You’re fresh out of college and you’ve got a decent new job (hopefully). You’re managing your finances, paying your bills, and saving where you can. Everything is humming along. And then you stumble across an article on the web that’s talking about end-of-year tax tips. You gasp and think, “Yikes! This will be my first time filing my taxes on my own – where do I start?”

Chances are, if this sounds familiar, you’re parents have filed for you as a dependent all your life. (There’s absolutely nothing wrong with this. In fact, you should thank your parents for it.) So now that your independent, here are a few end-of-year tax tips that will help you through the process.

• Deadlines. We all know April 15 is Tax Day – and that’s an important date. However, equally important is December 31. When you file your taxes in April, you’re filing them for the previous year. While this may seem inconsequential, there are a number of things you can do prior to December 31 to maximize your return. Make a checklist of what paperwork you’ll need from your employer. Same goes for past employers (think last summer’s job). Be sure to collect your W2s 1099s for all places of employment over the last year. If charitable contributions are important to you, make them before New Year’s Eve. Visit irs.gov to get a sense for what your particular situation calls for. Get a copy of last year’s return from your parents. Do some research and find out what tax bracket you fall into. (It’s likely that you’re in the “28% or lower” federal tax bracket but there’s state too.) And don’t forget to manage your out-of-pocket expenses – things like work travel, meals and other business-related costs.
• Determine Your Method. Depending upon your particular situation, filing can be challenging. It might make sense to get some help. Consult friends or family and see if they have any recommendations on tax preparers. Or, go online and evaluate some of the big tax prep companies like H&R Block or Jackson Hewitt. You can also explore desktop or web-based software like TurboTax. Our tax experts here at BIDaWIZ.com are more than happy to help guide you as well. Bottom line, it’s important to determine your method of filing as early as possible – and always verify credentials, fee structures, and exactly who will be doing your tax work.
• Invest the Max. We’re not talking about going out and buy a bunch of stock. Instead, we’re talking about smart investments that you can make pre-tax. Have you opened up a 401(k)? If so, dump as much money in there as you can. Note though, that the maximum amount you can contribute in 2010 is $16,500 (we’re pretty sure that’s not a cap you’re worried about). Also explore Roth IRA conversion options. If you have an IRA, converting it to a Roth IRA in 2010 might make sense as it allows your earnings and principal to grow tax-free.

These are just a few tips for first time filers. There are plenty more that will apply to your specific situation. What’s important is that you always remember that when it comes to filing your taxes – especially the first few times – there’s no such thing as a dumb question.

Dave Clarke is the Communications Strategist at GetRaised.com, a recommendation engine that will show you if you’re underpaid – and give you the tools to do something about it.

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