Filing taxes for the first time is a significant achievement for any young adult. Your parents may have handled tax filing for you in the past, but now it's your turn to take control of your finances and file your own return. Here are some quick tips for filing taxes on your own for the first time to help you get through the process. AccoTech is the most trusted and best tax filing company for preparing your tax return. Our tax professionals provide comprehensive support and assistance by making the tax filing procedure as simple and straightforward as possible for you. 1. Collect all of your tax documents. If you anticipate a refund, you may be eager to file your tax return as soon as possible. You can still receive important tax documents in your mailbox, email, or online throughout January, February, and even March. Before you begin, gather all of the tax documents you will need for your taxes, such as your
Consider anything you did in the previous year that may have affected your taxes, such as:
2. Determine whether your parents are eligible to claim you as a dependent. Even after they start earning their own money, many young adults receive financial assistance from their parents. You may still live with your parents, receive financial assistance from them to help with living expenses, or they may pay for your education. If this is the case, your parents may still claim you as a dependent on their tax return. Your parents can claim you as a dependent in two ways: Child who qualifies. If you're under the age of 19 (or under the age of 24 if you're a full-time student) and your parents provide more than half of your financial support, you're likely a qualifying child. relative who qualifies If you are not a qualifying child, your parents may be able to claim you as a qualifying relative if you earn less than $4,300 in 2021, live with your parents for the entire year, and your parents pay more than half of your total support for the year. If your parents claim you as a dependent, they may be eligible for tax breaks such as education tax credits and the Credit for Other Dependents. You must still file a tax return if you earned enough money, but you must indicate on your return that you can be claimed as a dependent on someone else's return. Before you file, check with your parents to see if they intend to claim you as a dependent so that everyone is on the same page. 3. Take into account any applicable tax deductions and credits. Tax deductions and credits can reduce your overall tax bill and even increase your refund, so make sure you claim everything you're entitled to. The following are some common tax deductions and credits for first-time filers:
4. Don't overlook your earnings from the gig economy. Millions of young people work in the gig economy as rideshare drivers, package or food delivery drivers, full-time or part-time freelancers, or project-based consultants. Don't forget to report your gig work income on your tax return if you've earned money from freelancing. You may receive a 1099-MISC for your work, depending on how much you earn. Even if you don't, you must still report the income to the IRS. You'll report your gig work earnings on Schedule C, which is attached to Form 1040. On Schedule C, you can usually deduct any expenses related to your gig work, such as miles driven, supplies, and advertising costs. 5. Submit electronically You can now do almost anything online, from paying your bills to ordering lunch, and filing your taxes is no exception. Using Accotech simplifies the tax filing process by walking you through a series of questions, filling out the correct forms, and ensuring you claim all of the appropriate credits and deductions. You don't have to think about the correct postage or stand in line at the post office if you choose to e-file your return rather than print and mail it to the IRS. It will only get easier now that you're on your way to filing your taxes for the first time. Remember that with Accotech, we'll ask you simple questions about your life and assist you in filling out all of the necessary tax forms. With Accotech, you can be confident that your taxes will be done correctly, from simple to complex tax returns, regardless of your situation.
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