Not filing your taxes can mean missing out on a tax refund at best and facing failure to pay penalties at worst. Even if you don’t technically need to file (for instance, you made less than the standard deduction), it’s a good idea to do so anyway to make sure you aren’t leaving Bookkeeping for Etsy Sellers any money on the table. As we said before, filing a tax return could mean getting a tax refund of any excess taxes that were withheld from your paycheck. So even if you made less than the standard deduction, it’s still a good idea to file. Another exception to the standard deduction limit is if you earned more than $1,300 in unearned income in 2024 (typically from investments or interest rather than a job). If, for example, you invested in crypto or traded stocks as a minor, you may be required to file a tax return even if you made less than the standard deduction.
Other Online Certified Tax Software To File Taxes
You’ll get alerts to changes in your credit report, which can help detect possible fraudulent activity. You can also pay your taxes with a debit or credit card, but keep in mind that there will be fees involved. I bought my first home in 2023 and wanted to claim all the tax benefits I could. If not, don’t itemize, because the standard deduction will save you more money.
Who are newcomers according to the CRA
In addition, a minor with income from self-employment may owe Self-Employment Tax, which means paying both the employee’s and employer’s share of Social Security and Medicaid taxes. The income trigger for owing tax for self-employment is $400 in 2024. You start paying taxes when you begin earning income, not at the age you become an adult in your province or territory. If you owe money to the government and don’t file by the deadline of April 30th, the government will impose penalties on the amount you owe. It was a no-hassle way to file taxes, and all I needed to do was sit with him for a quick 15-minute chat and bring all the necessary documents. I’m a bit of a planner and prefer to how to file taxes for the first time at 18 wait until I’ve collected everything before I begin the tax filing process.
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- The IRS has a database of Volunteer Income Tax Assistance (VITA) sites that you may be able to use, and many are located on college campuses.
- But just because you don’t have to file a tax return doesn’t mean you shouldn’t file.
- Last but not the least, talk to your parents to see if they’re claiming you as a dependent on their taxes this year.
- Let’s walk through how to file your taxes for the first time.
- The Internal Revenue Service (IRS) uses your tax filing status to determine the requirements for filing your tax return.
Parents’ election to report child’s interest and dividends
You can start filing your taxes as early as mid-February, and the deadline to file is April 30. When April 30 falls on a weekend or holiday, the CRA extends the tax deadline to the next business day. Both the federal government and each province or territory have their own tax rates and brackets. You can check out this blog How to identify your income tax bracket to see what tax rates apply to your province or territory. Let’s start by defining income – this is the money that you earn from sources like a job, owning a business, or from investments. If you’re earning income, you must give a portion of that money to net sales the government to pay for the essential services mentioned above.
Government information
If your tax bill is not nil, you might want to look for other tax benefits for which you qualify. Some 2020 tax benefits include the home-office-expense deduction or the digital news subscription tax credit. You decided if you’re taking the standard deduction or itemizing all the way. As a first-time tax filer, this step should be pretty easy. Your filing status will help you know what your standard deduction is, how much you’ll owe, if you qualify for certain credits, and other official-sounding stuff like that.
- For those who want to do their own taxes, Free File means free tax preparation, free electronic filing and free direct deposit, which is the fastest way to get a refund.
- Commercial tax software like TurboTax or H&R Block offers user-friendly platforms, though fees may apply.
- If they had income tax withheld from their paycheck, they may be eligible for a tax refund.
- Any delays will attract a 5% penalty plus a 1% interest for every month of delay.
- Of course, you’ll have to pay a fee, which varies by the tax preparer and complexity of your taxes.
- We file taxes to ensure we get the benefits, credits, and services we are eligible for yearly.
Be sure to file by the deadline to avoid a delayed refund or any potential failure to pay penalties if you owe taxes. But learning how to file taxes for the first time doesn’t have to be scary. If you run into any questions about your unique tax situation, it is never a bad idea to enlist the help of a tax professional.