Filing Your Taxes For The First Time
Filing your taxes on your own for the first time can seem like a scary process
. Most likely, you have filed as a dependent throughout your whole life and your parents have filed for you.
However, now you are a responsible adult and you probably have a real job. Despite the change, filing taxes on your own does not have to be scary.
The first thing you should know is that April 15 is the big deadline. Your taxes have to be in by that day, or they will be late.
You should also know that your taxes do not include the information from April to April, but from January to December. So for this year, you will include the information from the January before last through the previous December.
This means that if you want to maximize your deductions, you will need to prepare and do things before December 31st. A good person to talk to about taxes is your employer.
Your employer will know, and probably have, all of the tax forms that you need on hand. You may also need some forms from employers you worked for previously in the year.
The W2 forms and 1099 forms should sound familiar to you, but they are the forms that you will need. One of the many deductions you can receive comes from charitable donations.
If you donated money to a good cause throughout the previous year, you will be able to include it in your taxes. It is a good idea to visit the IRS website as they have many tips posted about recent tax changes and about how certain types of deductions will affect your overall tax payment.
They also have several services that can make filing your taxes much easier. Some of these applications are even free.
Then, you will want to request a copy of last year's tax return from your parents so that you can see how they did it, as long as they did it correctly of course.
Keep in mind that you probably make less than your parents do. This means that you will fall into a different tax bracket than your parents.
Tax brackets are made of different levels of incomes and each level of income is required to pay a certain amount of taxes on a percentage basis. Most likely you will fall into the 28 percent or lower bracket, but your state's tax bracket may be different.
Filing can be challenging if you have no idea what you are doing. Often there are many tax help classes available in many communities which you can attend and get free help.
However, if you have an accounting friend, or even another friend who has filed taxes before, they may be able to help you. You can also hire a tax professional to help you with your taxes if you have enough money.
If you decide to hire a tax professional, be sure to get some references for good ones that charge a decent price from your family and friends. You can also research tax professionals in your area online.
H&R Block and Jackson Hewitt are two of the most famous tax help firms. However, a tax help software program may be enough to get you through the process of filling out your own taxes painlessly.
The IRS website has some software programs like this for free on their website as long as you fall into certain tax brackets. If you choose to hire a tax professional though, you will want to check to make sure that they have the right credentials.
He or she will be looking at private information and if he or she uses it wrong, it could severely hurt you. Be sure that you agree with their price and that you feel like you can trust them as well.
If you have your own job, you should be putting away some money for retirement. The money you put into a 401K up to a certain amount is deductible from your taxes.
The maximum amount you could contribute in recent years has been $16,500, but this can make a significant difference in your taxes. These tips can help you get started, but be sure to get help if you need it.
The IRS website has a wealth of information about this year's taxes as well as pages with frequently asked questions. Do not hesitate to get the help now, rather than later when the IRS knocks on your door because you accidentally did your taxes wrong.
by: Jack Landry
Free Tax Facilitate - How To Find It Your Tax Come Back - How The Tax Return Method Works Fair Share of Taxes Investment property tax deductions Meade Accounting and Taxation Have Renowned Tax Consultants in Richmond Hill Abusive Tax Schemes L.A. needs to build NFL stadium now Capital Gains Tax Loopholes Shrinking How to Buy NFL Ticket Packages Obama Ignores Gays and Lesbians In Tax Debate Finding a Reliable Tax Preparer Payroll Tax Penalties, When the IRS Sends a Letter Spendaholics: Why the Tax Cut Compromise Was Necessary