Tips for First Time Tax Filers

So you are on your own. First apartment, new car, just started the new job. And guess what! You have to do your own taxes for the first time ever. Now you could do what I did at first, beg mommy to continue to take care of your forms for extra visits and kisses, or you can step up to your new-found adult title and take care of it. But how do you go about it? What can you deduct? More helpful tips from TK!

Scary, scary. You want to get the most out of your tax refund. That’s an extra night out waiting for you in those forms! But don’t get too hasty. The first mistake a lot of us make is going the easy way out (and no, I don’t mean paying someone professional to do it, but if you have that kind of money, more power to you!) with the 1040EZ. This is great if you have no deductions or investments and need to do straight up income taxes. But a lot of you will miss out on the benefit of the student loan deductions and more. For those, you will need to put in the extra effort of the 1040A or the 1040 long form. They have a bit more involved, with more questions to answer and a few more papers for you to collect, but in the end, totally worth it when the check comes in the mail.

Don’t forget about the economic stimulus checks too! The government is trying to help out those of us in the middle classes with a small chunk of change. Make sure to check if you qualify. (also check out: Miss Out on the Stimulus? Here’s Your Chance!)

The nicest thing is that you are young and (if you are reading this) obviously have access to a computer and the internet. So, take my advice and e-file. There are a lot of great easy to use programs out there that will let you ”email” (sorta) your taxes right out. No trips to the mailbox!

For the best choices, check out Too Many Choices! The Right Tax Software and our Software Review sections on this site!

Tags: 1040 long form, 1040A, 1040EZ, e-file, economic stimulus package, first time tax filing, stimulus, tax deductions, tax reviews, taxprograms

Miss Out on the Stimulus? Here’s Your Chance!

There is some good news though for those who have been laid-off this year, have taken a pay cut, or missed the first stimulus. With the economy in a recession, many people are struggling to make ends meet. The government claims to be trying to help the public with their “economic stimulus package” that was meant to help middle and lower class Americans. Unfortunately, when the time came and the checks arrived, many people were sorely disappointed having received little or sometimes, no help at all.

You may get a second chance at your rebate thanks to a small loophole in the law! The government has issued a “recovery rebate credit” for those people who’s economic status has changed during 2008. Income, family size, and a few other factors (such as the birth of a child) go into consideration for the February enacted economic-stimulus law, therefore even if you weren’t eligible for the rebate in 2007, you may be able to receive the recovery rebate in 2008/2009. Cha-Ching! So don’t fret…a little bit of help may be on the way.

To check on your check (lol!) or change/update your address: visit the “Where’s My Stimulus Payment?” on the IRS website.

Tags: check, economic stimulus package, government, IRS, law, payment, rebate, recession, recovery rebate credit, stimulus