5 Tips For Taxpayer Newbies

The first step to filing your taxes is to make sure you have the correct documents. Depending on your particular situation, you will receive several types of tax forms, including:

• salary and wages (W-2)
• bank interest (1099-INT)
• dividend income (1099-DIV)
• mortgage interest (1098)
• tuition payments (1098-T)
• student loan interest payments (1098-E)
• receipts or other records that support any itemized deductions.

To offset the income you report on your tax return, you should claim either the standard deduction or

itemize deductions individually (property, charitable contributions, some medical costs, mortgage interest,

etc.) Many first-time filers will not itemize because they will not have enough itemized expenses, like

owning a home, to exceed the amount of the standard deduction. Generally, first-time filers will opt for the

standard deduction, which is based on your filing status.

For 2013, the amounts are:

• $6,100 if you're filing as single or married filing separately
• $12,200 if married filing jointly or qualifying widow(er)
• $8,950 if you qualify to file as head of household

The standard deduction can be as low as $1,000 for taxpayers who can be claimed as dependents. A higher standard deduction applies to taxpayers who are 65 or older and/or blind.

Filing taxes online can make it easier for DIY filers to receive their tax refund or pay owed taxes. If you are owed a refund, consider selecting Direct Deposit to ensure faster receipt. If you owe additional taxes to the IRS, make sure that you send your balance due payment by April 15, 2014 (filing deadline for tax year 2013) to avoid interest and penalties.

Your marital status on the last day of the year determines your filing status. If you were not married on December 31, 2013, you will file your 2013 returns as “Single” (unless you meet the requirements to file as “Head of Household”).