Tax time for everyone can be challenging, and since we’ve now passed mid-year and are entering into the end of the year, it’s time to start thinking about getting organized for tax season. For millennials, this can be especially challenging. Many millennials are new to the workplace, having just started their careers or are on the lookout for the job of their dreams. Since they have a lot on their plate once college is over and reality sets in, it may be a safe bet that financial planning is not on the top of their list. Most millennials are at a challenging point in their lives, either they’ve:
- Just graduated from college
- Just started their first job
- Started to invest or save for retirement
- Started a side job just to make ends meet
These millennial traits make for different tax situations. It can all be overwhelming, whether you’ve filed your taxes before or if this will be your first time, but early preparation and planning can help you through this new time in your life. Here are some tips from the experts.
Pull together all the documents you might need. Look out for paperwork in the mail or your email and keep it in one place. If you run a business, get the accounting records too. Always remember that you are required to report all income. Keep track of income from service jobs and freelance gigs; if you track it you can control it. Keep all your W-2 forms from employers and the 1099-MISC forms for all your freelance projects. If applicable, ensure that you have the necessary forms for bank interest received and student loan interest paid as well. Starting your preparation now will make the beginning of next year less hectic. Organization is always key.
Nowadays, there are many online software programs to help you with your taxes; however, hiring a professional is still recommended, not only with standard tax returns, but also with complicated tax situations. You are probably at that point in life where change is common. You could have children, get married, buy a home or change jobs. The more change you have in a year, the more complicated your taxes become, and having a real, live accounting expert can help to prevent mistakes and get the refund that you deserve.
If you have hired someone to do your taxes or you are using a software program, it is always a good idea to go through all forms for accuracy before you submit them. The biggest mistake you can make is assuming that software is foolproof. Go through all entries to make sure you do not have typos. Do some research on deductions and credits that you could be qualified for. Given most millennials have just graduated or they are still students, they could take advantage of the student tax credit if they are in their last year of school.
Your Job & Taxes
Expenses, such as job seeking expenses, moving expenses and unreimbursed employee business expenses are just some categories of expenses that could earn you substantial deductions on your tax return. It is worth consulting with a licensed tax professional to see if you can take advantage of these deductions.
It is never too early to start preparations. The beginning of the year is a hectic time. The holidays have taken a toll on your finances, and suddenly it’s time for taxes, and you’re frantically trying to get organized amongst a heaping pile of tax forms, receipts and other financial documents. Alleviate the stress by getting organized early. Start now. You’ll be thankful that you did once January rolls around.
Hiring an accounting expert can help reduce stress and ensure that you’re going about your taxes the right way. The last thing anyone wants to do is make a mistake on their taxes and have to pay for it later. Now is the time to get organized. Contact our experts today for help. Call (855) 851-8318 or visit www.bodineperry.com.