3 Tax Tips for Procrastination Prone Millennials

This post is part of the TaxACT #BeatTheDeadline blog tour which shares tips on how to make tax time a smooth and easy process before the April 15deadline. TaxACT provides the tools and guidance to help you confidently file taxes easy and fast. Do your own taxes today at TaxACT. You got this.

Are you a millennial do it yourself-er that has a hard time with deadlines? And by that I mean, were you planning to do your taxes early on and for some reason the date has crept up on you? I realize that life gets in the way sometimes. And tax season is no different. If you still have to file your taxes, here are 3 simple tips for you; the procrastination prone millennial.

Pull Together All Tax-Related Documents

Take a few hours to organize. Get your W-2, 1099, student loan interest forms, dividend and interest paperwork, and any other tax related document that came in over the last few months. With all of these documents in front of you, it will be easier to cover all of your bases.

Any employers should have placed your W-2 in the mail by January 31st. Student loan interest forms typically arrive shortly afterwards, around early to mid February. Dividend and interest forms may come at a later date; however you can estimate the expected dollar amount using your monthly bank statements. Some investment companies have agreements in place to allow you to import your information directly into your tax filing software. For example, if you have an automated investment account with Betterment, you can import all of your gain and loss data directly into the TaxAct software.

Get Your Education Perks

As a millennial, you are likely either in college or have started paying back any loans from college. If neither of these situations describes you, keep reading, because you may have some education perks coming to you anyway.

Some college students are eligible for Education Tax Credits, while others will be eligible for a tax deduction based on education spending.

American Opportunity Credit: This was set to expire at the end of 2010 but was extended for an additional seven years through December 2017 by the American Tax Payer Relief Act of 2012. The full credit is available to individuals whose modified adjusted gross income is $80,000 or less, or $160,000 or less for married couples filing a joint return. The credit is phased out for taxpayers with incomes above these levels.

If you do not qualify for the American Opportunity Credit, you may qualify for the Lifetime Learning Credit. You cannot take the American Opportunity Credit and the Lifetime Learning Credit for the same student in the same year.
Lifetime Learning Credits: This credit can help pay for undergraduate, graduate and professional degree courses – including courses to improve job skills – regardless of the number of years in the program. Eligible taxpayers may qualify for up to $2,000 per tax return.

Use the Electronic Filing Option

Mailing tax forms is not the right strategy for a procrastinator. What if you make it to the post office too late or you forget a stamp? Instead, choose to electronically file your taxes, known as E-file. This will allow you to quickly and easily submit your taxes.

Not sure if you need to file taxes? Check out The Ultimate Tax Guide for Millennials for the answer.

Beating the tax deadline doesn’t have to be stressful. With TaxACT, everything you need to confidently prepare and e-file your taxes is right at your fingertips. You got this. File your simple or complex federal return FREE today with TaxACT Free Edition.