Last month, TurboTax did a series of tax tips for 18-25 year-olds called “These Aren’t Your Parents’ Taxes.” These tips are short, sweet, and to the point – and they may be helpful even if you’ve already filed your taxes for this year. So if you’re in that age bracket, give them a read:
- Education Credits – If you’re no longer being claimed as a dependent, but you’re still in school, pay attention to these credits!
- Student Loan Interest and Do I Really Need to File? – Once again, if you’re not being claimed as a dependent and you paid student loan interest, there may be a deduction for you. And if you didn’t make a lot last year, you may not need to file… but you also may be eligible for a refund, so you should at least go through the process and see.
- Moving Expenses – The rules for this are a little wacky, so read this tip carefully to see if it applies to you.
- Individual Retirement Account (IRA) Deduction – Retirement may seem a million miles away, but contributions now may be tax-deductible, so you could help yourself now and later by making contributions ASAP. (Also, you’ll put compound interest to work for you!)
- What Paperwork Do I Need In Order to File My Return? – If you haven’t done your taxes yet, this is a good guide to what you’ll need to have in front of you before you start.
- 401(K) – Just a reminder from me (Stephanie): if your company offers a 401(K) with matching contributions, and you’re not contributing to it, you’re literally saying no to a part of your salary. Do not turn down free money! Sign up today!
- Your W-4 – What is this strange piece of paper? What are exemptions? Definitely useful info whenever you get a new job. I also wrote about filling out your W-4 in my “Graduating?” series.
- Renter’s Credit and Take Home Pay – Some states give you a tax credit for renting? I didn’t even know that. Sweet! Also, a reminder that your gross salary is not how much money you’ll get, and a breakdown of the taxes that will be taken out.
All-in-all, some sweet tips from TurboTax. Happy taxes!
Anyone have any additional tax tips to add for the college crowd or recent grads?