Navigating the world of taxes for the first time can be daunting, but with the right guidance, first-time tax filers can approach the process with confidence. Thought leaders have shared essential tips for first-time tax filers, emphasizing the importance of organization and understanding the basics. Key advice includes gathering all necessary documents early, familiarizing oneself with available deductions and credits, and considering the benefits of e-filing for accuracy and speed.
Stay Organized And Double-Check For Accuracy
As an Underwriting Assistant in the insurance industry, I know how important it is to be thorough with financial documents.
My best advice for someone doing their taxes for the first time is to stay organized–gather all your documents (W-2s, 1099s, deductions, etc.) before you start.
Double-check everything for accuracy to avoid mistakes that could delay your refund or cause issues later. If you’re unsure about anything, don’t hesitate to use tax software or consult a professional. It’s better to ask questions now than fix problems later!
Shai Compton, Underwriting Assistant, NOW Insurance
Avoid Last-Minute Stress With Early Preparation
The first time doing your taxes can feel overwhelming, but it doesn’t have to be if you approach it the right way. The biggest mistake people make is waiting until the last minute. Give yourself time to gather all the necessary documents–your income statements, deductions, and any relevant expenses. Organization is key, and the earlier you start, the less stressful the process will be.
Another important thing is knowing what deductions and credits you qualify for. A lot of first-time filers miss out on savings simply because they don’t realize they’re eligible. Whether it’s education credits, work-related expenses, or even deductions for student loan interest, these can make a big difference in what you owe or get back.
If your taxes are simple, online filing tools can be a great help, but if you have multiple income sources or investments, it’s worth speaking with a professional. Even if you don’t need an accountant every year, getting early guidance helps you understand the process better and avoid costly mistakes.
Taxes aren’t fun, but they’re manageable. Stay organized, educate yourself on what you can claim, and don’t be afraid to ask for help when you need it.
Brandon Thor, CEO, Thor Metals Group
Use Tax Software For Stress-Free Filing
Tackling your taxes for the first time can feel daunting, but a methodical approach can simplify the process significantly. Start by gathering all necessary documents such as your W-2s, 1099s, and receipts for deductions like educational expenses or charitable donations. It’s also helpful to use a reputable tax software program; many are user-friendly and designed to guide beginners through the process step-by-step, ensuring you don’t miss out on any potential deductions or credits.
One common mistake first-timers make is waiting until the last minute to begin. This can lead to errors or missed opportunities for reducing your tax liability. If you’re ever in doubt, don’t hesitate to consult with a professional tax preparer. They can offer personalized guidance tailored to your specific financial situation, which can be particularly helpful if your taxes are more complicated than average. As you get ready to file, remember that staying organized and proactive are your best tools for a stress-free tax season.
Alex Cornici, Writer, Insuranks
Choose A Person Over An App For First-Time Taxes
I write this hoping that someone will see and learn from my mistake! If you are doing taxes for the first time, work with a “person” and not an “app”. Apps that help people with filing were built by people who understand taxes, and so they care more about you being a repeat customer much more than they do giving you solid advice based on your personal situation.
And given this is your first time, you do want to work with a person even if it is someone with a tax preparation company. You can have a dialogue about your future, upcoming changes in tax codes, and ask anything you want to quickly get an answer.
When you get a better idea of what is really happening when you file taxes, that may be the best to start using an app.
Steven Lowell, Sr. Reverse Recruiter & Career Coach, Find My Profession
Read more personal insights from our roundup experts on our finance page.
