Got your first job? Here are some tax tips for first-time filers

Business expenses reduce your self-employment tax, as well as your income tax, so you don’t want to miss any of them. You don’t need a showcase filing system to keep good track of your tax information. The important thing is to make sure it all lands where you can easily find it later. One of the most important details you need to know before filing your tax return is whether you are classified as a dependent on someone else’s tax return.

• How much you make will then place you in a certain tax bracket, and that percentage is how much you should have paid in taxes.
• If you’re unable to meet the deadline, consider filing for an extension using Form 4868, which gives you an additional six months to file.
• There are currently only nine states with no income taxes, so you will need to file a separate return if you live elsewhere.
• Utilizing resources like free tax clinics or online forums can also offer valuable guidance and support.
• Direct File – Prepare and file your taxes online – for free – directly with the IRS.

When Do I File Taxes?

Consider keeping a notebook or tracking your business mileage electronically. Most young taxpayers can file the 1040EZ, which is the easiest form and has no supplementary forms. To qualify, you cannot claim any dependents and your taxable income must be less than $100,000. In general, experts recommend filing tax returns earlier rather than later. The earlier you file, the better your chances of avoiding tax-related identity theft, a crime that’s on the rise.

First time filers

Those deductions can lower your taxes and perhaps lead to a refund. For example, in 2024, if you are under age 65 and filing Single or Married Filing Separately, you typically must file an income tax return if your gross income was $14,600. According to the IRS, the vast majority of individual tax returns are filed electronically.

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Certain taxpayers can’t use the standard deduction, like a married individual filing separately whose spouse itemizes deductions. For married couples, choosing to file taxes jointly or separately can have a significant impact on the amount of income tax owed. If you got married on or before December 31, you’re considered married for the entire year for tax purposes. Moreover, it’s also important to be aware that you may also receive a letter from the IRS after submitting your tax return.

The CRA is making it easier for newcomers to Canada to apply for benefit payments

This blog breaks down things that are important to help new taxpayers submit returns with clarity and confidence. The easiest way to get your taxes done is to simply submit these documents to a professional tax service. You can visit a financial store, like Check City, that offers tax services in person. Check City even offers Tax Advance Loans so you can get your refund sooner.

These reports are available on the income tax portal and help ensure accuracy in filing. Married couples should evaluate whether to file jointly or separately. However, filing separately may disqualify you from certain credits, like the EITC. You can do taxes yourself in several ways, including using a tax software or sending your completed forms directly to the IRS. Doing it yourself can save you money, but you need to gather all your documents and be thorough when completing each form to ensure your return is accurate. You can work with a tax professional (who may have an advanced degree like a master’s in taxation) to figure out your situation, or you can file your taxes yourself.

• When choosing to use TaxAct® as your tax preparation solution, you can easily prepare and file your federal and state returns by simply answering a few questions as you go.
• This includes income statements, receipts for deductible expenses, and any correspondence from the IRS.
• The IRS uses your tax filing status to determine what they need from you to file your return.

However, generally, as long as you’re compliant and trying to pay your unpaid taxes, the IRS will usually work with you to get your taxes paid. Once you get your first job and you’re making your own money, you will receive a W-2 shortly after the new year begins. Suddenly, you are thrust into the world of taxes and might not know what you’re supposed to do.

I know some hardcore credit card enthusiasts who once overpaid their taxes to get a bonus, knowing the IRS would refund them. If you’re looking for 6 tips on filing taxes for the first time an affordable option, look into your local credit unions which may offer low-cost tax preparation services. In some cases, you may not be required to file, but if you’re eligible for a tax refund you’d need to file in order to get your money back.

Who files

If any part of the process feels overwhelming, consulting an income tax lawyer can help ensure accuracy and compliance from the start. It is issued by the employer and has a detailed summary of the salary, the tax deduction and TD (tax deduction at source) made during the financial year. If you have earned interest income or rent, documents such as Form 16A, Form 16 B and Form 16C will help report TDS on non-SALT payments.

The IRS offers several options to help you manage your tax debt, such as setting up a payment plan. You can also consider paying your tax debt with a credit card or taking out a loan. Ultimately, the choice of how to file your taxes is a personal one that depends on your individual needs and preferences.