22% of Millennials and Gen Zers Don’t Know How to File Taxes. Here Are 4 Things You Should Know if You’re in the Dark, Too

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Keep these points in mind if you’re stressed about taxes or feel ill-equipped to file yours. 

Dealing with taxes is a task many of us would be happy to avoid. But the reality is that many people are required to file a tax return (you can potentially get out of it if your income is really low), so it’s important to tackle your taxes in a timely and efficient manner.

But in a recent Insuranks survey, 22% of millennials and Gen Zers said they don’t know how to file taxes. If you’re part of that group, here are some important things you should know.

1. The filing deadline is April 18

This year, taxes are due on April 18. They’re normally due on April 15, but because the 15th falls on a weekend and the following Monday is a Washington, D.C. holiday, the tax-filing deadline is moved to Tuesday the 18th.

Now, it’s never a good idea to leave your taxes to the last minute. But you should also know that if you get your taxes done early this year and find out that you owe the IRS money, you won’t have to pay your tax bill until April 18.

Also, if you don’t have the money sitting in your bank account to pay your tax bill in full, the IRS will generally allow you to pay it off in installments over time. Or, in some cases, charging a tax bill on a credit card could work in a pinch (though that’s generally not the most ideal or cost-effective option).

2. You may be eligible to file your taxes for free

If you earn $73,000 or less, you may be eligible to file your taxes at no cost. You can use the IRS Free File tool to get guided tax prep help. However, you’ll need a bunch of tax documents to get started, so make sure you have records of your wages from your employer and of any earnings you took in on the side in 2022.

3. Filing electronically is preferable to filing on paper

Paper tax returns are still a thing, but filing electronically could be a much better choice for you. For one thing, using tax-filing software will make you less likely to fall victim to incorrect math. Also, using software might result in a much faster refund, since the IRS typically processes electronically filed returns more quickly than it does paper ones.

4. A tax professional could be worth paying for — even if your situation isn’t so complicated

If you’re clueless about installing appliances, then you should probably hire a contractor to do the work, right? Well, the same goes for taxes. If you don’t feel equipped to tackle your upcoming return solo, get help. There’s no shame in hiring a tax professional, even if your situation isn’t particularly complex.

And who knows? You may find that the fee you pay for tax help pales in comparison to the savings your tax preparer helps you eke out.

It’s okay to feel like you’re in the dark about taxes. Luckily, there are plenty of resources at your disposal to get through this year’s tax season. And if you still don’t feel comfortable doing your taxes yourself, don’t hesitate to outsource that task to someone who knows what they’re doing.

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