Top tips for first-time tax filers

Top tips for first-time tax filers

If it is your first time filing your federal income tax return this article is a must-read. Here you will find everything you must know. Read on to find out the most important information!

If it is your first time filing your federal income tax return this article is a must-read. Here you will find everything you must know. Read on to find out the most important information!

Filing your federal income tax return can seem overwhelming. But you can tackle tax season one step at a time and avoid rookie mistakes while you take advantage of money-saving opportunities.

Filing your federal income tax return can seem overwhelming.

You must know that, you need to file a tax return if you meet or surpass certain levels of income during the year. If you’re employed, look at your pay stub for the “year to date” income and if you have more than one job, be sure to add up your income from all your employers. Remember to include income from other sources, too, such as money you make on rental property, anything you sell, investments or interest.

Secondly, stay on top of tax-related paperwork throughout the year; it will make your life easier during tax season. You might want to keep receipts for things like charitable donations, work-related expenses and medical bills. 

You may also want to keep statements from student loans or investments and any grants or fellowships. Having these handy and organized can help you determine whether to itemize and make the process easier. You should keep your paperwork after you file, too. The IRS recommends keeping records for at least three years.

You may also want to keep statements from student loans or investments

Finally, watch for your income documents to arrive. You should receive forms about how much income you’ve earned from your employers and other income sources in January or February. If you are a full-time employee, you will receive a Form W-2 detailing your earnings, as well as which taxes were withheld. If you work freelance or on a contract, you may receive a Form 1099-MISC detailing what you earned. 

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