TaxAct makes preparing and filing your taxes quick, easy and affordable so you get your maximum refund. You can view the IRS’s current rules about who can be claimed as a dependent on someone else’s tax return here. Don’t forget to organize information for possible credits, such as the Child Tax Credit. If you can’t file electronically, you can mail a completed Form T1-ADJ along with supporting documents to your tax centre. Wait until you receive your Notice of Assessment (NOA) from the CRA before making any corrections. Ringbauer recommends that his clients keep records of their tax documents in a digital folder on a cloud platform of their choosing.
- See a list of IRS taxable income to determine what to include in your gross income.
- If you need help with your tax return and meet the criteria for modest income and a simple tax situation, you might qualify for assistance at a free tax clinic.
- Don’t forget to organize information for possible credits, such as the Child and Dependent Care Credit.
- Refund advances are essentially loans that you borrow against your anticipated tax refund.
- We think it’s important for you to understand how we make money.
Filing taxes for the first time isn’t as complicated as it may seem. Most first-time tax filers have relatively straightforward finances, which means you likely only 6 tips on filing taxes for the first time need to learn a few basic tax filing concepts to get started. With each tax season, you’ll become more confident and efficient in managing your taxes. Partnering with UltimateTax can provide you with the tools and support needed to simplify your future tax filings. Take control of your tax obligations and set yourself up for financial success. Filing taxes for the first time can be a learning experience, but with the right guidance, it becomes manageable.
A Beginner’s Guide to Filing Taxes: Tips and Tricks for First-Time Filers
- Tax software must be recertified by NETFILE each year, and the CRA will update its online database once platforms have been certified for the 2024 tax year.
- Being able to deduct expenses for your business or household can be one of the bright sides of filing taxes.
- However, if you owe taxes or penalties, both parties will be responsible in a joint filing.
- Using tax software can help minimize these errors by highlighting inconsistencies or missing information.
But if you want money more quickly, you may consider applying for a refund advance. Refund advances are essentially loans that you borrow against your anticipated tax refund. A tax credit directly reduces the amount of tax you owe and could give you a bigger refund if it’s a refundable credit like the AOTC. A tax deduction reduces the amount of income you have to pay tax on, meaning you could end up owing less.
First-Time Income Tax Return Filing? Here’s Your Simple 10-Point Guide
According to a National Society of Accountants survey, the average fee for a federal/state tax return was $180. You can claim some expenses in addition to the standard deduction, including student loan interest and business use of your car or home. To file as a widow(er), you must check the “qualifying surviving spouse” box.
Don’t forget about your gig economy income
The tax forms you need to file your taxes include W-2s, 1099s and other forms reporting any kind of income. For instance, I get 1099-INTs every year from Capital One, Discover and the credit union I’m a member of because that’s where I keep my savings. For instance, if you’re not married, younger than 65 and your gross income was less than $14,600 in 2024, you don’t need to file this year.
If not, don’t itemize, because the standard deduction will save you more money. Visit your state’s Department of Revenue website for more information. Everyone feels this way about the tax preparation process at one time or another. You don’t need an elaborate filing system to keep good track of your tax information — a simple file or box will do.
Filing Options: Choosing Between E-Filing, Paper Filing, or Hiring a Professional
Make sure the form is consistent with your sources of income, property ownership and profession. Review the entire return, fix errors if any, and click on ‘Submit’. The system may prompt you to check certain fields before final submission. Input your personal, income, and deduction details manually or via pre-filled data. Double-check figures against your Form 16, AIS/TIS, and bank statements. You can file a belated return until December 31, 2025, but this attracts a penalty of Rs 1,000-Rs 10,000 depending on the delay and income.
Married Filing Jointly
If you filed before, your prior-year tax return will show your adjusted gross income. Those who work with business tax preparers should also consult with them to determine the format in which business data should be transmitted for preparation of your returns. The IRS uses your tax filing status to determine what they need from you to file your return. Your filing status can also determine the standard deduction amount you qualify for and your eligibility for certain tax credits.
Technology can glitch, inclement weather may affect mail pickup, and you will need to be mindful of post office closing times. If you cannot make the tax deadline, you may request an automatic six-month tax extension to October 15, 2025. However, remember that the extension will not affect when you need to pay your taxes. There are currently only nine states with no income taxes, so you will need to file a separate return if you live elsewhere.
To be eligible for this, you must have lived with a dependent child for the entire year and paid more than half the household costs. If you file an extension, you must still pay taxes you owe by the deadline. Direct File – Prepare and file your taxes online – for free – directly with the IRS. It’s important to track your deductible expenses, as these can lower your taxable income and potentially increase your refund.