Filing your taxes for the first time can feel overwhelming. There are lots of forms, lots of numbers, and lots of consequences for doing it wrong.
But it’s not as daunting as you might think.
With the right information and preparation, you can file your taxes successfully–without a headache.
1. Start Early to Avoid the Last-Minute Rush
Waiting until the last minute to file taxes is a common mistake for many first-time filers. It can lead to stress, missed deductions, or errors that might delay your refund.
Staring early gives you plenty of time to:
Gather all your documents.
Research deductions and credits you might qualify for.
Resolve any potential issues, like missing forms or incorrect information.
By giving yourself ample time, you can avoid the pressure of a looming deadline, so you’re less likely to make errors that could delay your refund or even result in penalties.
Plus, filing early also means you’ll get your refund sooner - an added bonus.
2. Keep Track of All Your Income Documents
Whether you’re working a full-time job, freelancing, or juggling part-time gigs, accurately reporting your income is essential. Here’s what to know:
W-2s: If you’re employed, your employer will send this form to report your wages and taxes withheld.
1099s: Freelancers and gig workers will receive these forms from clients who paid $600 or more during the year.
Other income: Even if you don’t get a 1099 for smaller payments, you’re still responsible for reporting that income.
Pro Tip: Freelancers should keep detailed records of all income and expenses throughout the year. This not only ensures accurate reporting but also makes it easier to claim deductions, such as home office or equipment expenses.
3. Take Advantage of Tax Deductions and Credits
Tax deductions and credits can make a significant difference in your tax bill—or even boost your refund. Here are some common ones for first-time filers:
Deductions: Lower your taxable income. Examples include student loan interest and tuition payments.
Credits: Directly reduce the amount you owe. Look for the Earned Income Tax Credit (EITC), Child Tax Credit, or education-related credits like the American Opportunity Credit.
Not sure which deductions and credits you qualify for? A tax professional at AMG Finance can help ensure you don’t leave money on the table.
4. Consider Using A Tax Professional
Tax filing software can help guide you through the process, making it easier to file your tax return accurately.
Some of these platforms offer free options for simple returns if you make under $79 thousand dollars. If you make over that amount, you’ll likely have to pay for them to file your taxes.
If your taxes are more complicated–for example, if you are claiming deductions or credits or have income from freelancing–you may want to consult with a tax professional. A professional can provide expert advice and ensure you’re in compliance with all tax regulations.
Plus, they know what tax deductions and credits you qualify for, which can lower your tax burden. And if that’s not enough, imagine the peace of mind you’ll enjoy knowing your taxes were prepared properly.
At AMG Finance, our tax preparation experts are here to help, whether it’s your first time filing or your fiftieth.
5. Double-Check Everything Before Submitting
It’s easy to make mistakes when filing your taxes, especially when it’s your first time.
Simple errors, such as entering the wrong Social Security number or forgetting an electronic signature, can delay your refund or even trigger an audit.
Review your tax return carefully before submitting it to the IRS to ensure that all the information reported on it is accurate. This simple step helps avoid costly mistakes, which could lead to penalties or a longer wait for your refund.
If you’re unsure about anything, take the extra time to research or ask a qualified professional. The experienced tax preparers at AMG Finance are here to help you file your taxes successfully, the first time and every time.
Key Takeaways
Tax season doesn’t have to be stressful. By following these five tips - starting early, gathering the proper documentation, taking advantage of deductions and credits, using filing software or tax professionals, and double-checking your return - you can file your taxes with confidence.
