Tax Tips for the Younger Generation

When you’re in your twenties, filing your taxes can seem like something you only have to do later. In truth, however, it’s really never too early to start filing and to start filing smartly for the future.

Know How Your Parents are Filing                        

First things first, you need to check in with your parents and see how they’re treating you. Whether they’re claiming you as a dependent or not claiming you at all, you need to know what the plan is. How they claim you will make a difference in how you should file, in what amounts, and various other factors.

Take Advantage of Free Filing

Filing online is the quickest and easiest way to get the return to which you are entitled. Making online filing even better, you can do it 100% for free if you take advantage of the IRS’ free software offer for those who earn below $60,000 per year. This software can walk you through how to handle your tax forms in just a few basic steps.

Deduct Mortgage Interest

Have you recently purchased a home? That’s not at all uncommon for people in their 20s. If you’ve made this common “20 something” purchase, find out if, in your case, your mortgage interest is tax-deductible- it often is. Even if it’s not, you may be able to take advantage of other homeowner-only credits, so check with the IRS and/or your accountant to learn what benefits you can earn just by being a homeowner.

Filing your taxes can be tricky. As a young person, there’s a lot to think about. But, if you can follow these simple tips and get help from a seasoned professional, there’s no reason that tax time can’t go well (and smoothly!) for you.