5 Tips for How to File Taxes for the First Time – TurboTax Tax Tips & Videos

overview Filing your taxes on your own for the first time is a major life milestone. here ‘s some friendly advice to help ensure you dot all of your i ‘s and cross your thyroxine ‘s. tips-for-how-to-file-taxes-for-the-first-time_L6nNi6uJn.jpg
Filing taxes for the first time is a adult milestone for any young pornographic. In the past, your parents may have handled tax filing for you, but now it ‘s your become to take cathexis of your finances and file your own reappearance. To help you cruise through the action, here are some promptly tips for how to file taxes on your own for the first gear time.

1.  Gather all of your tax documents

If you ‘re expecting a refund, you might be tidal bore to file your tax return a soon as you can. Throughout January, February and even March, you can calm receive important tax documents in your postbox, electronic mail or on-line .
Collect all the tax documents needed for your taxes before you begin, such as your

  • W-2s,
  • 1099s,
  • tax forms that report other types of income,
  • tax deductions, and
  • receipts.

If you file without one of these forms, you might need to amend your tax retort former .
Take a moment and think about anything you did in the past year that might impact your taxes, such as :

  • Changing jobs
  • Opening a new savings account
  • Selling stocks or mutual funds
  • Paying college tuition or student loan interest

2.  Decide whether your parents can claim you as a dependent

many new adults get fiscal aid from their parents, even after they start earning their own money. You might still live with your parents, get money from them to help with life expenses, or they may be paying for your education. If therefore, your parents might distillery claim you as a dependent on their tax return .
There are two ways your parents might claim you as a pendent :

  • Qualifying child. If you’re under the age of 19 (or under age 24 and a full-time student) and your parents provide more than half of your financial support, your parents can likely claim you as a qualifying child.
  • Qualifying relative. If you’re not a qualifying child, your parents might be able to claim you as a qualifying relative if you earned less than $4,300 in 2021, lived with your parents all year and your parents paid more than half of your total support for the year.

If your parents claim you as a dependent, they might be able to get certain tax benefits, such as education tax credits and the Credit for early Dependents. You even have to file a tax return if you had enough income, but when you prepare your return, you ‘ll have to indicate that you can be claimed as subject on person else ’ s fall .
Before you file, talk to your parents to find out whether they intend to claim you as a dependant so everyone is on the same page .

3. Consider relevant tax deductions and credits

Tax deductions and credits can lower your overall tax bill and even increase your refund, so you want to make sure you take advantage of everything you ’ re entitled to claim .
Some coarse tax deductions and credits for first-time filers include :
Don ’ t worry about researching the rules for claiming these tax credits and deductions. TurboTax will ask elementary questions to help you claim the tax collapse you ’ re eligible for .

4. Don’t forget about your gig economy income

Millions of young people participate in the spear economy as rideshare drivers, making package or food deliveries, freelancing full or half-time or working as a project-based adviser. If you ‘ve earned income from freelancing, do n’t forget to report your gig oeuvre income on your tax return.

  • Depending on how much you earn, you may receive a 1099-MISC for your work. But even if you don’t, you still need to report the income to the IRS.
  • You’ll report your gig work income on Schedule C attached to your Form 1040.
  • Usually, you can deduct any expenses related to your gig work, such as miles driven, supplies and advertising costs on Schedule C as well.

5. File electronically

Nowadays, you can do most everything from paying your bills to ordering lunch on-line, and filing your taxes is no exception. Using TurboTax makes the tax file work simple because it walks you through a series of questions, fills out the correctly forms and helps ensure you claim all the proper credits and deductions .
If you choose to e-file your return preferably than print and mail it to the IRS, you do n’t have to think about the adjust postage or stand in line at the post office .

  • The IRS estimates that taxpayers who e-file their tax returns often have their refunds issued in as little as three weeks.
  • You’ll often receive your refund even faster if you choose to have your tax refund directly deposited into your checking or savings account.

now that you ’ re on the room to filing your taxes for the beginning time, it ’ ll entirely get easier. Remember, with TurboTax, we ‘ll ask you elementary questions about your life and help you fill out all the right tax forms. With TurboTax you can be confident your taxes are done correct, from simple to complex tax returns, no matter what your site .

source : https://www.peterswar.net
Category : Finance

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