This year Tax Day was pushed back to July 15, 2020, but that doesn’t mean it’s not still coming. Tax season is typically the most stressful time of the year. Follow below for five tips for tax season every-twenty something should follow.
*Disclosure I am not an accountant or a member of the IRS. Before filing taxes or if you have any specific questions, please consult an accountant*
Know Your Tax Forms
The most common tax form is the W2; taxes are automatically withheld from your paycheck through your employer. The W2 is the simplest form, meaning it may be possible for you to file your taxes through a web program. I know a lot of twenty-somethings who are freelancers meaning they use the 1099 form. This means that taxes are not taken out of each paycheck, so set aside a certain percentage based on your income. Also, with 1099, you will have to file quarterly taxes.
File & Pay on Time
The IRS is not a beast to be messed with. You must allow yourself enough time to file and pay taxes before Tax Day. If you need an extension, submit a Form 4868 before July 15, 2020 (this year’s Tax Day). By filing this form, you are preventing the late-penalty fee that would typically ensure.
Decide if You Need Someone to File Your Taxes
Filing taxes is terrifying, and that’s why professionals are here. If you make under $53,000 or less, then you can use Volunteer Income Tax Assistance (VITA). This is a program set up by the IRS, and it is available in all fifty states! Check out VITA here! If you make over $53,000, source an accountant through personal recommendations!
There are fewer errors when it comes to filing taxes electronically, and the IRS lets you know when they receive your return.
Watch out for Scams
Tax season is also the season of scams. There are people out there who take advantage of the stress of tax seasons. Remember that the IRS will never call you about a bill, and they will never email asking about your username and password. Stay aware!
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