If you’re a Millennial with a complicated tax situation (student loans and working multiple side hustles can get messy), check out these eight tips for filing taxes when you have various financial responsibilities.
1. Don’t miss the deadline.
Don’t forget to file by the deadline! The IRS doesn’t mind if you need more time to pay your tax bill, but you have to let them know in advance. You can either request an extension or apply for a payment plan if you don’t have the cash to cover your taxes. The last thing you want to do, however, is ignore the situation and hope it will go away.
2. Choose the right tax program.
If your taxes are pretty easy, you might feel comfortable filing your own taxes using a program like TurboTax. You may even qualify for free filing services (if you earn less than 64,000/year).
3. Write off side hustle expenses.
If you earn income from a side hustle, you might be able to write off expenses you incurred through your part-time gig, like office supplies.
4. Maximize education tax savings.
If you have student loans, you could save money when tax time rolls around. Nearly all education costs are tax deductible.
5. Ask about the Saver’s Credit.
To encourage people to save money in a retirement account, the IRS offers a Saver’s Credit. This credit can significantly decrease your tax bill at the end of the year.
6. Deduct the cost of job hunting.
You might not believe it, but you can deduct costs related to hunting for a new job. If the new job is in your current career field, you can claim this tax deduction. Job search costs you might be able to claim include resume copies, dry cleaning, employment agency fees, certifications or classes, and business travel expenses.
7. Commit time to file.
Filing your taxes is never fun, but it has to be done. Block out time in your calendar, and commit to filing your taxes early so you don’t have to rush through the process. Filing your taxes might take some time, so you don’t want to leave it for the last minute.
8. Double check your calculations.
Small mistakes can cost you when it comes to filing your taxes. Double check your work, and make sure everything is accurate.
