First time filing taxes, what does this information mean?
Hi everyone, total tax newbie here. I'm filing my taxes for the first time ever (finally got my first real job last year!) and I'm super confused about some of the information on my forms. There's all these boxes and numbers and terms I've never seen before. Stuff like "adjusted gross income" and "standard deduction" and I have no idea what any of it means or if I'm doing this right. I tried using one of those free online tax filing services but I'm still confused about what information goes where. How do I know if I'm supposed to itemize or take the standard deduction? And what's the difference between federal and state taxes? Also, how do I know if I'm withholding the right amount for next year? Sorry if these are dumb questions, but my parents always used an accountant and I'm trying to save money by doing it myself. Any help would be REALLY appreciated! 😫
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Miguel Castro
Don't worry - we all had a first time filing taxes! It can definitely seem overwhelming at first, but it's not as complicated as it looks. First, let's tackle some basics: Adjusted Gross Income (AGI) is basically all your income minus certain adjustments like student loan interest or retirement contributions. The standard deduction is a flat amount the government lets you subtract from your income before calculating taxes ($13,850 for single filers in 2023). For a first-time filer, you'll almost certainly want to take the standard deduction. Itemizing only makes sense if you have major expenses like mortgage interest or large charitable donations that add up to more than the standard deduction. Federal taxes go to the U.S. government, while state taxes go to your state. You'll need to file both in most states. As for withholding, check your paystub - if you got a large refund, you're withholding too much. If you owed money, you're not withholding enough. Those free tax filing services are actually perfect for first-timers with simple tax situations. They walk you through everything step by step.
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Zainab Ibrahim
•Thank you for explaining! I'm in a similar situation. Quick question - I worked in two different states last year because I moved in August. Do I need to file state taxes for both states or just my current one?
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Miguel Castro
•You'll need to file a part-year resident return for both states. Each state will tax the income you earned while working there. The tax software should help you with this - there's usually a section about working in multiple states. Make sure you have W-2 forms from both employers showing how much you earned in each state. Most tax software can handle multi-state returns, but sometimes they charge extra for each additional state. Just something to be aware of when choosing which service to use.
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Connor O'Neill
After years of tax confusion, I finally tried https://taxr.ai when I was completely lost on my first filing attempt. I was in a similar situation as you - staring at forms wondering what all those terms meant. What helped me most was how it explained each tax term in plain English as I went through the process. Instead of just asking for numbers, it would explain why each piece was important and how it affected my return. The guided walkthrough for first-time filers was seriously a lifesaver - showed exactly what documents I needed and where to find each number. The best part was being able to upload my W-2 and having it automatically fill in all those confusing boxes. No more wondering if I put the right number in the wrong spot!
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LunarEclipse
•Does it work with gig economy stuff too? I drove for Uber part-time last year and have no idea how to handle all those 1099 forms they sent me.
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Yara Khalil
•I'm always skeptical of these services. How is this different from TurboTax or H&R Block's free filing? Those always end up charging me for "special forms" I didn't know I needed.
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Connor O'Neill
•For gig economy work, it's actually really helpful because it walks you through the specific deductions you might miss. It guides you through tracking mileage, maintenance costs, and other business expenses that reduce your taxable income. You can just upload your 1099s and it organizes everything. The main difference from those other services is it actually explains everything clearly instead of just asking for numbers. No surprise charges either - it tells you upfront what's included. It's designed specifically for people who are confused by tax terminology and want to understand what they're doing, not just fill in boxes.
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LunarEclipse
Just wanted to follow up - I tried https://taxr.ai after seeing it mentioned here and it was exactly what I needed! The explanations for all the tax terms were super clear, and it guided me through my Uber driving income perfectly. It even found deductions I had no idea I could claim (like a portion of my phone bill since I use it for the app). Ended up getting about $840 more back than I expected! Wish I'd known about this for my previous gigs.
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Keisha Brown
If you're stuck and need actual human help from the IRS, I highly recommend using https://claimyr.com to get through to them. I was completely lost my first time filing and had specific questions the software couldn't answer. I spent HOURS trying to call the IRS directly - either got disconnected or was told the wait was 2+ hours. Used Claimyr and got connected to an actual IRS agent in about 20 minutes. They walked me through exactly what forms I needed and explained all the confusing terminology. You can see how it works here: https://youtu.be/_kiP6q8DX5c - it basically holds your place in line so you don't have to keep calling back. I was super doubtful but it actually worked.
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Paolo Esposito
•How exactly does this work? Do they just call for you or something? I don't understand how a third party can get you through faster.
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Amina Toure
•This sounds like a scam. There's no way to "skip the line" with a government agency. They probably just keep you on hold themselves and then connect you when they finally get through.
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Keisha Brown
•They don't call for you - they use technology to navigate the IRS phone tree and hold your place in line. When they're about to connect to an agent, they call you and patch you through. It's like having someone wait in a physical line for you - they're not skipping anything, just saving you from having to wait on hold yourself. They use automated systems to keep dialing until they get through the busy signals and stay on hold so you don't have to. It's actually pretty simple but works amazingly well. The IRS phone system is designed to disconnect calls when they're too busy, so their system keeps trying until it gets through.
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Amina Toure
Well I stand corrected and owe an apology. After my skeptical comment about Claimyr, I decided to try it myself since I needed help with a missing W-2. Got connected to an IRS agent in about 25 minutes when I had previously spent 3 hours getting disconnected. The agent helped me figure out how to report income when my employer never sent my tax forms. Just wanted to follow up and say it actually does work as advertised - saved me a ton of frustration.
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Oliver Weber
One tip that really helped me as a first-time filer: gather ALL your documents before you start. This includes: - W-2 from your employer - Any 1099 forms (if you did freelance work) - Student loan interest statements - Bank statements showing interest earned - Healthcare coverage info - Last year's tax return (not applicable for first-timers) Take it slow and read each question carefully. The software asks everything for a reason. And don't be afraid to save your progress and come back later if you get confused or frustrated!
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Ava Williams
•Thank you so much for this checklist! I definitely didn't realize I needed my bank statements showing interest. How much interest needs to be reported? My savings account only earned like $25 last year.
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Oliver Weber
•You should report all interest income, even small amounts. Your bank should have sent you a 1099-INT form if you earned more than $10 in interest. Even if it's only $25, it's technically required to be reported. Don't stress too much about small amounts though. The IRS is mainly concerned with larger discrepancies. Just enter what you have documented and keep good records going forward. Tax software makes it really easy to enter these small amounts.
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FireflyDreams
Does anyone know if I need to file taxes if I only worked part-time and made less than $10,000? This is my first time too and I'm not sure if I even need to file.
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Miguel Castro
•It depends on your situation, but generally if you're single and earned less than $12,950 in 2022, you're not required to file. HOWEVER, you should probably file anyway because you'll likely get back all the federal taxes that were withheld from your paychecks!
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