Information to make taxes easier for first-time filers
The U.S. tax code is one of the most complicated things out there. Even experienced professionals who have spent their entire careers dealing with it can still be confused about some of the finer points. If you’re just starting out and have never filed a return before it can be incredibly daunting.
Thankfully, RapidTax has assembled a collection of questions that frequently confuse first-time filers. The information here is hardly complete, but it should serve as a basic introduction to the world of taxes. If you need more information about a particular topic, trying searching for what you need in the sidebar; there are tons of great articles on the RapidTax blog that could answer your question.
But that’s the great thing about RapidTax: it makes filing taxes so simple you don’t have to bother with all that information. Get started on your return now to see for yourself.
Federal taxes vs. state taxes
When most people file their taxes, they have to file both a federal income tax return and a state income tax return. These are two different returns and you may very well be charged extra for preparation of the state return.
State taxes include many variations of course. Some people don’t have to file a return at all if they live and work in one of the states without an income tax. Some people may even have to file multiple state returns, as you generally have to file in any states where you lived or worked during the tax year.
What is a federal tax PIN number?
When people still filed traditional paper returns they would sign it, to signify that they were who they claimed they were and that everything contained in the tax return was accurate. With the invention of e-file, however, the IRS had to come up with a new way for people to sign their returns.
When e-filing your return you have essentially two options: you can either enter your prior year AGI (adjusted gross income) or your prior year PIN. PIN stands for Personal Identification Number and consists of any five digits (except five zeros) you choose to use as your electronic signature.
If you can’t find your prior year AGI or PIN but did file the previous year you can request an Electronic Filing PIN online. This PIN is temporary and expires after that tax season. You should keep your return in your records and use your AGI or regular PIN when you file the next year.
If this is your first time filing, don’t worry. You can still e-file your return. Just enter “0” for your prior year AGI and leave the prior year PIN field blank. You will then be given the option to create a PIN. You won’t be able to use the PIN for this year but you’ll be able to use it next year. For this year you will have to authorize your tax preparer to use their PIN on your behalf. Just follow the instructions provided by your tax preparer at this stage in the process.
The beauty of filing your taxes on RapidTax is that it’s ridiculously simple, even for first-time filers. You don’t need to research a ton of tax information – just let the online application take care of it for you. And if you do have any questions, you can always ask one of our tax professionals by phone, live chat, or email.
Photo via JD Hancock on Flickr.
