Filing your taxes for the first time can feel overwhelming, but it’s a significant step into adulthood. Here’s a comprehensive guide to help you navigate federal income tax filing as a newcomer.
Understanding Your Filing Requirements
If you were a student last year, under twenty-four, and supported by your parents, they might still claim you as a dependent on their taxes. Check with them before filing your return to avoid confusion. Even if your parents claim you, you may still need to file a return. As of 2019, if you were single and your earned income as a dependent was more than $1,100, your earned income was more than $12,200, or your gross income was more than $1,100 or $350 plus your earned income up to $11,850 (whichever was greater), you must file.
Tax Filing Methods
There are various ways to file your taxes in Oregon, each with its own pros and cons.
By Hand
The traditional method involves filling out forms by hand, which is cost-effective but time-consuming. Ensure accuracy in your calculations, as math errors are common. Note that the IRS now requires most returns to be e-filed, making this method impractical for most.
IRS Free File
You can file through the IRS website for free if your adjusted gross income (AGI) is under $69,000 (as of 2020). The IRS partners with firms to help prepare and file individual tax forms securely and at no cost. Access these services directly through the IRS Free File website to avoid any fees.
Tax Preparation Companies
Companies like Liberty Tax, H&R Block, and Jackson Hewitt offer tax preparation services. Fees vary, but a simple federal and state return typically costs around $120. Charges increase with additional forms.
Tax Preparation Software
Software like TurboTax simplifies tax filing. Input your information, and the program prepares your taxes, offering both print and e-file options. The cost of basic software is about $50, with additional charges for state tax preparation. These programs often include an “interview” process to guide you through filing.
Essential Documents
You will need your W-2 form from your employer, which is a wage and tax statement. Other necessary documents may include interest statements, mortgage statements, and any other official-looking forms received from January to February.
Filing Deadlines
Plan ahead and file before April 15th to avoid delays. E-filing typically provides faster confirmation from the IRS, but ensure you have all required documents to prevent any issues.
Takeaway
Filing your taxes for the first time in Oregon is a significant milestone. With the right tools and knowledge, you can confidently handle this annual responsibility. Remember, it’s a manageable process, and there are resources available to help you.
Need Help Filing Your Taxes?
If you need assistance, contact an experienced tax attorney at The Law Office of Jason Carr. Schedule a consultation today to ensure your taxes are filed correctly and efficiently. Call us at 214-800-2366 for expert guidance.
