For any young adult, filing their first taxes is a significant milestone. You may have had your parents file your taxes in the past, but now it’s your responsibility to manage your finances and file your own return. Here are some simple hints on how to file taxes on your own for the first time to make the process go more smoothly for you. Read more about ITR filing online.
Gather all of your tax documents
You might be eager to file your tax return as soon as you can if you anticipate receiving a refund. You can continue to get crucial tax paperwork in the mail, by email, or online throughout the months of January, February, and even March.
Decide whether your parents can claim you as a dependent
Many young adults continue to get financial support from their parents even after they begin to work for themselves. Your parents may still be your roommates, provide you money to help with living expenses, or support your school financially. Your parents may still include you as a dependent on their tax return if that is the case.
Your parents may deem you a dependent in one of two ways:
eligible child. Your parents may be able to claim you as a qualifying child if you are younger than 19 (or younger than 24 and enrolled full-time in school) and your parents are responsible for more than half of your financial support.
relative who qualifies. If you did not get help from your parents for more than half of the year and did not qualify as a qualifying kid in 2022, your parents may still be able to claim you as a qualifying relative.
If your parents list you as a dependant, they may be eligible for various tax breaks, including the Credit for Other Dependents and the Education Tax Credit. If you made enough money, you must still file a tax return, but you must state on your return that you can be claimed as a dependent on someone else’s return.
Ask your parents if they plan to declare you as a dependent before you file so that everyone is on the same page.
Take into account pertinent tax credits and deductions
You should make careful to claim all of the tax credits and deductions you are eligible for because they can reduce your overall tax liability and potentially raise your refund.
For first-time filers, a few typical tax credits and deductions are as follows:
American Opportunity Credit and Lifetime Learning Credit are examples of educational tax credits.
interest deduction for student loans
Itemized deductions against the standard deduction
Credit for Earned Income
If you are self-employed, you can take a home office deduction.
Studying the guidelines for obtaining these tax deductions and credits is not necessary. Simple questions will be asked by TurboTax to help you claim the tax benefits for which you are qualified.
Be mindful of your gig economy earnings
Young people work in the gig economy in their millions as rideshare drivers, package or food delivery workers, full- or part-time freelancers, or project-based consultants. Don’t forget to include your revenue from gig work on your tax return if you’ve earned money from freelancing.
You can be given a 1099-MISC for your work, depending on how much money you make. You must still disclose the income to the IRS even if you don’t.
You must include Schedule C, which is an attachment to your Form 1040, in your income tax return.
Typically, you can deduct any costs associated with your gig job on Schedule C as well, including mileage, supplies, and advertising charges.
Submit documents digitally
Nowadays, you can pretty much do everything online, including everything from paying your bills to purchasing lunch. This includes submitting your taxes. By guiding you through a series of questions, filling out the proper forms, and assisting you in making sure you claim all available credits and deductions, TurboTax simplifies the tax filing process.
You can save time and avoid standing in line at the post office by choosing to e-file your return rather than print it out and mail it to the IRS.
The IRS predicts that people who file their tax forms electronically frequently receive their refunds in as little as three weeks.
If you choose to have your tax refund immediately deposited into your bank or savings account, you’ll frequently get your money even faster.
It’ll only become simpler now that you’re on your way to filing your taxes for the first time. Keep in mind that with TurboTax, we’ll assist you complete all the necessary tax forms and ask you straightforward questions about your life. No of your circumstances, you can be sure that TurboTax will handle your taxes correctly, whether they are straightforward or complex.