Daily Money Tip: Fear not, first-time tax filers

Are your children or grandkids filing tax returns for the first time? Ken Yoder, tax manager at the Philadelphia-based accounting firm ParenteBeard, offers tips for novice tax filers. As the April 15 deadline for individual tax filings approaches, Yoder suggests the following:

Review annual income. For first-time filers, such as new college graduates, review your annual income. Then sit down with your parents or an accountant to determine if you make enough to file taxes.

It doesn't matter how old you are; your income - not your age - determines when you should begin filing. There are thresholds of income, as well as whether you are still a dependent claimed by your parents or others, that determine if you are required to file.

Hit the deadline. Individuals are required to file by April 15. Taxpayers can request an extension to file by Oct. 15, but this is an extension to file, not an extension to pay. Taxpayers are still required to pay what they owe by April 15.

Collect paperwork. Companies are generally required to provide a W-2 to their employees by Jan. 31. As soon as you receive a W-2, begin collecting other information for the return, including charitable donations and work-related expenses, like commuting (even bicyclists can get a commuting tax credit).

Tuition deduction. In most cases, parents claim their children who are attending college as dependents and claim a tuition deduction. But some parents have an income above the threshold that allows them to take this deduction. In those cases, it makes sense for students to claim it themselves and take advantage of the deduction.

Beware March 31.

Don't forget to purchase health insurance by March 31, if you aren't already covered. This won't affect your 2013 tax return, but uninsured Americans who fail to enroll in an approved health insurance plan under the Affordable Care Act by the end of March could incur a penalty on their 2014 returns.

March 31 is the open enrollment deadline, the last day you can sign up for 2014 coverage unless you faced a life-changing event. Although the law requires coverage for all of 2014, the government isn't going to enforce the penalty on the months you didn't have coverage - if you choose a plan by March 31 and are covered by May 1.