Tax Processes For First-Time Employees

Filing taxes for the first time can be overwhelming for a young professional who just got hired. In fact, the whole process can baffle even the most experienced ones. But before getting intimidated by the forms and the rules, new payers should plan and prepare well for their first tax season.

Image source: Intuit.com

Before filing for taxes, an employee must have a copy of the W-2 form from their employers. The W-2 reflects their entire income along with federal and state income tax, Social Security, and Medicare deductions that can be considered as pre-tax deductions. On the other hand, independent contractors must file their 1099-MISC that shows their income without withheld taxes as they would need to file for self-employment tax.

Employees must have their tax folders with all these forms along with earning statements and additional income that can come in the form of interest, investment, and earnings. If the employees were hired straight out of college, it is best to reconcile taxes with their parents. Being a dependent of a taxpayer could qualify their parents to receive deductibles on their returns. Other deductibles to be considered are job search expenses, child and dependent care credit, and earned income tax credit.

To avoid being stunned by this important task, first-time employees must avoid procrastinating in order to accurately fill-up the form and avoid hassles during the actual submission.

Image source: Theselfemployed.com

With more than a decade in operation, Tax Tiger has been delivering effective, aggressive, and reasonable tax remedies through its team of tax specialists. Visit this website to get acquainted with its services.

The Importance of Filing Past Due Taxes

Back taxes are unpaid taxes in the year that they were due. It can be a serious issue for many taxpayers who have no means of paying them. The IRS has turned over the collection of back taxes to private collection agencies recently. This means that the government is serious about going after those who do not pay their taxes right and on time.

Image source: flickr.com
Image source: flickr.com

Having tax debt can be a source of stress for individuals, especially if they cannot afford to pay the tax they are due. Aside from the back tax, they are required to pay they are also charged with interest and penalties.

Those who are applying for loans are at a disadvantage if they have back tax. The approval of loans for higher education, mortgage, or business will be delayed because these taxpayers have to settle their taxes first. Social Security benefits can also be at risk if people do not pay their taxes right. Those who have back taxes may not get their disability or retirement benefits. Freelancers and self-employed individuals are more vulnerable to creating back tax liability because they usually self-account for all their gains and expenses.

Image source: financialtribune.com
Image source: financialtribune.com

IRS tax debt can be horrifying for many, but help is available. Choose Tax Tiger’s professional team for issues regarding back tax. Visit this Facebook page for more information.