Things to know when filing your US federal tax return in the hope of getting a refund, or at least owing less.
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You can probably do it yourself, if you want to; it's not usually hard if you use a program. It will probably be free if you are a typical redditor, but maybe not if you have a lot of complexity. http://ift.tt/2jFwjU8
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If you don't want to do it yourself because it's too complicated, do yourself a favor and talk to a real accountant. H&R Block doesn't count.
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Make sure you have all your forms before you start. You may not have received everything yet, including investment 1099s or health care forms, or a W2 from that job early last year that had to be forwarded to your new address. Filing an amended return because you forgot something is an inconvenience to be avoided if possible.
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If you find yourself owing money, that doesn't mean you did anything wrong. It probably just means you got more during during the year. If you would rather get money next year instead of this year, you can update your W4 to have more money withheld.
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If you worked two or more jobs, you probably are getting a smaller refund than you expected, or even owe money. This is because of how withholding works. The liability from both jobs together is more than either job thinks you will owe by itself. Otherwise, see point 4 just above.
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There are rules for who can be claimed as a dependent, either qualifying child, or qualifying relative. These are based on relationship, age, and amount of support provided / the supposed dependent's income. These are unrelated to FAFSA status. Read about them here: http://ift.tt/1m9UVgZ
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Filing jointly is usually a win for married couples. Sometimes it isn't, especially if you have income-based repayment of student loans. Try calculating it both ways and see what you get. If you find yourselves owing money filing jointly, see if you both filed W4s saying "married"; that usually results in underwitholding. Fix your W4s with the IRS withholding calculator, or with single rates.
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At this point, you can't change your tax liability very much. There are a few ways some people can save money if they qualify for traditional IRA deductions or HSA contributions for last year, but you have to meet various eligibility tests and limits.
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Most redditors will use the standard deduction, unless they have lots (>$6300/12,600) of itemized deductions like state income taxes, mortgage interest and property taxes. So if you can't itemize, you can't claim small deductions for that laptop you bought for work, or the cost of tax prep software.
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Unless you are in one of the seven states without such things, don't forget to do state income taxes. Usually these follow federal tax policy to some extent, but each state has its own unique quirks. If you have to file multiple state returns, you have our sympathy.
More information about these and many many tax questions can be found online as well, including the very helpful web site from our friends at irs.gov.
Submitted February 08, 2017 at 08:40AM by yes_its_him http://ift.tt/2k2HutV
