A First Timer’s Guide to Tax Filing in 2022: TaxAct’s® Tips for Young Professionals

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This content was created by FOX News’ Branded Content Studio in partnership with TaxAct. FOX Business editorial was not involved in the creation of this content.

 

For young professionals, the prospect of filing taxes for the first time may seem daunting. The tax code reads to many like an unlearned language, and on top of that, it has changed in recent years (most notably with the Tax Cuts and Jobs Act of 2017 and with COVID-19 relief bills like the American Rescue Plan of 2021). While these changes are significant, the experts at TaxAct®, a leading provider of affordable tax preparation solutions in the US, offer useful tips and services for those tackling their maiden tax season in 2022.

Mark Jaeger, Vice President, Tax Operations at TaxAct®, said it is important to treat each tax season individually and with thorough detail. It is not always like riding a bike. 

"Taxes would be equivalent to changing where the pedals are located on the bike, and where the handlebars and where the brakes are each and every time a new bike comes out," says Mark Jaeger, Vice President, Tax Operations at TaxAct®. He goes on to say that filing taxes, while at first seemingly complicated, can be tackled with the help of TaxAct. 

"What you gain from working with TaxAct is time," Jaeger says. That is because the company is dedicated to empowering tax filers with timely, easy to implement, and comprehensive assistance at any stage of the tax filing process. While no one knows your life and your financial situation as closely as you do, TaxAct’s team of qualified professionals strive to see each customer’s whole picture, which is why the most important factor is making sure you have all your paperwork prepared.

There are some common documents that all new young professionals should expect to receive ahead of filing their tax returns. A W-2 reports full-time employees’ earnings for a calendar year, and conversely, a 1099-NEC does the same for gig workers. Another common document one should expect is a bank statement, and those who own or trade stock can expect 1099-Bs or 1099-DIVs to account for their capital gains and losses and dividends acquired as they relate to one’s said stock holdings.

There are several other factors to consider when you’re filing a tax return: retirement plans, health insurance costs and savings contributions can also be crucial factors that impact a filer’s taxable income, and ultimately, how much they get back in a tax refund.  With the tax filing deadline of April 18 on the horizon, TaxAct is a cost-effective option that helps filers to accurately complete their returns and is backed by their 100k Accuracy Guarantee*

"We try to breakdown the tax code into easy terms when we’re talking to customers. We want to make sure it’s a simple, delightful experience when an individual goes in to complete their taxes," says Jaeger.

TaxAct is designed to provide easy and comprehensive step-by-step guidance to help individuals and business owners prepare their taxes. Jaeger notes this is attributable to several key product features. Some of those features include easy import functionality, allowing filers to automatically upload a PDF of their prior year tax data to reduce help errors that can occur with manual entry, as well as ProTips, which are snippets of information located throughout the filing experience to help filers improve their tax outcome and financial wellness. TaxAct also offers its individual filers a complimentary report that identifies ways to boost next year’s refund called My TaxPlan™**.

Finally, Jaeger announced that TaxAct’s Xpert Assist*** offering is now free to all DIY filers for the 2022 tax season. Filers can now ask unlimited questions to CPAs and other tax experts for no additional charge. Jaeger also mentioned that TaxAct launched Xpert Full Service℠**** this season, which takes filing to the next level by allowing customers to securely submit their tax documents to a TaxAct tax expert for a personalized filing experience from start to finish.

Said Jaeger: "What’s most important to us is we want to be sure individuals have complete confidence when using TaxAct and can trust that everything they enter into the program is filed accurately."

With all these tax features and resources at one’s disposal from one of the market’s most cost-friendly options, those embarking on their careers can file their taxes confidently. To learn more, go to www.TaxAct.com.

  • * Read more about TaxAct’s $100k Accuracy and Maximum Refund Guarantee Page for more information.
  • ** My TaxPlan™: Your customized My TaxPlan features potential refund-growing opportunities and easy-to-follow instructions based on information you provide for your current tax return. Refund boost claimed in advertising calculated using recent IRS statistics and trade press regarding contributions to retirement accounts. We will highlight other potential savings, too, so your refund boost could be bigger.
  • *** TaxAct Xpert Assist: Available as an added service to certain users of TaxAct’s online, consumer prepared 1040 product. Service hours limited to designated scheduling times and by expert availability. Some tax topics or situations may not be included as part of this service. View full TaxAct Xpert Assist Terms and Conditions.
  • **** TaxAct Xpert Full Service: Xpert Full ServiceSM subject to availability restrictions at TaxAct’s sole discretion. Provided service is complete with filing of prepared federal 1040 return and any necessary amendments or extensions, and does not include access to other TaxAct products or features or returns with local or foreign filings or certain complex tax situations. View full Xpert Full Service Terms and Conditions for further details.