As a millennial, you probably have a lot of financial responsibilities. One could be student loans then second is some investments together with different sources of income such as part-time jobs or side hustles. With this, filing your own taxes could also mean carrying some stress which can cause you some panic.
Southbourne Tax Group understands your worries as a millennial in this regard, thus the following were made to ease your qualms. But before anything else, experts also recommend contributing to your 401(K) plan to save on taxes and to invest in your retirement as well.
Keep in mind the tax deadline
Meet the deadline without further excuses but if there are any unexpected circumstances, alert the IRS beforehand with proper steps. Choose whether to file your taxes completely, request an extension, or apply for a payment loan. You’ll be responsible for penalties, interest and late fees if you miss the deadline without asking for a proper extension.
Find the good tax software
You can use a DIY tax software program in filing your own taxes if your tax situation is pretty simple. Good thing is that the IRS offers free software if your income is $64,000 or less to help you file your taxes with no charge.
Side hustle expenses should be written off
Filing taxes for the income from your day job could be simple but if you’re also side hustling, better have further considerations. Let’s say you can write off specific expenses you had with your side hustle such as from buying various equipment or supplies. Costs of such can be deducted on your tax return, reducing your taxable income.
Make the best use of education tax savings
The majority of education costs are tax deductible. And to determine the ones you’re qualified for, enumerate all your higher education expenses. Consider getting more tax tips with the help of a tax professional if you’re still uncertain, or follow the reminders provided by the tax software.
Ask about the saver’s credit
Saver’s credit is a tax credit offered by the IRS to motivate people to accumulate money in a retirement account. With this, your tax bill at the end of the year could be greatly reduced. The credit amounts to 50%, 20%, or 10% of your retirement contributions up to $2,000. It depends on your adjusted gross income the amount you’re qualified for.
Job-hunting costs should be deducted
Costs included in finding a new job could be deducted as well. You can claim this tax deduction if the new job is in your current career field. Costs used in your search may include resume copies, dry cleaning, employment agency fees, certification or classes and business travel expenses.
Put enough time to prepare
Probably the most crucial tip is to have a good schedule in preparing everything you need in filing your taxes. Put enough effort and time to manage your taxes before the deadline to avoid having a panic attack or having to deal with some huge stress. Southbourne Group wants you to be responsible and organized on the subject at hand.
Make sure to have the right calculations
Taxes can be sensitive since even a small calculation error can lead to big mistakes. Check your work carefully and make sure that every detail is correct. There are also other ways you can make sure that your tax information is correct such as with the help of the built-in features of a DIY tax program, however, don’t entirely depend on such software because, at the end of the day, it would still be nice to check everything yourself.
Southbourne Group also suggests educating yourself on deductions and credits you might be qualified for. If you really need more help in filing your taxes but can’t hire a professional tax expert, there’s no harm in trusting some free resources. Don’t panic; just be responsible and organized always.