Paying Uncle Sam: Tips For The First Time Taxpayer
Taxes, according to the definition, are a compulsory contribution to state revenue, levied by the government on workers’ income and business profits or added to the cost of some goods, services, and transactions.
Income tax, however, has a completely different connotation. The IRS explains it as, an interest-free loan given to the IRS. Which is given back to you once you’ve successfully filed.
But what does this mean to the first time taxpayer?
We’ve compiled a list of tips that should answer your basic questions concerning taxes.
Get Your Mind Right
The more information you learn about the taxing system the easier the process will become. Seeking advice from parents, your campus tax advisor or tax professionals will become beneficial.
Like everything in life, waiting until the very last minute to ask questions or even file could have adverse effects.
The deadline to file a tax return is April 15th, but missing information, having too little tax withheld from your wages, and careless mistakes can result in penalties, such as, fines or in worst cases, prison. It is important to begin the process well in advance to have enough time to correct any mistakes.
When filing your taxes there is a list of items you need to ensure a quick and successful process. Turbo Tax Preparation Checklist has an extensive list of items you will need based on your lifestyle.
You can download and print the check list here.
Don’t Miss Out On Deductions
If you’re going to school, and paying for it out-of-pocket, you can opt for certain deductions when filing your tax return.
According to Nerdwallet.com, A deduction reduces the amount of tax taken out of your paychecks, and education deductions can save you as much as $4,000.
Even minuscule things we don’t think about are tax-deductible. For example, donating clothes to GoodWill, traveling from work directly to school, and children can earn you a check from the IRS.
Click here for official information from the IRS concerning eligible deductions.
Coming from a tax paying OG, (my grand mother), using Turbo Tax to file your return is the smartest decision for a first-time tax payer. She says that the program gives you step by step instructions, calculates deductions, lets you know your filing status, and won’t cost as much as filing with H & R Block.
Following up on my grandmother’s advice, it seems as though Turbo Tax would agree with her sentiment. The website explains that the program will also notify you of any errors and provides one-on-one sessions with a tax professional for FREE if you need help.
You can download Turbo Tax software and start for free today.
Hopefully you’ve found this information to be helpful and remember you can try and live without taxes but you’d be thrown in jail for tax evasion, just ask Wesley.
Jasmine Roper15 Posts
Jasmine E. Roper is a graduate of Grambling State University. A member of Zeta Phi Beta Sorority, Inc. and The Society of Distinguished Black Women, Inc. She loves pizza, Ted Talks, and randomly snapchatting (is that a word?) Follow her on Instagram @OhMinaaa