Adult life on one's own comes with a massive amount of
responsibilities, and those in their 20s and early 30s in particular may not be
as prepared as they might think to tackle the coming tax filing season in a
manner that is responsible and going to ensure that they're in the best
possible position to avoid a massive bill.
There are a number of credits for which millennials in
particular may find themselves eligible, and knowing about them can be wise for
anyone planning to save some money by doing taxes on their own before taking
them to a professional, according to a report from Scripps Digital. Perhaps
chief among them is the earned income credit, which is available to single
people with no children. Further, they might also be able to write off some of
the costs of their ongoing higher education through the American
opportunity tax break, as long as they have an income of less than $80,000, or
$160,000 in the case of married couples filing jointly. However, this is only
available to those in the first four years of their college careers who are at
least half-time students.
Another tax break, which often goes unused by people of all
ages, is referred to as the saver's credit, the report said. Young people with
incomes of $29,500 for singles, $44,250 for heads of household, or $59,000 for
those married filing jointly may be able to write off some of their
contributions to 401(k) accounts.
is half the battle
Of course, not all young people are eligible for every tax credit they think
might or should be available to them, obviously, and thus they need to do more
to make sure they know exactly where they stand, the report said. They can do
so either using the IRS website themselves, or with the help of a tax
professional who is likely to be extremely well-versed in the kinds of
deductions just about anyone can claim. They should also make sure they know
exactly what documents they will need to file everything properly.
Young people should also keep in mind that the recent
government shutdown has pushed back the start of filing season to the end of
January, but that they should still try to prepare as early as possible.
For a more in-depth look at Liberty Tax Service, visit the Give Me Liberty! Magazine. Follow Liberty Tax on Facebook and
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