Tax season can be intimidating—especially if you’ve never filed a tax return. If this is the first time you’re filing a federal income tax return—or your 50th, but you feel like you need a refresher, here’s what you need to know.
You may not need to file.
First-time filers sometimes fall into the trap of believing that only full-time, permanent employees have to file and pay taxes. That’s not true. You may be required to file as a part-time or seasonal employee or an independent contractor.
But, not everyone needs to file a tax return.
Whether you need to file a tax return depends on your filing status, age, and gross income. You can figure that out using this chart:
For purposes of the chart, gross income means all income you receive in the form of money, goods, property, and services not otherwise exempt from tax. That includes income from sources outside the U.S. and from the sale of your main home or other assets, as well as losses from your business.
When figuring gross income, don’t include Social Security benefits unless you are married filing separately, and lived with your spouse at any time in 2024, or if one-half of your Social Security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly).
Even if you don’t have to file a tax return, you may want to file to get a refund of any federal income tax withheld. You should also file if you are eligible for any of the following credits:
- Earned Income Tax Credit (EITC)
- Additional Child Tax Credit (ACTC)
- American Opportunity Credit
- Credit for Federal Tax on Fuels
- Premium Tax Credit
- Credits for Sick and Family Leave
Talk to your parents.
College students, in particular, may not know whether they should file as independent or if their parents plan to claim them on their return.
These rules generally apply to dependents:
- A dependent must be a U.S. citizen, resident alien or national, or a resident of Canada or Mexico
- A person can’t be claimed as a dependent on more than one tax return (some exceptions exist)
- A dependent can’t claim a dependent on their own tax return
- You can’t claim your spouse as a dependent if you file jointly
- A dependent must be a qualifying child or a qualifying relative of the taxpayer (your spouse is never your dependent).
That said, while there is a clear definition available, your parents may assume that they are supporting you. I always recommend asking your parents what the plan is before you file your tax return. Keep in mind that you can still file a tax return if your parents claim you as a dependent, but in that case, you cannot claim yourself—no double dipping.
If you are a dependent, the rules for filing are a little different. Your filing status and age still matter, but the kind of income (more on that in a moment) also matters.
Income is income.
Despite TikTok videos and old-school blogs suggesting that only limited categories of income are taxable, it’s actually quite the opposite—it’s very broad.
Taxable income includes earned income (generally, wages, salary, tips, and net earnings from self-employment) and unearned income (like dividends and interest).
It includes gains from stocks, bonds, and cryptocurrency, as well as money you earn from your side hustles and hobbies. It may also include Social Security benefits. (Note that if you receive SSI—Social Security disability—those benefits are never taxable. And if your only source of income is your Social Security retirement check, your benefits are generally not taxable. But if you receive Social Security retirement benefits and other income, part of your benefits may be taxable.)
A good rule of thumb: When in doubt, assume it’s taxable.
You don’t have to haul in your filing cabinet.
While it’s true that you’ll need certain forms to file your tax return, most filers—especially first-time filers—don’t need to assemble lots of paper.
Here’s what you’ll want to have immediately handy:
If you work for another person or entity, you should receive a Form W-2 (if you’re an employee) or a Form 1099-NEC (if you’re an independent contractor).
If you work for yourself, you’re responsible for your own records. Hopefully, you’ve been tracking your income and expenses throughout the year (ideally in a separate account), but if not, this is a great time to review your bank and credit card statements and organize and annotate your records.
You may also receive Forms 1099-INT (if you received interest) or Forms 1099-DIV (if you received dividends) from your bank or brokerage account. If you sell stocks or bonds through a broker, including an online platform, you’ll receive a Form 1099-B.
Other forms you might expect include:
- Form 1095-A (health insurance statement)
- Form 1098-T (tuition statement)
- Form 1098-E (student loan interest)
- Form 1099-G (unemployment compensation)
- Form 1099-K (online sales)
(For a look at when to expect those forms, click here.)
As for those charitable receipts and medical bills? Most taxpayers—nearly 90%—claim the standard deduction, which was $14,600 for single filers and $29,200 for those married filing jointly in 2024.
You have to itemize to claim a slew of deductions including charitable donations, medical expenses, state and local taxes (including real estate taxes) and the home mortgage interest deduction—if the total of your allowable itemized deductions is less than the amount shown in the chart, you’ll claim the standard deduction. That means that unless you’ve recently bought a house, given a lot of money to charity, or experienced significant medical costs, as a first-time filer, you can likely leave the receipts at home.
(You can see other 2024 tax numbers, including the individual tax filing brackets, here.)
Know your due dates.
Tax Day is April 15, 2025, for most taxpayers. Taxpayers living in a federally declared disaster area may also have additional time to file (including individuals and businesses affected by wildfires and straight-line winds in southern California).
If you can’t file your return by Tax Day, you can request an extension. There’s no cost to file for an extension (although if you expect to owe, you may need to make a payment since an extension extends the time to file but not the time to pay) and they’re automatically granted.
Help is available.
I highly recommend using a tax professional. Be smart when you hire—rely on referrals and ask lots of questions. Keep in mind that your tax preparer should have a PTIN (Preparer Tax Identification Number). Ask in advance, or check out PTIN qualifications on your own by using the IRS online PTIN directory.
The IRS also offers free basic tax return preparation to qualified individuals through their Volunteer Income Tax Assistance (VITA) program. VITA sites offer free tax help to people who need assistance preparing their tax returns, including those who generally make $67,000 or less. You can find a VITA center or Tax Counseling for the Elderly (TCE) program near you here.
You might also consider using tax preparation software. Most programs have an interview-like format that walks you through the basics and then does the calculation for you.
If you qualify, you can use free software through IRS Free File. Typically, taxpayers with an adjusted gross income (AGI) of $84,000 or less in 2024 will qualify—click over to IRS.gov/freefile to see all Free File options. If you know which software partner you want to use, you can click straight through. Otherwise, you can select the “Browse All Trusted Partners” link to use an interview tool to help you find the best product for you (the IRS does not save, record, or share your information). After selecting one of the IRS Free File offers, you will leave the IRS.gov website.
You may also be eligible to use Direct File. During the filing season, Direct File will be available in 25 states: Alaska, Arizona, California, Connecticut, Florida, Idaho, Illinois, Kansas, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Washington, Wisconsin, and Wyoming. That means 62% of Americans will live in states offering Direct File.
(Once you’ve completed your federal tax return, Direct File will automatically guide you to state tools to complete your state tax filings.)
Direct File allows you to opt-in to automatically import data from your IRS account, including personal information, your IP PIN, and some information from your W-2 (you’ll want to have that handy). It’s similar to the experience you’ll have with commercial tax software.
This year, you can also try a new chatbot to help guide you through the Direct File eligibility checker. Live chat will be available in English and Spanish, and you can opt into additional authentication and verification, allowing customer service representatives to provide you with more personal information.
You can also check the IRS website for helpful resources. While you’re there, consider signing up for your IRS Individual Online Account. If you have a Social Security Number or an Individual Taxpayer Identification Number (ITIN), you can log in or sign up to securely access information about your federal tax account, view balance and payment options, view and approve authorizations from your tax professional, view digital copies of select IRS notices, and get information on your most recently filed return.
In addition to the resources above, the IRS has developed a Get Ready page on IRS.gov to highlight steps taxpayers can take to streamline the filing process.
It’s okay to make a mistake.
One last thing. While filing your taxes feels like a big deal, it’s not the end of the world if you make a mistake. If you spot your mistake before the due date, you can file a superseding return—that replaces the return you filed earlier in the tax season. If the due date has passed, you’ll simply file an amended return (Form 1040X).
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