Article | 1:42 min read

Tax Tips for Less Than Experts

Budget and Save

As a young adult, you might think of taxes as some foreign concept—something to think about later rather than sooner. But your tax forms don’t have to be intimidating. In fact, there are plenty of tax benefits of which you may take advantage.

Tax forms and a pencil

Earned Income Tax Credit

The Earned Income Tax Credit helps people who are earning a low to moderate income, get a tax break. If you're single without children and earned less than $14,820, you might qualify for the Earned Income Tax Credit, putting an extra $503 in your pocket. If you're married or have children, that number goes up. So, if you had a summer internship, keep this in mind when filling out your taxes.

Saver’s Credit

It pays to save. As long as you're older than 18, you're not in school, and there's no one claiming you as a dependent, you're eligible for the Saver's Credit. When you put money into either your IRA or your employer-sponsored retirement plan, you can receive 0%-50% of that contribution back, depending on your income. Let's say you're single with no children and you made $15,000 this year. If you put $1,000 of that into your retirement plan, you can claim a $500 credit.

Student Loan

The average student loan debt in America is $37,013. One in eight Americans are affected by student loan debt. If you find yourself identifying with that statistic, look into possible tax breaks. You may qualify for a student loan interest deduction. You may deduct up to $2,500 or the amount of interest you paid during the year.

Job Searching

Job hunting can be a major headache. From applications to interviews, the process can be stressful and expensive. The tax man knows that. You can deduct many of these costs, such as printing and mailing a resume, or even traveling across the country for an interview. Just make sure you're keeping your receipts.

If you happen to get that job across the country, you can deduct your moving expenses. This covers a lot, too-from the cost of moving your household goods to pet transportation services. Uncle Sam can chip in for gas, too, at 22 cents per mile.

Being tax-savvy isn't the only way you can be smart with your money. Check out your options for a savings account and start preparing for your future.

Consult tax advisor


The information provided in these articles is intended for informational purposes only. It is not to be construed as the opinion of Central Bancompany, Inc., and/or its subsidiaries and does not imply endorsement or support of any of the mentioned information, products, services, or providers. All information presented is without any representation, guaranty, or warranty regarding the accuracy, relevance, or completeness of the information.