up with a huge tax bill at the end of the year. They also do this so that they have money to spend throughout the year in the budget. Hopefully, you have planned your withholdings carefully and have paid the government slightly more that you owe, so that when you file your tax return you receive a refund.

Before you can get your refund, you'll need to know how to file your state and federal taxes.

Federal Income Tax Forms

See how to fill out your federal income tax forms in this interactive presentation.

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State Income Tax Form

Learn all you need to know about how to fill out your state income taxes in this presentation.

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Deductions and Credits

The amount of tax you pay may be affected by any tax deductions or credits that you are eligible to claim on your returns. Tax deductions reduce your taxable income. Some examples include:

• Local taxes paid
• Student loans
• Charitable contributions
• Interest paid on home mortgage(s)

Tax credits reduce the tax itself. You may get a tax credit for things like buying special items, for example, energy-saving vehicles and appliances.