Doing taxes is one of the most important things an adult should know how to do. This is the first edition of our series, “How To”, where we guide you through essential skills an adult should know! If you can’t afford an accountant, doing taxes for the first time may be overwhelming as a young adult since school didn’t quite prepare you for it. To start off, what are taxes, and why do we have to pay them? Well, taxes are payments you are required to pay, they are essential to the development of our country and communities. The money goes to several things, which is why we all pay them. They can pay for the work of our public servants such as law enforcement, firefighters, and medical services.
To ensure that your taxes are handled efficiently, here are some tips that can help you through such an overwhelming experience. One of the first things you can do is create or recover your account information at IRS.gov. This website is one of the official ways to pay taxes to the government. Second, you should gather and organize your tax records in an easy to read and find folders or files. Being organized with this can help in making this an easier process if you are doing it by yourself. Your tax records should include Form W-2 from your employer(s). As well as the 1099 form from your bank that includes all of your information. You should also include your Form 1099-K, and 1099-MISC, W-2 as another way to show your proof of income if you work as someone of transport or in delivery services.
Next, you should check for your Individual Tax Identification Number (ITIN) . This is important to ensure it is not expired. If you have an expired ITIN you will not be able to receive a refund if you are expecting one through the IRS (Internal Revenue Service) until you renew your ITIN.
Finally, withholding is an efficient way to pay taxes as it extracts money from every paycheck with enough time you can estimate the amount your taxes cost and already have an amount prepared so you can pay before the deadline. If you happen to prepay more than the amount of your taxes, then it means you will receive a refund.
Adulting may not be the easiest, but it’s something we all have to come to terms with as we grow up. Facing that truth about the world, such as the reality of paying taxes and having other payments, all while balancing a full time job may sound nerve-racking as an up-and-coming young adult, but The Paw Print Press will help you out with adulting with a weekly “How To” feature, so stay tuned for more 101 to adulting!
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