Are you a first-time income tax filer? Are you feeling overwhelmed at the thought of doing your taxes for the first time? Don’t worry. You’re not alone. Filing your taxes may seem like a daunting task, but with a bit of organization and planning, it can be a breeze.
Here are some simple tips to help make filing your income taxes as easy as possible.
Gather your tax documents
To file your taxes, you will need to gather various documents, including your W-2 form, 1099 forms, and any other documentation related to your income or deductions. You can find a list of standard tax documents on the IRS website. Make sure to collect all of the necessary documents before filing your taxes. It will help ensure that you have everything you need and avoid having to scramble at the last minute.
It’s essential to be organized when filing your taxes, especially if this is your first time doing so. Create a folder or binder to store all of your tax documents. It will make it easy to find what you need when it comes time to file.
Determine your filing status
There are five filing status options for taxpayers: single, married filing jointly, married filing separately, head of household, and qualifying widow(er) with dependent child. Which filing status you choose will affect the amount of taxes you owe.
For first-time tax filers, the most common filing status is single. It is the status for taxpayers who are unmarried or considered unmarried on the last day of the tax year. If you are married but file your taxes separately from your spouse, you choose the married filing individually.
Calculate your taxable income
Once you have determined your filing status, you must calculate your taxable income. It is the amount of income that is subject to income tax. To calculate your taxable income, you will need to know your Adjusted Gross Income (AGI). Your AGI is found on line 38 of your 1040 form.
There are several deductions and credits available to help reduce your taxable income. For first-time tax filers, it’s essential to familiarize yourself with the most common deductions and credits. The IRS website has a wealth of information on both.
Compute your tax liability
Tax liability is the amount of taxes that a taxpayer owes to the government. Tax liability computations can be complex, involving such calculations as taxable income, deductions, exemptions, and credits. However, online tools are available that can help taxpayers compute their tax liabilities. The IRS website has several such tools, including the Tax Calculator and the Withholding Calculator.
Claim any available deductions and credits
There are five types of people who file taxes: single, married filing jointly, married filing separately, head of household and qualifying widow(er) with dependent child.
- You need to fill out a form that tells how much money you make and how much money you owe. You will also need to collect information like 1099s or W-2s.
- There are many deductions and credits that can help reduce your tax liability.
If you want to claim tax deductions or credits, you must file Form 1040 and Form 1040A or Form 1040EZ. The form you use will depend on your income and filing status.
Some deductions and credits are available, including the Earned Income Tax Credit (EITC) and the Child Tax Credit. To qualify for these credits, you will need to meet specific requirements.
For more information, visit the IRS website.
Filing your taxes can be a daunting task, but it can be a breeze with a bit of organization and planning. Follow these simple tips to make filing your income taxes as easy as possible.
File your return electronically or by mail
When you file your taxes, you will need to organize everything and put it in a folder. There are many ways that you can do this. If you don’t want to file electronically, the mail is a good idea!
The good news is that the process of filing your taxes as a first-time filer is relatively easy. You’ll need to gather some important documents, like your Social Security card and W-2 form, and then you can either use tax preparation software or file online. If you have any questions along the way, the IRS has a wealth of information available on their website.
If you need help preparing your tax return, please feel free to reach out to us. The Oasis Firm can help you file the correct tax return and fill in all the correct information you will need. Give us a call today.