Before You File Your Federal Income Taxes

As a teenager getting a job and earning money is seen as the first step to self sufficient adulthood. Anxious to start building riches, like many adults, paying taxes is an unwelcomed requirement of citizenship, But fear not, Uncle Sam provides resources to make filing your federal taxes easier. Credits, deductions, exemptions oh my!. For many employees, employers withhold taxes, sometimes more than owed. While Self-Employed, Independent Contractors, and small business owners responsible for making direct payments, may owe tax. Keep in mind it is important to file and pay on time to avoid penalties and interest. (Stay informed of the latest tax changes)

First Things First:

Check to see if you need to file. Even if you are not required it may be advantageous to file. Be sure you have he necessary documents such as Personal information Social Security number or individual tax ID number (ITIN) for you and anyone else on your return. If you are looking to receive a refund and would like to utilize the speedy delivery of direct deposit you will need your Bank account and Routing numbers to get a refund by direct deposit or pay taxes you owe. And you will need your adjusted gross income (AGI) and exact refund amount from last year’s tax return, if you filed. Please be sure to check and ensure

• Your name on record with the Social Security Administration (SSA)

— notify SSA if you changed your name

• Your current address —

notify the IRS if you changed your address

• If you e-filed last year, your self-select PIN
• Your IP PIN if you received one from the IRS

People or organizations that paid you during the year are required to report the payments to the IRS on an information return. They must file these forms with the IRS and send a copy to you. You should get them electronically or by mail in January or February. These forms report income you received during the year. Forms W-2 or a corrected W-2 show your wages from employers. Here's what to do if you didn't get a W-2. Form W-2G for lottery and gambling winnings and Forms 1099 show other types of income.

The most common are Form 1099-K for payments from payment cards and online marketplaces. Form 1099-G for government payments such as unemployment benefits. Or Form 1099-INT from banks and brokers showing interest you received. Form 1099-DIV for dividends and distributions paid to you. If you are a an indepent contractor, self-employed or provide freelance services in the gig economy you may receive Form 1099-NEC. Benefits like Retirement plan distributions or pensions or annuities on Form 1099-R and Social Security benefits on Form SSA-1099 . You may also have received Form 1099-MISC for other miscellaneous income. You can access Form 1095-A, Health Insurance Marketplace Statement, lets you reconcile advance payments or claims and records of digital asset transactions if you did not receive an information return for those

After gathering your pertinent Personal Information you will need to make sure you have the documents for credits or deductions. Such as Childcare or dependent care expenses. If you itemize your deductions can deduct and receive credit for:

Home mortgage and property tax records.

Donations to charity (if you itemize your deductions)

Health savings account or flexible spending account contributions

Healthcare expenses (if you itemize, special rules apply)

Retirement contributions and If you're a student or teacher, receipts for books, tuition and other education expenses

Self-Employed Documents from side jobs

• Statements from banks, payment apps, card processors or online marketplaces
• Checks paid to you
• Receipts and mileage logs for travel, gift and car expenses
• Records of deductible office expenses
• Estimated tax payments
• Other business income and expense records

Find more self-employment records you should keep

Get credits and deductions
File your return
Get your refund
Pay taxes on time
Be ready to file taxes next year