The video discusses essential tips for individuals filing taxes for the first time, addressing the lack of prior education on the subject. The presenter emphasizes the fundamental reasons for paying taxes, highlighting the need to fund the government and the obligation to complete both federal and state tax returns by the April 15th deadline.
Three main methods of filing taxes are outlined. The first, manual completion of tax forms, is deemed one of the least favorable options, particularly for beginners. The second involves hiring a professional, suitable for those with complex tax situations.
However, it is acknowledged as potentially expensive, especially for first-time filers.
The video recommends the third and most popular option—using tax return software. This method involves answering questions about income and deductions, with the software generating the tax returns. While some services come with fees, the video points out that many offer free use for individuals below a certain adjusted gross income threshold.
The presenter mentions specific tax preparation software options, including TurboTax, FreeTaxUSA, and TaxAct. Each is characterized by its ease of use, cost, and potential upselling tactics. The importance of having all relevant tax documents, such as the W-2 form from employers, is emphasized. The video concludes with a reminder to save a copy of the completed tax return for future reference.
