Tax help for millennials

A single American taxpayer can end up owing Uncle Sam a lot of money for taxes if they don’t take into account ways to deduct or chip away at their taxable income over the year. While Travis Credit Union advises people to consult with their tax advisors about their income tax filings, here are a few basic tips to help you prepare as tax season approaches:

Deduct proper amount from paychecks

Review your W-4 to determine what would best number of exemptions for you. Some people may be more comfortable receiving a large tax return each year, while others would rather owe the U.S. government at tax time. It all depends on you and your tax advisor’s advice about the number of exemptions to claim on your W-4.

Use software to file taxes

If your taxes are simple and straightforward, you may use online software such as TurboTax to complete them. These tax software programs are updated each year with the latest changes. They take a step-by-step approach with tax preparers, so you can complete them at your own pace and gather the necessary documents and information as needed.

Credits for certain filers

Young adults or students who fall within certain income guidelines can qualify for credit on their tax returns. For instance, one of the more well-known credits available to certain tax filers is the Earned Income Tax Credit. This is available to anyone 25-65 years old and varies depending on income level. Your tax advisor or the IRS will have more information on whether you qualify for this credit.

There are also credits for people who save money to their 401(k) plans, if they earn up to a certain amount, students who pay tuition, home owners and parents. The IRS or your tax advisor will have a full list of credits available if you qualify.

Free TurboTax offer for Travis members

Travis Credit Union has again partnered with TurboTax to provide our members with free access to the basic program each year. Please visit the TurboTax offer for details.