1. Start with a folder. That mess of papers and emails is only going to spike your anxiety levels. Lisa Greene-Lewis, a certified public accountant, recommends placing a designated tax folder right next to where you collect your mail. "That way, as your W-2s and 1099s start to roll in, you can keep everything together." Also print out all tax documents from your student loans, bank statements, and any investments. Here are some key documents you might need (you might be able to get them digitally from your employer or bank):
W-2: If you work for an employer.
1099: If you are self-employed or worked as a contractor or freelancer.
1098: If you own a home and have been paying mortgage interest, this'll tell you how much you can deduct. It may also show property taxes, which you can deduct too.
1098-E: If you paid over $600 in student loan payments. (Anything less than $600, you may not receive a 1098-E, but don't forget interest—you can still deduct that.)
1098-T: If you have eligible higher-education costs.
Settlement statement or HUD-1: If you purchased or refinanced a home.
__2. Don't miss a deduction.__Deductions lower your overall taxable income— and the smaller your taxable income, the smaller your tax bill. Here's an example: If your salary was $50,000 dollars last year, and you contributed $5,000 into your 401(k), your taxable income would go down to $45,000, and your taxes would decrease accordingly. The same is true for these other common expenses
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