Whether a young Massachusetts resident starts a new job, starts college classes or takes some other step into adulthood, it represents a new beginning, and an exciting and pensive time in that person’s life. Becoming an adult comes with numerous responsibilities and one of them is paying taxes. The beginning of a new taxpayer’s relationship with the IRS can be stressful.
The first hurdle is determining whether it is necessary to file, which may be a good idea even if it is not necessary. Certain tax breaks could lead to a refund. These young taxpayers may be told that they only need to gather the relevant documentation to be sure.
The problem is knowing for sure what that documentation is. Then, the filer needs to choose the right forms. The required forms can vary depending on whether the taxpayer earns all income from an employer, works and has a side hustle, or owns a business. Other tax considerations may also come into play for those who have stocks or anything like that. Many young people these days already have complex tax situations to consider.
Even when Massachusetts taxpayers who have filed numerous returns over the years believe they have correctly calculated how much they owe, the IRS can disagree. New taxpayers can easily make a mistake that could draw the agency’s attention. In addition, tax software is only as good as the information entered into it. If the IRS claims a new taxpayer did something wrong, or if he or she is not sure if everything is right, those concerns could be addressed by discussing the situation with a Massachusetts tax attorney.