Filing Your Taxes For The First Time? Here Are A Few Tips To Consider

Denver income tax preparation

Filing tax can stress out a lot of people and especially first-time filers. If you have landed your first job and were wondering why the salary you negotiated is oftentimes different from that which comes to your bank account, tax deductions are usually the reason for it.

Despite the ongoing pandemic, the Internal Revenue Service (IRS) is keeping the deadlines for filing returns the same as they do every year. Filing your taxes on time will ensure that you don’t miss out on the tax refunds this year. Be aware of the deadlines and give yourself enough time to avoid any last-minute stress.

Pay the tax that you are responsible for and don’t get stuck with a large bill. Please keep in mind a few tips, to ensure that your first filing experience is relatively smooth.

Tax Bracket

There is no standardized tax rate in our country. There are different tax slabs based on your income which is used by the IRS when calculating the tax that you owe them. Tax rates also differ if you are single or married and can range from 10% in the low end and up to 37% for higher-earning individuals.

Calculation Blunders

Check all your math and ensure that all your simple calculations are in order. Avoiding errors will save the accountant at the IRS, time and in turn, will help you in getting your refund faster.

Deductions

The tax burden on income is high and tax deductions are a way in which you can save a lot of money. Deductions can reduce your tax bill or can offset it by a few years. A few examples of tax deductions that will save you money are:

Retirement Investment and Savings
Losses on Investment
Contributions to charity
Medical Expenses
Property Tax

Ask for Help

Knowing it is your first time, asking for help from a professional is your best option. A knowledgeable professional tax consultant will be able to answer all your questions and will also make sure that all the right tax deductions are in order.

We at Fast Action Taxes are the best tax consultants in Denver. Our accountants will help you with the preparation of tax filing, the actual filing of your taxes and also assist you with the rulings and regulations at the IRS.