Tax time can be a hectic time for any tax payer but particularly for a first time tax filer. Here you will find a few tips that will help to ease your stress. Taxes can be stressful but you have to keep calm and use these tips.
Organization is something that you want to have when dealing with the IRS. Usually, when you work for a company the company will mail you a W2 in either late January or the starting of February. A W2 is the paper that basically tells how much you made, how much you paid in state, federal and Medicare taxes.
If you worked and there were no taxes taken out then you are likely to be an independent contractor and you will be receiving a MISC 1099 form for each of the jobs that you worked. The MISC 1099 will only have the amount that you made and the company that paid you but again, without taxes being taken out. When there are no taxes taken out then you will have to figure out for yourself how much the taxes are that you must pay however, if you use a program like TurboTax then the taxes you pay will be figured for you. So make sure to examine all of the options you have available to you when it comes to preparing your taxes.
It is a good idea to put all of your W2s and any other paperwork that you might have that is tax related in a folder so, that you can get to them with ease. The other papers would be things like student loan interest payments, any IRA contributions and any other forms that could potentially mean a tax break for you.
Dont ever make the mistake of pretending not to receive the tax papers and not filing because the IRS will know and you will be penalized.
Speak with Parents if you are a student that has no dependents and you are planning to file your own taxes. It is important to speak with your parents because they might be planning to claim you as a dependent on their taxes. You cannot file your own taxes if you are going to be a dependent on anyone elses taxes because this will cause a problem for both parties.
Doing a little tax preparation and planning before hand can help save you time, money, and frustration when it comes to completing your taxes.