Filing taxes for the first time alone

**cypher1** · 12-28-2010, 07:29 AM

I'm no tax expert like some of the others on this forum, but the main forms are either 1040EZ, 1040A, and 1040. The most common software or online services you usually hear about are H&R Block, Turbotax, and Taxcut. I personally use taxact.com when I do mine or my friends, and there are some free filings services I think if your AGI is under 30k.

If you don't have dependents, or you're own business, or even itemized deductions (ex.large medical expenses, property taxes, mortgage interest, PMI, large charity contributions, business expenses), then its even simpler. Besides W2s, you'll want factor in any interest from savings, capital gains. You can deduct interest from student loans/tuition fees but I don't see that being an issue with your filing. I'm guessing you'd use either the 1040EZ or 1040A.

I personally just e-file mine online, and save and print the PDF format for my records. There are others that will buy the software, and can import their previous tax data into this years filing. It's up to you. But I recommend save your money and do yourself. I have friends who pay $100+ to H&R who have the simplest filing with 1040EZ, where they would spend $15-20 to efile and get the same return.

**krantcents** · 12-28-2010, 07:40 AM

Originally posted by Coronet View Post

I'll be filing my taxes for the first time as an adult alone this coming April. I'm 23 and each previous year my parents filed for me as I was their dependent, but this year I have graduated, have my own job, and will be filing by myself.

Any tips/suggestions for filing to get my maximum return? During the 2010 year I was a student from Jan 2010 - Feb 2010 (I graduated in February) so I was wondering if that would impact my return in any way. Any recommended software that I should look into for my filing? I know it's a little early, but I just want to be on top of things.

Much thanks in advance!

Do you own a home? Are you self employed? If not, you will probably use the standard deduction. Some mutual funds like fidelity has subsidized tax software. Do you have student loans? If so, don't forget to report the interest. Definitely set up a 401K deduction. Good luck.

**jIM_Ohio** · 12-28-2010, 08:46 AM

You need to make a decision... do you want to be "master of your tax domain" or hire someone to be your master?

I have used turbo tax the last 15 years and I have a "never again" story which tells me I will either hire someone, or educate myself to do it... because TT has some flaws and it's not always right (with regard to portions of the tax code). My example is with HSAs, previewing the tax return and tax planning year over year.

When I was young TT worked just fine. As I married, bought and sold houses, stocks and similar I found many problems with the interface (I knew what I wanted to do, but TT had its own way which was not straight forward for someone which knew what they were doing).

Many people will tell you the $200 they pay for someone to prepare return each year is money well spent.

**cypher1** · 12-28-2010, 09:02 AM

Originally posted by jIM_Ohio View Post

Many people will tell you the $200 they pay for someone to prepare return each year is money well spent.

While I agree with that price for peace of mind, I think it depends on how complicated one's tax situation is, especially as we get older for life changing events and future investments, etc. I'm just saying for others with simpler deductions, and technology making it more user friendly to guide us and file, there are other options for others to save money. Of course, I don't take tax subject/fear of audit lightly either, but I'll take the risk of "master of my tax domain."

**MonkeyMama** · 12-28-2010, 09:17 AM

I presume you have a simple tax return. I would just e-file online using Turbo Tax or Tax Cut. (They may use different names for their online versions - google H&R and Intuit). You might have an education deduction or credit, but the tax software would walk you through that. If your income is low enough, there are some free e-file options. Again, just google "free e-file" to find the details. The free e-file would not cover your state though. Keep in mind you may have to file with Federal and state. (Depending on your state, of course).

@Jim - I would just buy professional software. Turbo Tax is designed for those who know nothing about taxes. It might take me hours to do a TT return when I can do it in 10 minutes using professional tax preparation software.

**Slug** · 12-28-2010, 09:33 AM

Given the simplicity of your situation, you might just go to your local library and pick up the paper forms to see if you can do it yourself. TurboTax or a similar program would be the next best slightly more expensive option. Do not pay full price for TT as there are a huge number of banks, brokerages, and credit unions that offer discounts on it over the web. Check there first.

**Coronet** · 12-28-2010, 10:09 AM

Thanks for all the suggestions. For further information I am:

- 23, single
- No student loans
- Will have to file for interest on mutual funds, money market accounts, cds, etc.
- No home
- No business
- No children

I'll look into Turbo Tax!

I don't know much about filing for taxes so the most basic system for me will probably work.

**cypher1** · 12-28-2010, 11:18 AM

You could always go to Internal Revenue Service for updated information. Here is another useful site I just googled:
1040.com - Which Form to File

As for interest, in the next month or two you should receive various annual statements like 1099INT and others noting your gains. Or you can always look up online through bank. In your case, filing online is pretty cheap, like TT, HR. I personally use taxact.com for under $20. For your situation, I agree with not actually buying the software for PC, but thats your call.

**jpg7n16** · 12-28-2010, 01:38 PM

I'm 25. I do my taxes with TurboTax.

For the investments, it can auto import from my investment accounts at Fidelity. Insta fills out forms, so I've got nothing to do.

This past year, I held some REITs, which would be a pain in trying to decipher the forms for taxation. Auto import caused me no issues.

Overall user interface was smooth and easy. E-file and get my return shortly after. And it only cost like $30 or $40. Much cheaper than professionally done. (I'm lookin at the site, and it seems like it's a bit more expensive for states with state income tax. I'm in Texas, so I never have to worry about that - though it's prob still cheaper than a CPA)

I plan on using it again this year.

**kork13** · 12-29-2010, 01:08 AM

I did it with automatic programs for a few years, until the IRS sent me a "love note" saying that it had all been totally wrong (to the tune of over $1000 against my then-college student wallet). Since then (I think 2 years ago), I've done them entirely on my own. I am by no means a tax expert, but by working through it carefully and methodically, at least I can have confidence that it's being done accurately. Plus, by doing them myself, I've actually been able to catch nuances that have saved me a couple hundred dollars that the automatic programs don't consider.

My recommendation: download the Form 1040, and the Instructions for the 1040 and all of the 'Schedules'. Work line by line through the 1040, referencing the instructions and various schedule forms as needed. Do them yourself, and you'll not only have faith in the product, but you'll have thoroughly learned about your own specific tax circumstances.

**Hector** · 12-29-2010, 01:50 PM

Filing tax return in your situation should be straight forward. I am in same situation as you are - I have very simple income to report to and nothing much that claiming itemized deduction is beneficial. I found taxslayer very easy when I efiled it. I found sending filing manually very educative.

**SnoopyCool** · 12-29-2010, 07:04 PM

H&R Block is doing free 1040EZs this year. It *seems* you will fall into that catergory, so you could give that a try.

Filing taxes for the first time alone