An Easy Guide to Doing Your Taxes For the First Time

Make Sure You Have All the Required Tax Documents

First thing's first: turn on our Tax Time playlist to set the mood that you can frickin' do this. Next, locate all your tax documents. Depending on how you generate income, you'll work with any number of the following forms that can be found in your mailbox, email, or online accounts:

W-2: reports salary and tax contributions from part- or full-time work
1099-MISC: reports income earned from freelance work or your side hustle
1099-DIV: reports dividends and distributions from investments
1099-INT: reports bank interest
1098-T: reports tuition payments
1098-E: reports student loan interest payments
1095-A: record of qualifying Healthcare.gov coverage
Expenses and Receipts: supports itemized deductions
Bank Account Routing Number: to set up direct deposit for your tax refund

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Choose a Tax Preparer

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In 2020, it's easier than ever to get your taxes filed quickly and at a reasonable cost. (Yes, you read that right. We pay to pay taxes.) The first time you file, it's best to go with a trusted adviser to avoid any costly mistakes. The good news is they handle all of the confusing work, and there are plenty of options:

Tax Prep Software: TurboTax, TaxSlayer, and H&R Block
Professional: Certified Public Accountant (CPA) and IRS Enrolled Agent
Free Low Income: IRS Volunteer Income Tax Assistance (VITA)

Pro tip: Don't wait until April (April 15 is Tax Day, which marks the official deadline for filing) to schedule with an accountant as appointments book up quickly. The sooner the better!

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Fill Out the Form

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The tax preparer (bot or human) will help determine the appropriate tax form for you. As a first-time filer, it will likely be the 1040EZ. You will manually input or digitally import your aggregate income, credits, and deductions. Deductions lower taxable income, and credits reduce the amount of taxes you owe. Each section will be calculated to conclude whether you can expect a tax return or a tax bill. May the odds be ever in your favor.

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Relax and Wait For Your Refund . . . Or Pay Your Bill

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You filed and paid your federal taxes — congrats! (Don't forget to file state taxes if applicable to you.) Becoming a taxpayer is a mundane coming-of-age experience that few people find enjoyable, but if you're owed a refund, then all of the annoyance is worth it. Now get back to living your life, and try not to spend that tax refund all in one place!

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