Taxes.. i'm so lost

[bandelove]

I'm 22, just graduated college, about to give birth in 3 weeks, made 26k last year and need to get my taxes done. My mom has always done my taxes but i have never gotten any money back or paid so i dont know what on earth she did. She has been claiming me in the past but i've been on my own for 2 years now and she hasnt paid for a thing for me. I asked her ifi got anything back or had to pay and she doesnt know and has to check. Sounds shady i know. ANYWAYS... I want to do my taxes on my own but dont know whether i should buy turbo tax or do it online thorugh the irs for free.
I'm not married. I have 2k in student loans but i'm in a grace period so i dont have to pay yet. i have 19k in savings. No car payment. No mortgage. Any advice to be given is much appeciated.

[kv968]

If you're out of college then your mother can't claim you as a dependant anymore. Since you made less than 52k you can file your taxes for free. Here's a link to go about it:
IRS freefile

It doesn't sound like you have much going on deduction or complication-wise so it shouldn't be too hard. Just relax, get your paperwork and check out the site. If you don't feel comfortable using any of those, you could always spend some money and use Turbo Tax or something like that. Although you probably shouldn't have to. Just remember that even most of the free sites will charge for filing a state return. Good luck!

[jIM_Ohio]

Originally Posted by bandelove

I'm 22, just graduated college, about to give birth in 3 weeks, made 26k last year and need to get my taxes done. My mom has always done my taxes but i have never gotten any money back or paid so i dont know what on earth she did. She has been claiming me in the past but i've been on my own for 2 years now and she hasnt paid for a thing for me. I asked her ifi got anything back or had to pay and she doesnt know and has to check. Sounds shady i know. ANYWAYS... I want to do my taxes on my own but dont know whether i should buy turbo tax or do it online thorugh the irs for free.
I'm not married. I have 2k in student loans but i'm in a grace period so i dont have to pay yet. i have 19k in savings. No car payment. No mortgage. Any advice to be given is much appeciated.

Do you have your W-2's? This shows how much you made and how much was taxed.

Online reference before is good.

I use turbo tax (quicken/intuit). You buy it at office depot/ office max type stores, costs $50 or so (buy the one with state product). If you own a home, the edition I use is Turbortax deluxe deduction maximizer (it's blue and gray box).

Turbo Tax (TT) is easy. Step by step... and has done my taxes for last 10 years. If you need help, ask.

[bandelove]

If i paid someone would i have a better chance of getting more back?

[jIM_Ohio]

Originally Posted by bandelove

If i paid someone would i have a better chance of getting more back?

Are you using the free one online? It appears you edited your question.

Changing jobs is different than a promotion. It was going to ask you about moving expenses and expenses for a job search (which are deductable).

If there was a question about itemizing, say "no" and try that (the non itemized form is shorter).

Give this 3 hours or so.

I do my taxes early (Jan -Feb), spend about 3 hours or so

Then I come back a few weeks later and finish. Check things and think about things.

You have today and tommorrow... so get started today (input salary and taxes) and answer the mundane questions tommorrow.

jIM

[kv968]

Originally Posted by bandelove

If i paid someone would i have a better chance of getting more back?

I doubt it but you may. Although even if you do get a little more back, you'll probably end up paying more for the service than the extra you get. I don't know you're entire situation of course, but it doesn't sound as if you have anything going on that would make paying someone to do it more advantageous.

[scfr]

It can be quite intimidating to do your own taxes forthe first time! But it is worth the time and frustration, because not only will you save the money of paying a preparer but you will also be forced to take a step back and look at your financial situation, and that is a very good learning experience.

I am a big fan of Turbo Tax, but they are by no means the only option.

Good news for you: Given your income, you are probably eligible to use Turbo Tax for free on-line for your federal return! Here is the link: Intuit Tax Freedom Project

But you may not want to go with Turbo Tax. If you have to file a state income tax return, you will probably want to use one of the free programs that includes your state's return. Here are the states where you can file free with Turbo Tax if you qualify for free federal filing: AL, AR, AZ, GA, ID, IA, KY, MA, MI, MN, MO, MS, MT, NY, ND, NC, OK,OR, RI, VT, WV.

If you do not live in one of these states, you will want to visit the link kv968 provided and choose one of the companies where your state is included for free.

Just start doing the return early in the day (give yourself several hours to work if you need it). If you get frustrated and want to give up, give yourself a little break and go out for a walk and get some fresh air! Good luck to you! Please let us know how it turns out.

[jIM_Ohio]

Originally Posted by scfr

It can be quite intimidating to do your own taxes forthe first time! But it is worth the time and frustration, because not only will you save the money of paying a preparer but you will also be forced to take a step back and look at your financial situation, and that is a very good learning experience.

I am a big fan of Turbo Tax, but they are by no means the only option.

Good news for you: Given your income, you are probably eligible to use Turbo Tax for free on-line for your federal return! Here is the link: Intuit Tax Freedom Project

But you may not want to go with Turbo Tax. If you have to file a state income tax return, you will probably want to use one of the free programs that includes your state's return. Here are the states where you can file free with Turbo Tax if you qualify for free federal filing: AL, AR, AZ, GA, ID, IA, KY, MA, MI, MN, MO, MS, MT, NY, ND, NC, OK,OR, RI, VT, WV.

If you do not live in one of these states, you will want to visit the link kv968 provided and choose one of the companies where your state is included for free.

Just start doing the return early in the day (give yourself several hours to work if you need it). If you get frustrated and want to give up, give yourself a little break and go out for a walk and get some fresh air! Good luck to you! Please let us know how it turns out.

One additional note, Turbo tax will compare returns from one year to the next. The first year is hardest- you have to go thru nearly every section.

Every other year you can visit only the sections you had data in the previous year.

Meaning If you take a small business deduction one year... it will automatically prompt you the next.

Meaning if you have dividend interest, it will prompt you for that next year

If you do not have a hybrid car, you go thru that section the first year, and can skip it every other year.

I am sure this is not unique to TT, but a reason to use the same tax software over and over again.

[Ima saver]

Since i don't know how to use a computer, I just go to H and R block.

[creditcardfree]

I would try the free online programs as suggested and see how it comes out. If you get confused as you go ask us here. If you try it and you aren't confident in the results I would try H & R Block.

Try the online program soon, so you have enough time to work through it before tax filing deadline.

I also don't think you'll get any more back by going to a preparer. The only time that might happen is when someone has a small business or has unusual items they can itemize.

Next year when you file your taxes you will claim your baby as a dependent and get a tax credit of $1000. Best of luck to you.

[jIM_Ohio]

Originally Posted by Ima saver

Since i don't know how to use a computer, I just go to H and R block.

not knwoing how to use a computer and posting on this board is an oxymoron.

LOL

[Ima saver]

I guess I am an oxymoron. I never worked anywhere where they had computers. In my last real job, we did everything by hand. Then I moved to the mountains and the only job I could get was waitress. My dh bought me this for christmas 2 years ago and I have never had anyone show me how to use it or what is what!! Dh can't use one either!!

[jIM_Ohio]

I envy you living in mountains. I'd like to retire to CO... we vist there once in a while. I love to ski.

[bandelove]

Well i finished, it didnt take very long actually. As of now it is saying ill get back a little over $1500. I'm not sure what else i can really deduct besides school and automobile. I use my vehicle for work and put about 6000 out of approx 9000 miles driven for the year and it doesnt look like that helped with how much i'm getting back. My sister mentioned a bunch of random things i could write off such as registration and donating to good will. Given what i've told you so far do you think what i'm getting back sounds about right?

[jIM_Ohio]

If you have a mortgage, have you deducted the home interest.

Using a car for work is not "necessarily" reimbursable. I put 6-9 k miles on my car to go to my day job, and I cannot deduct that expense.

I do travel as a consultant for a side job and that is reimbursable as a business expense (but only miles to second job).

wife drove 2550 miles and was reimbursed $.375 per mile, we claimed the other $.04 as an unreimbursed business expense.

The biggest deductions are mortgage interest, SEP IRAs and business expenses (for a business you own).

[anonymous_saver]

Since you have $2,000 in student loans you should have received a form about your student loan interest (it wouldn't be much for $2,000, but it would be something!

Also, this year if you paid for the federal excess tax (I think that is what it is called) on long distance phone service, then you can claim a $30 deduction. Sorry that may be confusing, but I don't have my taxes right next to me right now.

Also for 2007 since you will have a child (by the way, congratulations!) you should probably increase your allowances on your W-4.

[scfr]

Originally Posted by bandelove

Well i finished, it didnt take very long actually.

Congratulations! Good for you! Did you use Turbo Tax or another free on-line program? Was it easier than you expected?

As far as whether the amount you are getting back is correct, it should be as long as you correctly entered all of the information the program asked you for.

[Homebody]

My single daugher uses Turbo Tax and she is self-employed and owns a house. She just answers the questions!

I woule think if you held a regular job with a W2 your taxes would be very easy.

Congrats on the baby. Now you really have a reason to get your finances in order!

[creditcardfree]

The amount is probably right, but there isn't really a way for us to know for sure without seeing everything you input. Using a tax program helps tremendously. Good job getting it done so quick.

Will you be saving the money or paying off debt with your refund?

[bandelove]

What do you suggest i increase my allowances to? My salary is 30k but i'm getting a 6k increase at the end of March. I think right now i'm claiming 1. As for doing my taxes online i ended up using TaxACT and it was easier than i was thinking it was. Pretty straight forward. I cant claim my mileage if i was reimbursed right? I have 2 office locations that i have to travel to 4 times a month and what they reimburse me pretty much covers gas and enough left over for a new set of tires each year.

Also, I have a subsidized loan and just graduated in in Dec so i havent had any interest build up yet since i dont have to pay until around may. I paid off about $2500 as soon as i graduated and i'll pay off the last 2k at the end of my grace period. I'm a saver so i'll be putting whatever i get back from my refund into my ing account.