How to File Taxes for the First Time
Preparing your taxes for the first time can be exhausting. The important thing to consider is the standard deductions and the total exemptions. Compare these with your income, and if the latter is less, keeping your filing status in mind, you will be entitled to pay nothing in taxes.
Instructions
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1
For first timers, use form 1040EZ or Form 1040. This is simplest form to handle if you are a college student preparing your own taxes or unmarried and doing a part-time job. However, there are different forms available and it is important to choose the one which is applicable in your case.
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2
Before filling out the form, it is important to obtain your W2s from your work place. Your bosses will have completed the W2s by January 31 of the tax year.
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3
Start the tax filling process. You will need to fill your personal details such as name, address, social security number. There will be space on the form where you will be inserting this information. You will then need to provide your marital status – single, married etc. The next information will be based on your filling status.
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4
W2 will help you fill the necessary details on the form, such as wages, salaries, interest, dividends, and sale of stocks. It will determine your total income. Now, in order to calculate the gross amount or income, adjust all deductions such as teacher expenses, income, or any unpaid employment benefits. The outstanding amount will be your gross income, which will go in line 4.
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5
In the next line, that is 5, you will be writing about other people who can claim on your behalf. If there are any, fill the necessary information. If not, then enter the amount which is not subject to tax, depending on your marital status. Subtract the amount with the one you entered in line 4 to determine the taxable income.
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6
The following lines up till 10 will ask you to fill your credit or total payment balance. Add the necessary amounts and write the total in line 10. Depending on the amount, you will need to look up the value in the instructions or tax chart to check whether the difference will be your refund, or the payments you will need to make.
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7
In case that you can receive a refund, opt for the refund option that suits you. Whether you want the money directly deposited in the bank account or you want the cheque to be mailed to you. Sign the form and submit for return.
