Learn everything you need to know about filing your taxes, from the first form to the last.

In many ways, tax season is similar to basketball season. Nerves are jittery and tension is high, especially among the rookies. First-time tax filers may find the term "March Madness" fitting, and it's understandable. There are numerous forms, complex instructions, and the looming possibility of owing money to the Internal Revenue Service (IRS). However, with a good coach and plenty of time to prepare, it's easy to march into tax season without going crazy.

The U.S. Federal Government levies a tax on income. As an individual's income increases so does the respective tax rate. According to the U.S. Department of the Treasury, the purpose of the structure is to ensure that people are taxed according to their ability to pay. It's a progressive structure, similar to how a good player gets more court time. Other personal situations such as filing status, income, exemptions and deductions also affect how much you're expected to pay.

• Filing Status: Basketball teams have five starters and the IRS has five filing statuses: single, married filing jointly, married filing separately, head of household, and qualifying widow(er) with dependent child. Search "five filing status" at irs.gov to determine which one fits best.
• Income: For each filing status, there is a corresponding tax bracket that incorporates income range and tax rate. For example, in 2009 single filers paid a 10% tax if their income was not over $8,350. For those making over $8,350 but not over $33,950, the tax was $835 plus 15% of the income over $8,350, and so on. Tax brackets are updated annually.
• Exemptions: Exemptions allow you to reduce taxable income by a certain amount ($3,650 in 2009). Allowed exemptions include yourself, spouse, and dependents. A dependent is a relative who relies on you for their financial support (usually a child). For the full definition, read the "Exemptions" section of Publication 501 at irs.gov. Note: If you are a dependent, you are not allowed to claim an exemption for yourself on your return.
• Deductions: Deductions are a reduction of taxable income. Most taxpayers are entitled to the standard deduction; those who don't qualify (see Tax Topic 501 at irs.gov) can itemize their deductions. If you decide to itemize (if itemized deductions exceed the standard deduction), the IRS allows certain expenses to be deducted. Medical expenses, state income or sales tax, and certain types of loan interest are some itemized deductions. Refer to Tax Topic 500 at irs.gov for more info.

The U.S. tax system is based on a pay-as-you-go methodology. Estimated taxes are withheld from pay and sent to Uncle Sam throughout the year. By April 15 of each year, the previous year's returns are prepared and filed. If too much estimated tax was paid over the course of the previous year, you'll get a refund, and vice versa. This is done when you fill out a W-4 form, which determines the amount of federal income tax to be withheld from each paycheck.

When filing personal taxes, you'll choose from three versions of the 1040 form. Here are a few differences:

• 1040EZ: Select if you are a single or joint filer with no dependents.
• 1040A: Select if you claim tax credits and deductions for things like student loan interest and tuition.
• 1040: Select if you made more than $100,000, had self-employment income, or dependents.

For more differences and help in selecting a 1040 form, search "tax form that fits needs" at irs.gov.

Gather paperwork--1040 form instructions (available from irs.gov), receipts for deductions, etc.--and additional forms before filling out the 1040. This will help the process move quickly and ensure that nothing is missed. The 1040 form can be filled out online at irs.gov (which is easier) or by hand.

(based on standard 1040 form)

Filing Status (lines 1-5): Select your status.

Exemptions (line 6): Select yourself if no one else can claim you as a dependent. You can also select a spouse and any eligible dependents.

Income (lines 7-22): Enter all income (refer to and attach the W-2 form). Be sure to include tips and income from investments.

Adjusted gross income (lines 23-37): Enter the adjustments to gross income, which include deductions from your IRA, student loan interest, and tuition and fees. Calculate the adjusted gross income (AGI) by subtracting the aforementioned deductions from the total income on line 22.

Tax and credits (lines 38-60):

• Deductions. Choose the standard deduction or itemize deductions. For itemized deductions, add together eligible deductions with a separate form, Schedule A. Be able to prove all deductions with receipts and records. In the end, it's worth the effort because taxable income is reduced.
• Tax. Calculate your tax liability. Find your filing status and taxable income on the tax table located in the instructions.
• Subtract available credits.

Payments (lines 61-71): Enter tax previously withheld from the W-2 or 1099 forms.

Refund (lines 72-74) or Amount You Owe (lines 75-76): Did you pay more than your tax liability? The difference will be refunded by the IRS. If you paid less, then you owe the difference to the IRS.

Federal taxes can be e-filed: search "e-file" at irs.gov to get started. E-filing allows you to easily alley-oop tax information to the IRS via a legitimate third-party tax company. The process can be free (free file) if you make less than $56,000 annually. E-file reduces tax stress by computing the math automatically, processing everything electronically, and making sure the right deductions and credits are used. It's like having a personal shooting coach.

Or do it old school. Send the form via certified mail with a return receipt to the regional processing center.

If you need assistance when filing your return, resources are available online at irs.gov/help.

Sources: irs.gov, fool.com, usps.com, treasury.gov