The IRS will begin accepting tax returns on Jan. 29, and for young adults who are about to file tax returns for the first time, the prospect can be intimidating. But here are some basics to help you successfully navigate your first stab at filing a tax return, according to CNBC.
Check your mailbox for tax forms, many of which are due to taxpayers by Jan. 31. That includes a W-2 from your employer and/or a 1099-MISC from any company you worked for as a contractor. And don't overlook tax breaks. In addition to deductions for student-loan interest or the education credits, there are other deductions you can take that don't require you to itemize. For instance, teachers can deduct up to $250 in unreimbursed classroom expenses.
Remember that in addition to your federal tax return with the IRS, your state tax return is due at the same time. Tax laws vary from state to state, which means they could offer breaks not available on your federal return, Hammer said. Some states, like Florida, impose no state income tax.
Meanwhile, don't wait until the last minute to file, and do it by April 17. If you end up realizing that you can't get your tax return in by April 17, you can file for a six-month extension. However, this only delays the due date for the return — not for any amount due.