What to know when filing taxes for the first time?

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What to know when filing taxes for the first time?

5 Tips for How to File Taxes for the First Time

  • Gather all of your tax documents.
  • Decide whether your parents can claim you as a dependent.
  • Consider relevant tax deductions and credits.
  • Don’t forget about your gig economy income.
  • File electronically.

How much does it cost to file taxes for the first time?

The average cost of having a professional prepare a federal Form 1040 income tax return for the 2018-2019 tax season was nearly $200 for the simplest returns, according to the National Society of Accountants. And the more complex your tax situation, or the more forms you need to file, the higher the cost can run.

What to expect when filing taxes?

When to Expect Your Refund Refunds are generally issued within 21 days of when you electronically filed your tax return or 42 days of when you filed paper returns. If it’s been longer, find out why your refund may be delayed or may not be the amount you expected.

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What is the first step in preparing your income tax return?

All it takes is some organization and time.

  1. Step 1: Gather Your Tax Documents. In order to do your taxes, you need to collect all of your tax documents.
  2. Step 2: Choose Between the Standard Deduction or Itemizing.
  3. Step 3: Pick a Filing Status.
  4. Step 4: File Your Taxes.
  5. Step 5: Get Organized for Next Year.
  6. File Your Taxes.

Is TurboTax good for filing taxes?

Tax-filing options with TurboTax TurboTax is the most expensive option for filing taxes online, but offers a high-quality user interface and access to experts. It’s especially valuable for self-employed filers who use QuickBooks integration.

Should I file taxes if I make less than 12000?

The minimum income amount depends on your filing status and age. In 2020, for example, the minimum for single filing status if under age 65 is $12,400. If your income is below that threshold, you generally do not need to file a federal tax return.

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What is IRS refund?

Taxpayers receive a refund at the end of the year when they have too much money withheld. If you’re self-employed, you get a tax refund when you overpay your estimated taxes. While you might consider this extra income to be free money, it’s actually more like a loan that you made to the IRS without charging interest.

How do I prepare my own taxes?

10 Steps for Doing Taxes Yourself

  1. Understand the Filing Deadlines.
  2. Ensure You Need to File.
  3. Review Your Documents from Last Year.
  4. Gather All the Documents You Need.
  5. Choose Standard or Itemized Deductions.
  6. Add a State Tax Filing if Needed.
  7. Check All Your Forms and Data.
  8. Request an Extension if Necessary.

How do I prepare my tax return?

  1. Choose a Tax Preparer.
  2. Schedule an Appointment.
  3. Gather Your Documents.
  4. Round Up Your Receipts.
  5. List Your Personal Information.
  6. See If You Need an Extension.
  7. Plan Ahead for Any Refund.
  8. Find Last Year’s Return.
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Is doing your own taxes Hard?

Filing your taxes yourself doesn’t have to be difficult. If you follow these steps and file via a user-friendly tax software, you can complete your returns quickly. But doing taxes alone on paper can be overwhelming, so get some extra help from TaxAct. Get 25\% off* TaxAct services and start your 2020 tax returns today.