Tips for Filing Your Taxes for the First Time
It’s said that death and taxes are the only two certainties in life. Hopefully, death is a long way off for us all, but tax season comes around each year! We know that filing taxes can be confusing, and it’s even worse if you’ve never done it before.
The good news is that we’re here to ease the filing burden. Keep reading to learn a few tips on how to navigate the world of taxes.
See if your parents are claiming you
The first tip in filing your taxes is to talk to your parents to see if they’re claiming you as a dependent, either as a qualifying child or qualifying relative.
Your parents may claim you as a qualifying child if you’re under 19 and your parents provide more than half of your financial support. They could claim you as a qualifying relative if you earned less than $4,300 in 2020, lived with them all year or if they paid more than half of your total support in 2020.
You’ll still have to file your own taxes if either of these scenarios is the case, but you’ll need to indicate that someone else is claiming you as a dependent.
Gather your documents
Whether this is your first-time tax or you’re filing for the hundredth time, you’ll need to have a variety of papers to make the process seamless and to maximize your refund. A few of these documents include any W-2s, 1099s and reports for other types of income. As a general rule, the more documentation you have for your yearly financials, the better!
Consider deductions and credits
Claiming tax deductions and credits is a great way to lower your tax bill or increase your refund, so be sure to do your research on the different types of deductions and credits that apply to your financial situation. There are deductions for everything from education expenses to home office supplies.
Online information about deductions isn’t always easy to understand. We recommend working with a CPA to ensure you maximize your refund by claiming all applicable deductions and credits.
Include your gig economy income
Driving for Uber, delivering food for DoorDash or doing any type of freelancing are just a few of the jobs that fall under today’s “gig economy.”
You won’t get a W-2 form for these jobs, but you may receive a 1099-MISC form if you earned enough money. But even if you don’t get a document, you’ll still need to claim these jobs when you’re filing taxes.
Hire us to file for you
Hiring a CPA to tackle your taxes is always a good idea, especially if this is your first-time tax. A professional will ensure you get the largest refund and help keep you out of any trouble with the IRS.
Look no further than Kedean’s Generation to handle your tax and accounting needs. Whether you need someone to do all of your taxes or just some help with tax consulting, we’re the team for the job.
Categorised in: Tax Preparation