Tips For Filing Tаxes For the First Time in Yeаrs
filing taxes for the first time in years? Do you want to make sure you are doing it right and get someone to reassure you? Here is information to help you out.
Related to filing taxes for the first time in years:
mistakes can happen the first time you attempt anything in life, and filing your taxes is not any different.
Messing up in your tax return can cost you money, but you can take steps to avoid some typical rookie errors that are tax-filing.
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Tips For How To Do Tax Return Online
Here are a few common first-time filer mistakes and ways to avoid making them.
1. Not filing at all
You think: I didn’t mаke much money, so I don’t have to document it, do I?
Thаt assumption could be an expensive mistake. It is a common problem with filing taxes for the first time in years.
The number of factors that determine whether you need to file include income, your age and marital status, child tax credits, property, dividends and more.
By way of example, if you’re single, earning $12,000 (the standard deduction for the single filing status) or more it means you’ll need to begin paying taxes.
And when an employer withheld income tax you might qualify for a bigger tax refund, but you must file a tax return to get it.
On your W-2 see how much in taxes you had withheld for the year; federal income tax withheld, check Box 2.
Regarding the earned income tax credit, not submitting could also mean you miss out on credits you may qualify for.
Learn more about what the earned income tax credit is.
2. Filing your tax documents
We recommended filing your income tax return.
But being in too much of a rush can work against you.
By way of example, you might forget to report the income you earned and file before you get a Form 1099 for that work.
And when you file, you get the 1099 and then a letter from the IRS saying you owe more tax due to the income.
Tаke time to ensure you received all your income statements and any other documents you might need.
Lаw-based, most companies are required to have income statements.
For example, W-2s and 1099s sent out by January 31 wait for all of them to arrive before filing your taxes.
This is usually the first step for filing taxes for the first time in years when it comes to getting your documents organised.
3. Picking on the wrong filing status
Lastly, always ensure you know the right filing status when it comes to
filing taxes for the first time in years.
You could end up costing yourself some cash if you make the mistake of picking the wrong filing status.
By way of examples, if yore unmarried and have a child who lives with you, by picking the status, you will be allowed the standard deduction of $12,000.
But your dependent child may help you qualify for the filing status.
With the standard deduction for head of household raising to $18,000 for the 2018 tax year thаts a gap of $6,000.
It’s a good idea to get reassurance from a tax professional who can guide you further to file taxes online.
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