5 Last Minute Tax Tips for Millennials
Are you ready for tax time? If the answer is no, then you better start getting ready because the deadline for your taxes is just a few weeks away!
Fortunately, that’s plenty of time.
If you are a Millennial, you might be filing your taxes for the very first time, or perhaps this is only your second or third time filing taxes.
Filing your tax return is one of those financial rites of passage and while it’s not always fun, it’s a very necessary part of life.
As you get ready to file your taxes, here are some last minute things to keep in mind:
1. Get Your Refund Faster by E-filing with Direct Deposit
Chances are that, as someone relatively new to the job market, you have a tax refund coming. Perhaps you don’t owe money, or you have had enough withheld from your paycheck that you expect a tax refund.
In any case, you can get your tax refund faster if you e-file online and opt to receive your tax refund via direct deposit.
Millennials are known for their tech savviness and electronic filing makes sense.
2. Have All of Your Tax Forms Together
Before you sit down and file your taxes, make sure you have all of your tax forms like W-2s and 1099s together.
Don’t forget about that side job you did last summer. You may have received an additional 1099.
TurboTax will help you easily and accurately prepare your tax return by asking you simple questions about you.
3. Triple-Check if You’ve Had a Life Event
Millennials often see changes in their lives; after all, they are just getting started and have a lot going on.
When you have life events like getting married or having a baby, don’t forget these life events have an impact on your taxes.
Fortunately, if you use TurboTax, it will ask you simple questions like, “Did you get married?” or “Did you have a baby?”
4. Consider a Couple of Last-Minute Tax Deductions
In order to take advantage of most tax deductions, you need to have acted before the new year. Fortunately, there are still a few things you can do to impact your taxes.
First, it’s not too late to contribute to a Traditional IRA. If you haven’t maxed out your contributions, consider making a contribution.
You can make a contribution up until the day you file by April 15th that may deductible on your taxes you’re filing for last year.
5. Start Organizing for Next Year
Finally, now that you’ve got through this year, it’s a good idea to organize for the coming year.
Start a file for documentation, such as business receipts and charitable donation receipts.
Plan ahead so that you can find out what deductions and credits you are likely to qualify for. That way, you won’t be scrambling next year.
The best last-minute tax tip is to learn from your mistakes, and organize better for next year.