Filing a tax return is never easy, even for a seasoned taxpayer. For those filing taxes for the first time, it can be a daunting task.
A word of advice: Don’t panic. As overwhelming as taxes may seem, you can breeze through the tax season by following these simple tips for a first tax return.
Being organized goes a long way. Depending upon your mode of work, you may have to either fill a W-2 that you get from your workplace or a 1099-MISC, if you work as an independent contractor.
Make sure you keep your earning statements, along with other income statements such as interest or other investment earnings and documents useful in claiming deductions in a specified folder.
Talk to Your Parents
If you are a student filing a tax return for the first time, it is better to sit down and discuss it with your parents. They might list you as a dependent and claim education tax breaks, especially if they are paying for your college education. It is only fair to let them benefit from the education tax break.
Make Sure You Take the Deductions You Are Entitled To
Certain deductions are overlooked by first-timers. Make sure you claim the deductions if you fulfill the requirements. Some overlooked deductions include
- State and local sales taxes.
- Job search expenses.
- Child and dependent care expenses.
- Charitable contributions through payroll deductions.
Don’t Make Mistakes
If you think you can not do your taxes by the deadline, ask for an extension. It is better to ask for an extension then to make a mistake and get flagged for an audit.
Tax Help MD
If you are doing your taxes for the first time and going around like a headless chicken, not knowing what to do, rest assured. Our tax experts at Tax Help MD are here to help you through the tax season. Call us now on 888-632-4506 for free advice and consultation.