While tax season is often thought of as a burden by many, those who need to consolidate debt and save money may actually be able to earn a substantial refund through their return, especially if it is their first time filing one as an independent.
According to representatives from the Jackson Hewitt Tax Service, taxpayers who will be filing their first tax return in 2010 have a number of considerations to keep in mind, particularly those who will be doing so as independent taxpayers.
"Many taxpayers become independent and begin to file on their own after graduating from college, and one of the most common areas to look for tax benefits is with education," said Mark Steber, chief tax officer for Jackson Hewitt Tax Service Inc. "If they had student loans, they should remember to claim the interest paid when filing. If they are still in school and paying their own tuition and fees, that’s another area to be sure not to miss."
Newly independent taxpayers can often qualify for a number of credits and deductions that can substantially increase a tax refund. Among the ones listed by the tax service were Making Work Pay credits, which can provide up to $400, an Earned Income Tax Credit for working taxpayers with wages, and Retirement Savers credits for those who invest in IRA or pension plans.
Taxpayers must report all of their earnings on their tax return, an must be in possession of a U.S. issued taxpayer identification number as well.