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What should first-time filers know before filing taxes?
First-time filers should familiarize themselves with the tax filing process, including understanding their dependency status and gathering all necessary documents. It's crucial to know the deadlines and the potential penalties for late filing. Consulting with a tax professional can also provide valuable insights.
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What documents are necessary for filing taxes?
Essential documents for filing taxes include W-2 forms from employers, 1099 forms for any freelance work, and records of any other income. Additionally, filers should have documentation for deductions, such as student loan interest statements and receipts for deductible expenses.
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How can first-time filers handle financial difficulties during tax season?
For those facing financial difficulties, the IRS offers hardship programs that allow eligible taxpayers to temporarily pause collection activities. It's important to communicate with the IRS and explore options like payment plans or filing for an extension, although this does not extend the payment deadline.
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Can first-time filers file for an extension?
Yes, first-time filers can file for an extension until October 15. However, it's important to note that this extension only applies to the filing of the tax return, not the payment of any taxes owed. Estimated taxes must still be paid by the original April 15 deadline.
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What are the common mistakes first-time filers make?
Common mistakes include failing to report all income, not claiming eligible deductions, and missing the filing deadline. First-time filers should double-check their returns for accuracy and consider using tax software or consulting a professional to avoid these pitfalls.