The information in this article is up to date for tax year 2025 (returns filed in 2026).
Filing taxes for the first time might feel overwhelming, but it’s totally manageable with the right steps. To get started, you’ll want to understand your filing status, gather your tax documents, and learn about potential deductions and credits you could qualify for. This guide will walk you through each step, helping you confidently file your taxes for the first time.
Key Takeaways
- Understand your filing status and income requirements to determine if you need to file a federal tax return.
- Gather essential tax documents like W-2s and 1099 forms to ensure accurate filing and maximize potential refunds.
- Choose between tax preparation software and hiring a professional based on your comfort level and the complexity of your taxes.
Know the Filing Requirements
First things first, figure out if you actually need to file a federal income tax return. Key factors include your income level, age, and filing status. For instance, single filers under 65 must file if their gross income exceeds $15,750 in 2025. Alternatively, you may need to file if you have more than $1,350 of unearned income, such as dividends or interest. It’s crucial to assess whether your total earnings surpass the set limits for federal income taxes, while recognizing the importance of filing income taxes to avoid any potential issues. Understanding these requirements is especially important if you’re a first time tax filer, so you don’t miss mandatory filing thresholds.
Determine Your Filing Status
When filing taxes for the first time, your filing status will impact your tax requirements, such as the standard deduction you can claim and eligibility for certain credits. Here’s a quick breakdown of each filing status:
- Single: For individuals who are unmarried or legally separated from their spouse.
- Married filing jointly: Couples who are married and choose to file a combined tax return.
- Married filing separately: Married couples who opt to file individual tax returns, often to separate liability.
- Head of household: Unmarried individuals who pay more than half of the household expenses and have a qualifying dependent.
- Qualifying widow(er) with dependent child: Individuals whose spouse has died in the last two years and who have a dependent child, allowing them to use joint return rates.
Each status has its own rules and tax benefits, so select the one that best minimizes your tax liability. ezTaxReturn can assist in determining your need to file and the most beneficial status. Once this step is complete, gather your essential tax documents.
Gather Essential Tax Documents
Gathering the right tax documents ensures accurate filing to file taxes. Common forms include W-2s from employers and 1099s for freelance work. You’ll also need records of retirement account contributions, property taxes, mortgage interest, charitable donations, and educational expenses. These documents prove income, deductible expenses, tax credits, and taxes already paid.
Self-employed individuals need forms like 1099-NEC or 1099-K and detailed records of business expenses. Check out our Tax Prep Checklist for a full list of what you need to file. Having all these documents ready will smooth the filing process and help a first time tax filer maximize their refund or minimize their tax bill.
Understand How Tax Deductions and Credits Work
As a first time tax filer, it’s essential to know how deductions and credits work so you can maximize your refund or reduce what you owe. Tax deductions and credits can significantly reduce your tax liability but function differently. Deductions lower your taxable income, thereby reducing the income tax you owe and the income taxes you may be responsible for. For instance, first-time tax filers may qualify for deductions like:
- Student Loan Interest Deduction: Deduct up to $2,500 of interest paid on qualified student loans.
- Retirement Contributions: Deduct contributions to a traditional IRA, which can lower your taxable income.
- Charitable Donations: Deduct donations made to qualifying charitable organizations.
- Medical Expenses: Deduct medical expenses exceeding 7.5% of your adjusted gross income.
- State and Local Taxes (SALT): Deduct up to $40,000 of state and local taxes paid.
- Mortgage Interest Deduction: Deduct interest paid on a mortgage for your primary residence.
- Self-Employment Expenses: Deduct business-related expenses if you have self-employment income.
In contrast, tax credits directly reduce the tax you owe. Here are some tax credits available this year:
- Earned Income Tax Credit (EITC): Provides a credit to low-to-moderate-income workers and families, potentially increasing your tax refund.
- American Opportunity Tax Credit (AOTC): Offers up to $2,500 for educational expenses during the first four years of college.
- Lifetime Learning Credit (LLC): Provides up to $2,000 for qualified tuition and related expenses, beneficial for those pursuing higher education.
- Child Tax Credit: Offers a credit for each qualifying child under the age of 17, helping to reduce your tax liability.
- Saver’s Credit: Encourages low-to-moderate-income individuals to save for retirement by offering a credit for contributions to retirement accounts.
Knowing these options can help you choose the most beneficial and lower your overall tax bill.
Choose How to File Your Taxes
You have two main options for filing your taxes: using tax preparation software or hiring a tax professional. Each has pros and cons, depending on the complexity of your financial situation and your comfort with tax forms.
Using Tax Preparation Software
Tax preparation software can be invaluable for a first time tax filer, offering step-by-step guidance through the entire process. These tools handle calculations, determine necessary forms, and find eligible credits and deductions. We guide you through by asking straightforward questions about your life, finances, and income, simplifying the experience.
Upon completion, the software calculates your maximum refund and files your taxes electronically or via paper, based on your preference. ezTaxReturn offers FREE federal returns for filers with a simple tax situation. See if you qualify. We also offer multilingual customer support for additional help.
Hiring a Tax Professional
For complex financial situations, hiring a tax professional or tax professionals can be a wise investment. Verify the credentials of your tax preparer to ensure they are qualified and reliable. Use secure portals to share documents and protect your personal information. Although the cost ranges from $100 to $300, the peace of mind and potential savings can be worth it.
Report All Income Accurately
Accurate income reporting avoids legal issues and penalties. This includes all income types such as wages, salaries, tips (earned income), and investment returns (unearned income). Self-employed individuals must report earnings of $400 or more, which contributes to their adjusted gross income.
Underreporting income can result in fines and even criminal prosecution in severe cases. Accurately reporting all income sources keeps you compliant with tax laws and avoids unpleasant surprises from the IRS. This step is especially important if you’re about to file taxes for the first time, as mistakes can be costly.
Pay Any Taxes Owed or Claim Your Refund
After calculating your taxes, either pay any taxes owed or claim your refund. Payment options include direct debit from a bank account, credit or debit cards, and the IRS website. Using a credit card can earn rewards, but ensure you pay it off immediately to avoid interest charges. If you can’t afford the full amount, the IRS offers payment plans, including installment agreements to manage tax debts over time.
E-filing your return can expedite the refund process, especially with direct deposit. The IRS issues most refunds within 21 days.
Safeguard Against Identity Theft
Identity theft is a serious concern during tax season. Thieves use stolen information to file fraudulent tax returns and claim refunds in the victim’s name.
Protect your identity by using strong, unique passwords for online tax accounts and avoiding phishing scams by not clicking on suspicious links. It also helps to file your taxes early. Once your return has been accepted any fraudulent returns filed using your information will automatically be rejected.
Double-Check Your Return Before Filing
As a first time tax filer, reviewing your return carefully ensures accuracy and helps you avoid common mistakes. Before submitting, double-check your tax return. Review it line by line for mistakes like incorrect names, addresses, and Social Security numbers. Ensure all tax credits and deductions are accurately calculated and the appropriate forms are completed to avoid delays or audits.
Mistakes on your tax return can delay refunds or trigger an IRS audit. Accurate income reporting helps avoid penalties and legal issues from underreporting.
File Your Tax Return
The deadline for filing taxes is April 15, 2026. If you need more time, file for an extension by Tax Day, which will extend the due date to October 15. However, your tax bill is still due on April 15, even with an extension.
Failing to file when you owe money results in fees, penalties, and interest. If due a refund, there are no penalties for not filing, but it’s best to file to receive your money.
You may also need to file a state tax return in addition to your federal tax return.
Use Your Tax Refund Wisely
Receiving a tax refund can feel like a windfall, but using it wisely is key. Paying off high-interest debt saves money on interest payments. Building an emergency fund provides financial security for unexpected expenses.
Contributing to retirement accounts like a traditional or Roth IRA can enhance retirement savings. Alternatively, donating part of your refund to community organizations fosters social responsibility and connection.
Consider Adjusting Your Withholding
If you received a large tax refund or had a significant tax bill, consider adjusting your withholding. The IRS recommends reassessing your withholding, especially after life changes like marriage or the birth of a child.
Adjustments can be made using the IRS Tax Withholding Estimator. Fine-tuning your withholding allows you to take home more money each paycheck or avoid a large tax bill next year.
Summary
If you’re a first time tax filer, the process doesn’t have to be daunting. By understanding your filing status, gathering the necessary documents, and utilizing available deductions and credits, you can confidently navigate tax season. Remember to double-check your return, file on time, and use your tax refund wisely. With these steps, you’re well on your way to mastering the art of tax filing. Happy filing!
Frequently Asked Questions
How do I know if I need to file a tax return for the first time?
The IRS recommends checking whether your income meets the filing threshold, which depends on your age, filing status, and income type.
What documents do I need to file my taxes for the first time?
You’ll need forms that report your income, such as W‑2s, 1099s, and receipts for deductible expenses, before you can file your return.
What filing status should I choose as a first‑time filer?
Your filing status is based on whether you’re married and how much you contribute to household expenses. Choosing the correct status affects your tax rate and eligibility for credits.
What steps are involved in filing taxes for the first time?
The IRS outlines key steps:
- Check if you need to file
- Gather your documents
- Claim credits and deductions
- File your return
- Get your refund
- Pay any taxes owed on time
Can I file my taxes online as a first‑time filer?
Yes. You can file electronically using online tax software or IRS‑approved partners, which is the fastest way to get your refund.
How can I avoid mistakes when filing my taxes for the first time?
ezTaxReturn guides you step-by-step and checks your return for common errors so you can file confidently and avoid delays.
What if I need more time to file my first tax return?
You can request an extension but remember that an extension to file is not an extension to pay any taxes you owe.
Do I need to file even if I made very little money?
Even if you’re not required to file, the IRS notes that you may want to because you could receive money back through refundable tax credits or withheld taxes.
What happens after I file my tax return?
Once you file, the IRS processes your return and issues a refund if you overpaid. Filing early can help you get your refund sooner.
The articles and content published on this blog are provided for informational purposes only. The information presented is not intended to be, and should not be taken as, legal, financial, or professional advice. Readers are advised to seek appropriate professional guidance and conduct their own due diligence before making any decisions based on the information provided.
