You have lived through many milestones on your path to adulthood, and now that day has finally come. Everything that has come before, from your first steps as a toddler to your first time behind the wheel of the family car, has helped to prepare you for this day, and now there is one more obstacle to tackle.
That new obstacle involves the complexities of the tax code, the ways in which the monetary system works, and, of course, a frightening three-letter agency known simply as the IRS. As you get ready to tackle your first tax return, you will want to learn about all those things and more, and here are some timely tips for getting started and getting it all done.
Ask your parents if they are planning to claim you as a dependent.
There is a good chance your parents may still be able to claim you as a dependent, and that will change the way you complete your own return. If you file your own return without knowing if your parents plan to claim you, that action could get you and them in trouble.
Estimate your taxes.
Even if you are not quite ready to file, you can still grab your W-2 and start estimating what you owe or what you will be getting back. ezTaxReturn has a FREE tax refund calculator you can use to quickly and ez-ily estimate your refund.
Research tax-saving investment vehicles.
It is never too early to start saving for the future, and investing in tomorrow could save you a lot of money today. Opening an IRA, contributing to a 401(k) at work, and other actions could reduce your current taxes while preparing you for the future.
Don’t get too hung up on a big tax refund.
It is easy to get excited when you find out you are getting a big tax refund, but it is best not to get too hung up on that supposed governmental largesse. The tax refund you will be getting is not free money – it is simply the return of the cash you paid the IRS. In the end, having a smaller refund means you got to use that money as you earned it instead of waiting for April 18th to roll around.
Seek out free tax software.
The good news about your first tax return is that it should be pretty simple. Chances are you have a job and perhaps a side hustle or two, but the initial return you file should not be too complicated. You may qualify for a FREE simple federal return. ezTaxReturn is the fastest and ez-iest way to do your taxes. File anytime, anywhere in 30 minutes or less.
Life as an adult can be exciting and satisfying, but there are responsibilities that come with those newfound rights. Now that you are an adult, the IRS will view you as such and hold you responsible if you do something wrong. Filing your first tax return is a major milestone in your life as an adult, and once it is over, you will be able to move forward with all the other things you have to do.
