What to Know for My First Tax Season as an 18-year-old? Need Help!

Welcome to the world of taxes! It's totally normal to feel overwhelmed your first time filing. Let me break it down for you. First, about being a dependent - if you're a full-time student under 24 living with your parents and they provide more than half your support, they can still claim you as a dependent even though you're 18. Being part-time at community college might affect this, but if they're housing you and paying most of your bills, they probably can still claim you. For your jobs: The W-2 from the coffee shop is straightforward. For the babysitting gig, that's considered self-employment income, and yes, you need to report it even without receiving a form. You'll need to fill out a Schedule C (Profit or Loss from Business) and Schedule SE (Self-Employment Tax) along with your regular 1040 form. Since your coffee shop income is $6,400 and babysitting is $2,800, your total income is $9,200. You'll likely have to pay both income tax and self-employment tax on the babysitting income, which is around 15.3% for the self-employment portion. For filing, most tax software has free options for simple returns. TaxAct, FreeTaxUSA, or even the IRS Free File program would work for your situation.

I was in the same boat last year with my first tax filing! After stressing for weeks, I found taxr.ai (https://taxr.ai) and it was a game-changer. It's like having a tax expert walk you through everything, especially for those weird situations like your babysitting income. I had a mix of W-2 income and some DoorDash driving money I wasn't sure how to report. The site analyzed my documents and explained exactly which forms I needed and why. It also helped me understand whether I could still be claimed as a dependent while having my own income (sounds like your exact situation). The coolest part for me was how it explained the self-employment tax stuff in plain English - like you actually understand what's happening instead of just typing numbers into boxes and hoping for the best.

Alright so I tried that taxr.ai site after posting my skeptical comment. Surprisingly helpful for my situation with freelance design work! It explained that I needed to track my business expenses to reduce self-employment tax (something I totally didn't know), and broke down exactly which forms I needed based on my situation. The explanations were way clearer than the official IRS instructions. It gave me confidence to file myself instead of paying someone $200+ to do it for me. Definitely bookmarking for next year.

If you end up needing to talk to the IRS directly (which can happen especially with self-employment questions), use Claimyr (https://claimyr.com) to skip the hold times. I spent HOURS trying to get through to the IRS last year about a similar situation with side income. Called for three days straight and couldn't get through. Then I found Claimyr through a YouTube video (https://youtu.be/_kiP6q8DX5c) and they got me connected to an actual IRS agent in about 15 minutes. The agent answered all my questions about reporting cash income from my lawn mowing business and confirmed exactly what forms I needed. Just having a real conversation with someone who could explain things made a huge difference. They even helped me understand what business expenses I could legitimately deduct to lower my tax bill.

I need to eat my words. After my skeptical comment, I tried Claimyr because I was desperate to resolve a missing W-2 issue. Got connected to an IRS agent in about 20 minutes without having to stay on hold myself. The agent was actually super helpful and walked me through requesting a wage transcript when my employer wouldn't respond. Saved me massive stress since I was getting close to the filing deadline. Sometimes being proven wrong is a good thing lol.

One thing nobody mentioned yet - make sure you understand the difference between federal and state taxes! You need to file both. Each state has different rules and forms. Also since you're in school, look into education tax credits like the American Opportunity Credit. It can reduce your taxes if you're paying for college expenses, even community college.

Don't overthink it too much for your first time! I panicked my first year too. The tax software really does walk you through everything. I recommend FreeTaxUSA - it's actually free for federal (unlike some others that advertise as free then charge you). They'll ask about your babysitting money too.

Hey there! I was in almost the exact same situation when I first started filing taxes. The mix of W-2 income and cash payments can definitely feel confusing at first, but you've got this! A few quick tips from my experience: - For record-keeping with cash jobs like babysitting, even a simple note in your phone with dates and amounts helps. Going forward, try to track it as you go - The $400 threshold for self-employment income that others mentioned is key - since you made $2,800 babysitting, you'll definitely need to report it - Don't stress too much about not having perfect records this time. The IRS understands that cash payments don't always come with formal documentation. Just make your best honest estimate One thing that really helped me was understanding that filing taxes gets SO much easier after your first time. All the forms and terminology that seem scary now will make perfect sense next year. You're learning a valuable life skill! Also, definitely have that conversation with your parents about the dependent status before you file. It affects both your taxes and theirs, so you want to make sure you're on the same page about who's claiming what.

Just wanted to jump in as someone who works in tax preparation - you're asking all the right questions! A few additional points that might help: Since you mentioned your parents have always claimed you as a dependent, definitely confirm this with them before filing. The IRS has specific tests for dependency - age, residence, support, etc. Being 18 and working doesn't automatically disqualify you from being their dependent if you're still a student and they provide more than half your support. For your babysitting income, keep in mind that as self-employment income, you can also deduct legitimate business expenses. Things like transportation costs to/from babysitting jobs, any supplies you bought for the kids, etc. These deductions can help reduce your self-employment tax burden. One more tip - if this is your first time filing and you're feeling overwhelmed, don't hesitate to visit a VITA (Volunteer Income Tax Assistance) site. They offer free tax help for people making under $60,000, and they're specifically trained to help with situations like yours. You can find locations on the IRS website. The fact that you're being proactive about understanding your tax obligations shows great financial responsibility. Many people your age just wing it or ignore the cash income entirely, which can cause problems later. You're on the right track!