First Time Taxes?

Applied knowledge is power, and familiarizing yourself with the tax system as a first-time tax filer can help in relieving the anxiety you might feel when preparing and filing.   

For many first-timers, the tax system and process seem like a dark and scary place.  So many forms and rules to execute and follow that it can be overwhelming.   The good news is that most of the time, newcomers have a relatively straightforward process.  Without dependents, claims, or other deductions, a simple 1040 form is used.  If you think you don't want to file, it's always a good thing to do so as you might be eligible for a tax refund.  Your employer is required to withhold taxes on wages that are earned in the local taxing jurisdiction and are directly remitted to the government.  If the employer withholds too much tax, a refund is issued, making it beneficial to file. Also, if you don't file and you meet the requirements for doing so, you're subject to failure-to-pay penalties.

Establishing whether the income you've earned is something you must report is an excellent first step. Based on criteria such as age and marital status will determine if your income is subject to filing.  All the particulars can be found on the 1040 Instructions 2019, which details the different filing statuses and the corresponding income parameters.  

Becoming familiar with the tax system will remove the scary mystique. It will also help you establish a file of organization so you can keep receipts and other deductions in order, so it's readily available on tax day!

The best news is that managing your taxes is not something you have to do alone.  The professionals at Lewis CPA, are on hand to assist in any and every way.