Filing Taxes 101: Filing for the First Time
If you’re a beginner when it comes to filing taxes, you may be feeling a bit overwhelmed about the whole process. You’re headed down the long road of being a tax payer, and it can be difficult to find your bearings at first.
A good way to start is to get a folder to hold all your tax documents. You’ll be receiving any W-2s in late January, and if you’ve done freelance work you might be receiving a 1099 form. These forms are vital to keep track of—the IRS has this information, and it’ll be the first thing they look at when going over your taxes.
If you’re a student in college, you may be receiving tax documents about deductible student loan interest. Use your tax folder to keep anything you can think of that might have tax implications; it’s better to be over-prepared when it comes to your taxes.
Talk with your parents
You can benefit from your parents’ years of tax-filing experience, and having their counsel can be a big help the first time you file. Additionally, they might be planning on claiming you as a dependent, and if they do you won’t be able to claim a personal exemption. It’s a good idea to coordinate with your parents to make sure potential problems don’t arise.