It is not unusual for individuals to be angry or frustrated about paying taxes because there is a feeling of money being taken away without permission given. So what are U.S. taxes going towards anyways? Federal taxes are taken out by the federal government for things like investing in technology, education, our national security, prisons, health programs, and workers paid by the federal government. I don’t know about you, but I appreciate the security that our government provides. Some of the more common taxes for health programs are those of Medicare and Medicaid. Another more noticeable tax is Social Security. Social Security tax was designed to provide one source of income for individuals during their retirement as well as some disability income if an individual becomes disabled. State taxes go towards state specific initiatives. Some of the noticeable things that state taxes go towards are education spending, health care allocation, transportation, our corrections system and police, and more depending on the state itself.
Now that we have a basic understanding of the purpose of taxes, let’s talk about some options for filing. Don’t know where to start with your taxes? Don’t worry! Here are a few options for you. You only have to do one of the steps! If one doesn’t work move onto the next one! Remember, if you have any problems or issues reach out to the NEXUS Financial Discipleship Center at Indiana Wesleyan University, and we can walk beside you during this process!
If you are still a dependent of your parents, you can talk with them about having your taxes filed through the same resource they use, whether that be an online software or an accountant. Parents are often willing to help since dependents’ taxes are often less complicated than taxes one will file later in life. If that is not an option, go on to the next step.
Decide whether you are comfortable completing your own taxes. If you are not, contact a local accountant. Some local places in Marion, Indiana include Rea, Logan & Co, DWD, and Ewer & Moritz. If you would rather not pay someone to do your taxes, move onto the next step.
If you would prefer to do your taxes from the comfort of your own home, there are several online tax filing options as well! Two of the larger tax filing companies are H&R Block (https://www.myfreetaxes.com/) and Turbo Tax (https://turbotax.intuit.com/personal-taxes/online/free-edition.jsp). If an individual only has a W-2, filing should be pretty easy and can often be done at no charge. When additional information is required, the process is a little more challenging and may require a payment through some online filing resources. If you are wanting to go a step further and file your taxes completely on your own, move onto the next step.
If you are looking to file completely on your own, here are some good websites to look into for filing your federal and state taxes. While directions may not be as clear as the software discussed above, each of the websites will provide some guidance as you go!
Happy Tax Season!