Tips for the First Time Tax Payer

Table of Contents
Chapter 1: Manage Your Taxes
Chapter 2: Estimated Tax Payments
Chapter 3: Capital Gains Tax
Chapter 4: Tax Planning & Filing Your Taxes
Chapter 5: Lowering Your Tax Liability
Chapter 6: Tips for the First Time Tax Payer

Tax planning can be overwhelming for first time taxpayers, especially if they don’t have a tax planner or attorney. Here are a few tips to make your first tax filing easier and simpler.

  • Take time to go through your W-2 and 1040EZ forms and read each and every line, box and column. Increasing your knowledge will make the task less daunting.
  • Remember that tax planning is simply about paying the money you owe to the government. It’s just like paying any other bill. Work on it step by step and don’t let the details bog you down.
  • Use low-cost or free tax software and see if your tax calculations on paper match with your software results.
  • Go to a tax filing expert with your documents for reviewing your tax returns.
  • Ask questions in a tax forum on the internet, but carefully consider what advice to follow.

If you are still not very sure of doing it on your own the first time, get a tax attorney or a tax preparer to do the job for you. It is better to make that small expense than to file delayed returns or incorrect returns that attract penalties and interest.