The literal & specific steps towards being “DONE!” by Tax Day
Do you NEED to file taxes?
Student or not, the answer is YES if...
You clocked in at a company and earned a $12,000+ salary in the previous year (part- and full-time employees both get W-2s)
You were self-employed and earned higher than $400 (freelancer = 1099s)
Even if your parents claim you as a dependent (because they still give you financial support), if either of the above is true (go you!) you aren’t off the hook for filing.
Did you fill out the forms relevant to your situation?
If you need a refresher, we did the ultimate “If this...then that” all the tax forms breakdown here that makes it real when/whether a form is relevant to you. Going the extra mile on a few additional forms may even mean discounts on what you pay the gov (aka pay less!).
There are 3 main ways, depending on your style:
1. Retro - You like analogue and still send handwritten letters.
The free-est option. Visit IRS.gov. Download the forms relevant to your 2019 situation. Fill them out. If the gov owes YOU money (tax refund!) sit back and wait. If you owe additional taxes, send along a check when you mail in your forms or enter your debit/credit card through IRS’ online like you’re buying a sweater.
2. Outsourcer - You hire experts and throw money at the problem.
Accountants and CPAs can be pricey but worth it if you have complicated taxes. Meaning, if you have some complicated investments, own property, or have various streams of income, chances are an accountant can help. The more ways you EARN, the more complicated the taxes you PAY.
The MoneyGirls mindset:
If you hire an accountant (or use your parents’), you should know what they’re talking about, asking you about, and doing. Get smart and don’t outsource all brainpower.
3. Swipe-Happy - You do it all online, including ordering live ladybugs off Amazon (it’s real).
We’ve received repeated questions about TurboTax so clearly you know the deal. You’re not technically swiping but it’s basically a dummy-proof way of filing taxes.
Companies like TurboTax offer online filing — some even for free if your tax return is straightforward (simple salary from your 9-5 and easy investments).
Pro Tip: some platforms have great deals if you file early! The IRS starts accepting tax returns starting January 27th, with the deadline being April 15th “Tax Day”.
When we say dummy proof, we really mean it. Making it real - This is how step-by-step TurboTax gets to lessen the intimidation factor:
See? Basically a Buzzfeed questionnaire, but instead of finding out which Kardashian you are, you get your taxes filed. The system prompts you when to attach relevant forms and ask you questions to make sure you didn’t miss any.