It's Tax Time, Millennials

Tax preparation is a legitimate fear Millennials have, according to a recent Harris Poll conducted survey. Of those surveyed, 80 percent of respondents aged 18 to 34 reported fear over filing.

Compared to older respondents, Millennials were 20 percent more likely to indicate they held concerns of making mistakes, not receiving the refund they were eligible for and/or paying too much.

According to the Harris Poll results, questioning Millennials are more likely to ask family or friends about their concerns (34 percent) than looking to tax professions (27 percent), the IRS (9 percent) or online sources (20 percent). The average tax payer, on the other hand, is more likely to rely on the expertise of tax professionals if concerns arise.

Furthermore, Millennials were less likely to hire tax professionals than their older tax paying counterparts, with only 17 percent of respondents indicating they hire professional preparers, compared to the national average of 29 percent.

While independent tax preparers are not well regulated compared to even vocational professions, as highlighted by the Pew Charitable Trust, going to friends and family for tax advice is by far the riskiest solution to deep-founded tax concerns.

Related Link: Californians: Is Your Tax Preparer California Approved?

Things To Think About This Tax Season

Consider the benefit of hiring a professional to help guide you through filing your taxes this season. While not all tax preparers are top of their field, there are ways to ensure you receive the most bang for your buck.

• Make sure that whoever you hire has a Preparer Tax Identification Number.
• Make sure they have the appropriate certification.
• Ask if they are willing to represent you in the event of an audit.
• Make sure they are willing to sign your return.
• Ask what their specific credentials are.
• Ask how much experience they have.
• Ask what types of clients they typically work with.
• Ask if they have experience handling taxes similar to your unique situation.
• Ask for specifics on eligible deductions.

If you do decide to file on your own, either electronically or via paper, there are things to keep in mind and keep you on track that can help eliminate overbearing fears.

• Start early.
• Don't rush.
• Double check everything.
• Triple check spelling and numbers.
• Standard Deductions have increased for 2015: Single ($6,300), Head-of-House ($9,250), Married Filing Jointly ($12,600), Married Filing Separately ($6,400)
• Alternative Minimum Tax exemption has decreased (Singles, $53,600; married filing jointly, $83,400)
• Personal and Dependent exemption amounts have increased: $4,000)
• Top Tax Rate for capital gains and dividends: 20 percent
• Gift exclusion remains at $14,000
• Estate tax exemption increased to $5,430,000 (for decedents who passed in 2015)
• Standard mileage rate for business deduction is $0.575/mile
• Be aware of increased penalties of not complying with the Affordable Care Act.
• Tax Deadline is later this year: April 18 versus the typical April 15 because of Emancipation Day.

Remember: Whether you plan on using a professional or tackle your taxes yourself, being prepared is crucial. If you need help, know where to look. Ask a personal finance expert about what documents you need to collect before you ever start. Make sure to take the time to gather all documents and understand what they are.

Ask questions. Be humble. Take responsibility.