{"id":6891,"date":"2024-10-29T09:55:32","date_gmt":"2024-10-29T09:55:32","guid":{"rendered":"https:\/\/finderica.com\/our-complete-guide-to-how-to-files-taxes-in-2024\/"},"modified":"2024-10-29T09:55:32","modified_gmt":"2024-10-29T09:55:32","slug":"our-complete-guide-to-how-to-files-taxes-in-2024","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=6891","title":{"rendered":"Our Complete Guide to How to Files Taxes in 2024"},"content":{"rendered":"\n<div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"lazyload clicker_number\" style=\"position: absolute; height: 1px; width: 100%\" alt=\"ScoreCard Research\" data-count=\"216.98.0.236,216.98.0.236, 172.68.174.164\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\"><\/p>\n<p>There is a lot to know when it comes to filing taxes. Our complete guide for the 2023 tax year (filing in 2024) should help. Ibuprofen sold separately.<\/p>\n<div class=\"adBorder\" id=\"thepe-52255105\">\n<h3>Is Your Paycheck Not Going As Far As It Used To?<\/h3>\n<p>We get it. <em>Everything<\/em> is more expensive than it used to be, but your paycheck hasn\u2019t kept up.<\/p>\n<p>When money is tight, <a href=\"https:\/\/partners.thepennyhoarder.com\/when-money-is-tight-sdyn-prt\/?aff_id=384&amp;aff_sub3=when-money-is-tight-sdyn-prt\/&amp;aff_sub4=191766\" rel=\"false noopener\" target=\"_blank\">these resources<\/a> will help nearly everyone.<\/p>\n<\/div>\n<h2><span class=\"tph-toc-anchored-text\" id=\"how-much-do-you-have-to-make-to-file-taxes\"><\/span><b>How Much Do You Have to Make to File Taxes?<\/b><\/h2>\n<p>Making more money is, in almost every way, a good thing. But it\u2019s also true that the more money you make, the more taxes you\u2019re required to pay \u2014 at least up to a point.<\/p>\n<p>On the opposite end of the spectrum, you may be exempt from filing a federal income tax return if you don\u2019t meet the IRS income threshold, which can change.<\/p>\n<h3><span class=\"tph-toc-anchored-text\" id=\"2023-tax-year\"><\/span><b>2023 Tax Year<\/b><\/h3>\n<p>You need to file a 2023 federal tax return by April 15, 2024, if your income exceeded the amounts listed below. In recent years, filers have had a few extra days because Tax Day (April 15) has fallen on a weekend. Make sure you note on your calendars that this year, the normal tax deadline has returned.<\/p>\n<p>The extension deadline is Oct. 15.<\/p>\n<p><b>Single tax filers or married filing separate tax returns<\/b><\/p>\n<ul>\n<li aria-level=\"1\">$13,850 if you\u2019re under 65.<\/li>\n<li aria-level=\"1\">$15,700 if you\u2019re 65 or older<\/li>\n<\/ul>\n<p><b>Married filing jointly<\/b><\/p>\n<ul>\n<li aria-level=\"1\">$27,700 if both spouses are younger than 65.<\/li>\n<li aria-level=\"1\">$29,200 if one spouse is younger than 65 and the other spouse is 65 or older.<\/li>\n<li aria-level=\"1\">$30,700 if both spouses are 65 or older.<\/li>\n<\/ul>\n<p><b>Head of household<\/b><\/p>\n<ul>\n<li aria-level=\"1\">$20,800 if you\u2019re under 65.<\/li>\n<li aria-level=\"1\">$22,650 if you\u2019re 65 or older.<\/li>\n<\/ul>\n<p><b>Qualifying widow or widower with a dependent child:<\/b><\/p>\n<ul>\n<li aria-level=\"1\">$27,700 if you\u2019re under 65.<\/li>\n<li aria-level=\"1\">$29,200 if you\u2019re 65 or older.<\/li>\n<\/ul>\n<p>The best way to determine whether or not you need to file a tax return is to use the <a href=\"https:\/\/www.irs.gov\/help\/ita\/do-i-need-to-file-a-tax-return\" target=\"_blank\" rel=\"noopener\">IRS\u2019s free online tool<\/a>, which takes about 12 minutes to get a definitive answer.<\/p>\n<h2><span class=\"tph-toc-anchored-text\" id=\"how-are-your-taxes-calculated\"><\/span><b>How Are Your Taxes Calculated?<\/b><\/h2>\n<p>All right, so you\u2019ve successfully determined whether you\u2019re required to file a federal tax return.<\/p>\n<p>Now for the real fun: figuring out exactly how much you owe \u2014 or are owed.<\/p>\n<p>Your taxes are calculated based on a range of personal details, like how much money you made in a given tax year, how much you\u2019ve already paid in taxes, your marital status and how many dependents you have.<\/p>\n<p>Your federal income tax is determined according to income brackets, which scale up in percentage as your overall income increases. For 2023 (filing in 2024), there are seven federal income tax brackets, ranging from 10% to 37% of your income. Unmarried and married individuals (and heads of household) have different levels of taxable income that determine their tax brackets.<\/p>\n<p>Along with federal income taxes and your contributions to Social Security and Medicare, you\u2019ll also be responsible for state and local taxes. Each year, you must file a state tax return, unless you live in one of the nine states that don\u2019t levy them. Those states are:<\/p>\n<ul>\n<li aria-level=\"1\">Alaska<\/li>\n<li aria-level=\"1\">Florida<\/li>\n<li aria-level=\"1\">Nevada<\/li>\n<li aria-level=\"1\">New Hampshire*<\/li>\n<li aria-level=\"1\">South Dakota<\/li>\n<li aria-level=\"1\">Tennessee<\/li>\n<li aria-level=\"1\">Texas<\/li>\n<li aria-level=\"1\">Washington<\/li>\n<li aria-level=\"1\">Wyoming<\/li>\n<\/ul>\n<p>*New Hampshire does not have traditional income taxes on W-2 wages, but the state does assess a small tax on dividends and interest, though this is set to phase out after tax year 2024 (filed in 2025).<\/p>\n<p>The other states\u2019 rates run from as much as 13.3% (California) to as little as 3.07% (Pennsylvania)  and may vary by income or be assessed at a flat rate.<\/p>\n<p>Note: States without income tax typically make up for it in higher sales tax rates, especially for items like tobacco and alcohol. Tennessee charges the most with a statewide 7% sales tax. Louisiana has a 4.45% sales tax, but individual localities can tack on as much as 7% more for a total of 11.45%.<\/p>\n<p>Depending on where you live, you might also have to contend with local taxes and even school district taxes. Some cities only have one, but some homeowners might find they are double-taxed: once by their town and once by their school district, even if they don\u2019t have kids attending.<\/p>\n<div class=\"adBorder\" id=\"thepe-1922527962\">\n<h3>Swipe Like a Millionaire\u00a0\u2014 No Gold Card Required<\/h3>\n<p>Ever wondered how millionaires get to be\u2026 millionaires? Us, too. So we looked into it.<\/p>\n<p>What we found are\u00a0<a href=\"https:\/\/partners.thepennyhoarder.com\/millionaires-sdyn-prt\/?aff_id=384&amp;aff_sub3=millionaires-sdyn-prt\/&amp;aff_sub4=191914\" rel=\"false noopener\" target=\"_blank\">simple, millionaire-approved tips<\/a>\u00a0that anyone can use to manage their money.<\/p>\n<\/div>\n<h3><span class=\"tph-toc-anchored-text\" id=\"deductions-and-credits\"><\/span>Deductions and Credits<\/h3>\n<p>You may be eligible for certain tax deductions, such as student loan interest payments. Tax deductions can add up and cut a nice chunk off of what you\u2019d otherwise owe to the IRS, sometimes substantially increasing your refund by reducing your total taxable income.<\/p>\n<p>This is especially true if you\u2019re a freelancer, in which case you may be able to take a home office deduction.<\/p>\n<p><b>Note:<\/b> With more people working at home since the pandemic, there may be heightened interest in this. Check with a tax advisor but know that if you are employed and received a W-2 but are working from home, you probably can\u2019t claim a deduction. The home office deduction is generally reserved for self-employed or gig workers. Learn more in our complete guide to independent contractor taxes.<\/p>\n<p>You could also deduct the interest paid on your mortgage, charitable donations and more. Or, it may be in your best interest to take the standard deduction, which, for 2023, is a pretty generous $13,850 for single filers ($19,400 for heads of household or $27,700 for those married and filing jointly).<\/p>\n<p>There are also certain tax credits you may be eligible for, such as the American Opportunity Credit, which offers eligible students up to $2,500 per year to offset college expenses, or the Child Care Credit, which offers eligible guardians up to $2,000 apiece to offset the expense of supporting a dependent.<\/p>\n<p>Tax credits differ from deductions: While a tax deduction reduces your income subject to taxes, a tax credit reduces what you owe the government, dollar for dollar.<\/p>\n<h3><span class=\"tph-toc-anchored-text\" id=\"doing-the-math\"><\/span>Doing the Math<\/h3>\n<p>If you\u2019re a first-time tax filer, chances are your situation won\u2019t be too complex. You\u2019ll likely be able to get away with the simplest version of IRS Form 1040.<\/p>\n<p>This document uses information about your income, withheld taxes, marital status and dependents to determine whether you\u2019ll be writing or receiving a check.<\/p>\n<p>Most people will fill this out using their W-2 as a guideline, which is a document issued by your employer.<\/p>\n<p>Your W-2 lists your total earned wages and withholdings, including federal income tax, Medicare and Social Security. It should\u2019ve been distributed by employers no later than Jan. 31, and these days, the documents are often sent digitally.<\/p>\n<p>The self-employed person\u2019s equivalent of a W-2 is a 1099, although these documents don\u2019t include information on tax withholding \u2014 because independent contractors are responsible for doing that themselves. Contractors should be paying quarterly estimated taxes to Uncle Sam to avoid any fines come tax season. More on this below.<\/p>\n<p>The more complicated your financial landscape is, the more complicated your filing will be, and the more forms you\u2019ll need to add to your pile.<\/p>\n<p>For example, if you have additional sources of income through capital gains, unemployment compensation, gambling or prizes, you\u2019ll need to file a Schedule 1 along with your 1040.<\/p>\n<p>There are also additional forms for those who owe self-employment tax or can claim a refundable credit. (The IRS helpfully lists some of the most common additional filing scenarios, and the necessary documents, on its \u201cAbout Form 1040\u201d page.)<\/p>\n<p>Of course, dragging out your calculator and working out your tax burden longhand is only simple in theory, even under the most straightforward circumstances \u2014 which is why many people turn to tax filing software or professional services to help make taxes less of a chore. These costs range from a few bucks on a digital filing upgrade to putting an accountant on retainer.<\/p>\n<p>If you are worried about making mistakes while filing or if your tax situation is any more complicated than a basic W-2, we highly recommend using tax software like <a href=\"https:\/\/t.thepennyhoarder.com\/aff_c?offer_id=3267&amp;aff_id=2\" rel=\"nofollow noopener\" target=\"_blank\">TurboTax<\/a>. And if your scenario is exceedingly complex for even tax preparation software, consider an actual accountant, who can help not just with your federal tax return but also your state and local tax returns.<\/p>\n<figure id=\"attachment_173770\" style=\"width: 1024px\" class=\"wp-caption alignright\"><img loading=\"lazy\" fetchpriority=\"high\" loading=\"lazy\" fetchpriority=\"high\" decoding=\"async\" class=\"lazyload size-large wp-image-173770\" src=\"https:\/\/www.thepennyhoarder.com\/wp-content\/uploads\/2022\/02\/file-taxes-final-1024x683.jpg\" alt=\"An elderly woman gets help with filing her taxes. \" width=\"1024\" height=\"683\" srcset=\"https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2022\/02\/13140555\/file-taxes-final-1024x683.jpg 1024w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2022\/02\/13140555\/file-taxes-final-360x240.jpg 360w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2022\/02\/13140555\/file-taxes-final-768x512.jpg 768w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2022\/02\/13140555\/file-taxes-final-100x67.jpg 100w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2022\/02\/13140555\/file-taxes-final-222x148.jpg 222w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2022\/02\/13140555\/file-taxes-final-314x209.jpg 314w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2022\/02\/13140555\/file-taxes-final-363x242.jpg 363w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2022\/02\/13140555\/file-taxes-final-467x311.jpg 467w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2022\/02\/13140555\/file-taxes-final-649x433.jpg 649w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2022\/02\/13140555\/file-taxes-final-750x500.jpg 750w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2022\/02\/13140555\/file-taxes-final-793x529.jpg 793w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2022\/02\/13140555\/file-taxes-final-300x200.jpg 300w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2022\/02\/13140555\/file-taxes-final.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"><figcaption class=\"wp-caption-text\"> Getty Images<\/figcaption><\/figure>\n<h2><span class=\"tph-toc-anchored-text\" id=\"how-to-file-your-taxes\"><\/span><b>How to File Your Taxes<\/b><\/h2>\n<p>Now that you\u2019ve got the hard part out of the way, it\u2019s time to put away the calculator and actually file your income tax return. You\u2019ve got a number of options, some of which are more convenient (and costly) than others.<\/p>\n<p>You may:<\/p>\n<h3><span class=\"tph-toc-anchored-text\" id=\"e-file-using-the-irs-free-file-tool\"><\/span>E-File Using the IRS Free File Tool<\/h3>\n<p>The Free File tool is a good option for those with relatively straightforward taxes, especially if your adjusted gross income (AGI) is less than $79,000. You receive guided tax preparation and free federal filing \u2014 and sometimes state, depending on where you live. (Those with an adjusted gross income of more than $79,000 can still use the Free File tool, but you won\u2019t receive any guidance, and state tax prep is not available.) If your adjusted gross income is higher than the cut off, we recommend foregoing Free File and instead opting for tax software like TurboTax or an actual accountant.<\/p>\n<p>You can use the IRS Free File option online with guided tax preparation, or you can use Free File at an IRS partner site (TurboTax and H&amp;R Block famously dropped out of the program in 2020). Note that you cannot begin the Free File process on an IRS partner site; begin the process at IRS.gov to qualify. You can also try Free File at home, with pen and paper, using the Free File Fillable Forms (say that five times fast).<\/p>\n<p>You cannot use Free File to complete a prior year tax return.<\/p>\n<h3><span class=\"tph-toc-anchored-text\" id=\"e-file-using-a-private-tax-preparation-software\"><\/span>E-File Using a Private Tax Preparation Software<\/h3>\n<p>Some of the most common tax filing software options include <a href=\"https:\/\/t.thepennyhoarder.com\/aff_c?offer_id=3267&amp;aff_id=2\" rel=\"nofollow noopener\" target=\"_blank\">TurboTax<\/a>, <a href=\"https:\/\/t.thepennyhoarder.com\/aff_c?offer_id=7096&amp;aff_id=2\" rel=\"nofollow noopener\" target=\"_blank\">TaxAct<\/a> and <a href=\"https:\/\/t.thepennyhoarder.com\/aff_c?offer_id=4878&amp;aff_id=2\" rel=\"nofollow noopener\" target=\"_blank\">H&amp;R Block<\/a>. Most of these tax preparation services offer a free file option (though TurboTax and H&amp;R Block no longer participate in the IRS Free File program), and they make the process super simple: Just fill out some forms, click some buttons, and your tax is sent.<\/p>\n<p>The free file service goes for basic federal <i>and<\/i> state taxes. This makes it more comprehensive than the IRS tool, but if you have to file a local tax return, you\u2019re still on your own for that. And if your financial situation is more complex \u2014 for example, income including mortgage interest or rental property profit \u2014 you may have to move into a paid tier. Be prepared to pay extra as well if you\u2019d like tax advice from an actual professional.<\/p>\n<p><b>A caveat:<\/b> Most customers begin using a service like TurboTax after hearing it\u2019s free, but TurboTax and similar tax software are only truly free for a handful of customers with very basic tax returns. The moment you introduce some complexity into your federal tax return, these tax preparation services will start adding dollar signs to your total.<\/p>\n<h3><span class=\"tph-toc-anchored-text\" id=\"old-school-using-paper-tax-filing\"><\/span>Old-School Using Paper Tax Filing<\/h3>\n<p>That\u2019s right: You can still send actual, hand-filled-out paper forms to the IRS in the mail. Paper tax filing is pretty cheap, of course, but it\u2019s also an easy way to make errors on your return if you\u2019re not a tax wizard. But if you\u2019re confident in your calculator-fu, here\u2019s the full list of <a href=\"https:\/\/www.irs.gov\/filing\/where-to-file-paper-tax-returns-with-or-without-a-payment\" target=\"_blank\" rel=\"noopener\">IRS mailing addresses by state<\/a>.<\/p>\n<p>Keep in mind that the IRS has had a huge backlog of paper returns ever since COVID-19 and openly discourages paper filing on its website. Many people waited months to get their tax refund in recent years, whereas over 90% of returns filed online are processed within 21 days.<\/p>\n<h3><span class=\"tph-toc-anchored-text\" id=\"hire-a-professional-tax-preparer\"><\/span>Hire a Professional Tax Preparer<\/h3>\n<p>Although it\u2019s easily the most expensive move on this list, using a tax preparer is also the least stressful \u2014 and if you make enough to cover it without too much budgetary shuffling, it might just be worthwhile. A certified accountant or tax preparer can ensure you get the most generous refund possible (they\u2019ll chase down every tax credit and tax deduction possible) and can offer tax advice along every step of the journey. Should you get audited for a year that you sought professional help, that firm can step in and assist. And best of all, your calculator can stay firmly ensconced in its layer of dust.<\/p>\n<p>Tax preparation fees can vary based on the complexity of your situation (and number and types of forms involved) and on your location; in general, tax preparation fees for basic filing average a little over $200.<\/p>\n<h3><span class=\"tph-toc-anchored-text\" id=\"if-you-owe-money\"><\/span>If You Owe Money<\/h3>\n<p>If you owe taxes, you can pay through the digital system via direct transfer from your bank account or by credit card. You can also mail off a paper check to the correct address for your state.<\/p>\n<p>But let\u2019s keep the glass half full and assume the government owes <i>you <\/i>money. You can set up direct deposit to your bank account for the fastest refund, but you can also request a paper check in the mail. In recent years, refunds from federal tax returns have been delayed when paid via mail; if at all possible, opt for direct deposit.<\/p>\n<figure id=\"attachment_173772\" style=\"width: 1024px\" class=\"wp-caption alignright\"><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"lazyload size-large wp-image-173772\" src=\"https:\/\/www.thepennyhoarder.com\/wp-content\/uploads\/2022\/02\/file-taxes2-final-1024x683.jpg\" alt=\"A man does paperwork in his home office. \" width=\"1024\" height=\"683\" srcset=\"https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2022\/02\/13140915\/file-taxes2-final-1024x683.jpg 1024w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2022\/02\/13140915\/file-taxes2-final-360x240.jpg 360w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2022\/02\/13140915\/file-taxes2-final-768x512.jpg 768w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2022\/02\/13140915\/file-taxes2-final-100x67.jpg 100w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2022\/02\/13140915\/file-taxes2-final-222x148.jpg 222w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2022\/02\/13140915\/file-taxes2-final-314x209.jpg 314w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2022\/02\/13140915\/file-taxes2-final-363x242.jpg 363w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2022\/02\/13140915\/file-taxes2-final-467x311.jpg 467w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2022\/02\/13140915\/file-taxes2-final-649x433.jpg 649w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2022\/02\/13140915\/file-taxes2-final-750x500.jpg 750w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2022\/02\/13140915\/file-taxes2-final-793x529.jpg 793w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2022\/02\/13140915\/file-taxes2-final-300x200.jpg 300w, https:\/\/cdn.thepennyhoarder.com\/wp-content\/uploads\/2022\/02\/13140915\/file-taxes2-final.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"><figcaption class=\"wp-caption-text\"> Getty Images<\/figcaption><\/figure>\n<h2><span class=\"tph-toc-anchored-text\" id=\"common-tax-mistakes--and-how-to-avoid-them\"><\/span><b>Common Tax Mistakes \u2014 And How to Avoid Them<\/b><\/h2>\n<p>It\u2019s important that you file your income taxes correctly and on time or else risk penalties. If you think you\u2019re going to be late, you can file for an extension \u2014 but never count on it being granted.<\/p>\n<p>Here are some of most common mistakes people make when filing income taxes and our advice for avoiding them:<\/p>\n<h3><span class=\"tph-toc-anchored-text\" id=\"mistakes-when-calculating\"><\/span>Mistakes When Calculating<\/h3>\n<p>Hey, you\u2019re not a robot. You might know your multiplication tables as well as the next guy, but we\u2019re all human and make mistakes. And you know who doesn\u2019t like mistakes? The IRS.<\/p>\n<p><b>How to avoid this: <\/b>Use a calculator when filing your taxes by hand. Better yet, use the IRS Free File option, let a tax preparation service like TurboTax do the calculations for you, or leave it to a tax professional with an even more sophisticated bit of software at their disposal.<\/p>\n<h3><span class=\"tph-toc-anchored-text\" id=\"mistakes-when-filing\"><\/span>Mistakes When Filing<\/h3>\n<p>When you file your federal income taxes, you\u2019ll have a couple of key choices to make: 1) standard or itemized deduction and 2) filing status. Married couples in particular need to weigh the pros and cons of filing jointly or separately.<\/p>\n<p>Because there can be major implications (like how and if you can contribute to tax-advantaged retirement accounts or how student loan companies with income-based payment plans will view your income), you need to really think through your filing status.<\/p>\n<p><b>How to avoid this: <\/b>A financial advisor or professional tax preparer is your best bet when making these more challenging decisions. Their software should also be able to help you see how much you\u2019ll save with an itemized vs. standard deduction.<\/p>\n<div class=\"adBorder\" id=\"thepe-224304372\">\n<h3>Need Some Quick Cash?<\/h3>\n<p>If you\u2019re looking to boost your income this month, we\u2019ve got just the thing for you.<\/p>\n<p>From quick gigs to smart side hustles, check out <a href=\"https:\/\/partners.thepennyhoarder.com\/50-ways-sdyn-prt\/?aff_id=384&amp;aff_sub3=50-ways-sdyn-prt\/&amp;aff_sub4=191813\" target=\"_blank\" rel=\"noopener\">these 50 easy ways to make a quick buck<\/a> \u2014 there\u2019s something for everyone.<\/p>\n<\/div>\n<h3><span class=\"tph-toc-anchored-text\" id=\"personal-finance-mistakes\"><\/span>Personal Finance Mistakes<\/h3>\n<p>Don\u2019t get too scared when you read this, but the decisions you\u2019re making all year long can have major tax implications. Write a check to the Humane Society but forget to get a receipt? Start a new job but choose the wrong withholding status when filling out paperwork? Driving your car for a freelance gig but not correctly capturing the mileage? These are all things that could come back to bite you when you go to file your taxes.<\/p>\n<p><b>How to avoid this: <\/b>Be proactive when it comes to personal finance. Remember to keep records of all charitable giving, be aware of your proper withholding status whenever your paycheck changes (due to a new job or a raise) and be diligent about logging expenses if you run your own side gig.<\/p>\n<h3><span class=\"tph-toc-anchored-text\" id=\"self-employment-mistakes\"><\/span>Self-Employment Mistakes<\/h3>\n<p>If you juggle a side hustle, have a growing base of freelance clients or run your own business, you have special tax needs that, in most cases, require help from a tax professional. Mistakes for the self-employed can run the gamut, from not paying enough in estimated taxes (or not paying them at all) to not setting aside enough funds to cover what they end up owing \u2014 because of the dreaded self-employment tax.<\/p>\n<p><b>How to avoid this: <\/b>Find an accountant and ask them to help you calculate your quarterly tax payments. Most tax preparers will print vouchers for your quarterly payments with instructions on how and when to pay them. Make sure you always set aside roughly a third of any freelance income for taxes because, on top of your regular income tax burden as an employee, you\u2019ll also have to cover the employer burden.<\/p>\n<p>For many filers, all this paperwork does have a silver lining: a tax refund check, just in time for summer.<\/p>\n<p><i>Timothy Moore covers banks, taxes and insurance for The SS. 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