Riverwoods, IL (Vocus) January 26, 2007 -- Along with the first job and a first apartment, another rite of passage into adulthood happens for millions of young Americans each spring: the first time filing
income tax returns by themselves. And, although hundreds of millions of Americans have made this transition over the past 90-plus year history of the modern U.S. income tax, it really has gotten more complex to do your taxes than it was even 10 years ago, according to CCH, a Wolters Kluwer business and a leading provider of tax and accounting information, software and services.
"The instruction manual alone for the
Form 1040 is 84 pages, not including 60 additional pages to explain the accompanying 1040 schedules," said David Bergstein, CPA, a tax analyst for
CCH CompleteTax, an online tax program for the do-it-yourself tax filer. "That's intimidating for anyone, let alone someone who's filing his taxes on his own for the first time."
Below, CCH outlines what individuals coming of income-tax age need to know as they head out on their maiden income tax voyage.
Do I need to file a tax return?
Assuming you are at least 18 years old and your 2006 gross income is at least $8,450 (or $16,900 if married filing jointly), you generally have to file an income tax return. If you are under age 18, your parents can include your income on their return. Even if you do not otherwise have to file a return, you should if you want to get a refund of any
federal income tax withheld. You also should file if you are eligible for any credits, including a special federal
telephone excise tax paid credit available to all eligible households for 2006.
What information do I need to start to prepare my return?
Among the key materials you should have on hand when you start working on your
tax return:
• Your tax return from 2005. So, if your parents are still holding on to your records from last year, make sure you get them before you start preparing your 2006 return. Also, if you got married this year and you and your spouse are filing jointly, you'll need your spouse's tax return from last year as well.
• Your Social Security number as well as the Social Security number for your spouse or children, if applicable.
• All W-2s (the form from your employer listing your wages and taxes withheld during 2006), 1099s (statements related to dividend income, proceeds from selling mutual funds, etc., provided by your financial services institutions), and mortgage interest statements or other statements related to income such as bank or brokerage statements.
• All statements related to expenses that you hope to claim on your tax return, including receipts from charitable organizations.
• Your bank's name, your routing number and account number if you are expecting a
tax refund and want it deposited directly into your bank account (all this information can be found on the front of your checks).
"You should have a single file where you keep this information, so you can check items off the list as you gather them, and then contact institutions if... To read the press release in full goto http://prweb.com/releases/2007/1/prweb500245.htm