Entering the real world after graduating from school is daunting enough, let alone all of the other ‘adult’ responsibilities that have suddenly fallen onto your plate. Often, young adults feel that this time in their lives is very overwhelming, and money problems are at the root of their issues. Want to combat those recent graduate blues and get on track to financial success? Follow our financial and tax tips from E&Y Tax Preparation Services!
- Keep a budget – Budgeting is the most important factor for any financial venture. Your budget will determine what you have, what you need, and what you can financially do. A budget can be as loose or specific as you want it to be, but we recommend, at least once, breaking things down, penny by penny. Online companies, such as Mint, will help you track your spending habits by category, and can often make the grand scheme of financial planning easier to understand. Don’t think your social life is cutting into your actual expenses? It’s time to budget and find out!
- Stay thrifty – When you were in college, you were most likely on a tight leash when it came to money. Between student loans, a lack of income, and social activities, you got pretty good at picking and choosing what was financially important. Now is not the time to stop! While we’re ecstatic that your new full-time job has you bringing in the bucks, you’re not necessarily at yacht-living quite yet. Make sure to put away some of your hard earned money into a savings account, start a retirement fund, or stock away for your first home. Once you’re able to reach those goals, you’ll be grateful that you started now!
- Track your moving expenses – Did your new full-time job come with a complete transplant from your previous living dwellings? If you had to move to gain your first job out of school, and paid for your own expenses out of pocket, make sure to keep the receipts. These expenses may be tax deductible. How will you know if they are tax deductible?
- The expenses must have a connection to when you started your new job, and where it is located.
- The expenses must pertain to a job that is at least 50 miles away from where you previously lived.
- The expenses must be related to a position(s) – doesn’t have to be just one – that you worked at for 39 weeks, over the past year.
- Keep track of student loans – The interest you’ve been paying on your student loans is tax deductable, if you fall into a few categories based on income. The only way, outside of income, that this is not tax deductible is if you are claimed as a dependent. Want to see if your income allows you to deduct your student loan interest? Set up a meeting with one of our tax professionals at E&Y Tax Preparation Services to see how much you can save!
- Organize your job hunting – Job hunting deductions are a great way to save yourself some money during tax time, but they aren’t applicable to your first job. If you are switching positions, and stay in the same field or career, you are able to deduct any expenses related to job searching. Factors such as travel, personal expenses, and miscellaneous items that apply, are all lumped together and put against 2% of your adjusted gross income.
Do any of these money saving tips apply to you? Call E&Y Tax Preparation Services to see how we can help you save more money this coming year on your taxes! (248) 362-1313