What young people need to know about taxes. Seven Useful Tips

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The deadline for filing tax returns (April 15) is getting closer, so it's time to check all your loans and deductions. If you are still young and not so experienced in filling out declarations, you need to remember some important aspects that will help you to avoid additional tax audits.

1. Coordinate your plans with parents

If parents plan to list you in their declaration as a dependent, this may affect your status when filling out the documents. Especially if you still live with them and get financial support from them. Parents, by law, may declare in declarations of children up to 19 years or students up to 24 years studying at full load and not having the opportunity to earn. However, if you already have a job, you need to fill out a declaration separately from the parents.

2. Tax deductions when studying

Educational loans allow deductions of up to 2,5 thousand dollars. You can not detail the amounts that are on hold, but keep in mind the existing limits on income. In addition, there is an American Opportunity Tax Credit educational loan, which allows for deductions up to 2,5 thousand dollars during the first four years of study, and Lifetime Learning Credit, covering up to 2 thousand dollars for academic courses or advanced training programs.

3. Fill in online

90% of taxpayers fill out their declarations electronically, which significantly saves time and reduces the likelihood of error. Experts advise young people to also fill out files online. Also on site IRS.gov This can be done for free.

4. When moving, you can write off expenses

In the event that you have moved a distance from 80 km from your previous place of residence, you can write off the costs of relocation, including the transportation of your belongings. At the same time you need to work in a new place for at least 39 weeks. In addition, these costs relate to newly graduates of universities and colleges.

5. When buying a house, you can reduce the percentage of mortgage

You need to confirm your deductions if you are the owner of the property in order to lower the interest on the mortgage. Also on site IRS.gov You can check what other tax deductions are available to you. For example, the cost of improving energy efficiency.

6. Tax deductions for children

Parents can claim back up to $6 in child care costs for two or more children if both parents work and pay for child care. In addition, tax payments based on $1000 per child support are available for those with high incomes—from $110 for married parents filing jointly, and from $75 for individual taxpayers.

7. How to be in case of a name change

Newlyweds, as experts note, often after changing their name, they forget to inform the social insurance department about this. In the future, this leads to problems with the return of funds for tax reporting. It is necessary to carefully check everything before filling in the data in the system in order to avoid difficulties and additional checks by the tax authorities.

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