A Beginner’s Guide to Filing Taxes: Everything You Need to Know

Filing taxes for the first time can feel like navigating a maze blindfolded 🤯. With stacks of forms, confusing terminology, and a looming deadline, it’s no wonder many first-time filers feel overwhelmed. But here’s the truth: tax filing doesn’t have to be intimidating. If you’re not even sure how to file taxes yet, this beginner’s guide to filing taxes breaks everything into simple steps so you can file on time, feel less stressed, and increase the chances of getting any refund you’re entitled to.

Whether you’re a recent graduate, new to the workforce, or simply haven’t filed in years, understanding the basics of tax preparation can save you money, stress, and potential penalties. If you’re also saving for retirement through accounts like a 401(k) or Roth IRA, our retirement accounts and taxes guide shows how contributions and withdrawals can affect what you owe.

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Table of Contents

• Key Takeaways
• Do I Need to File a Tax Return?
• Understanding Tax Basics for First-Time Filers
• Essential Tax Documents You Need Before You File
• Quick Tax Filing Readiness Checklist
• Standard Deduction vs. Itemizing
• Choosing the Best Way to File Your Taxes
• Step-by-Step Filing Process for Beginners
• Important Deadlines and Extensions
• Refunds and Payments
• Record Keeping for Tax Season
• Common Mistakes to Avoid
• Frequently Asked Questions
• Conclusion

Tip: Read through once, then come back with your documents in hand and use the quick tax filing readiness checklist to follow along step by step.

Key Takeaways

• Gather all necessary documents (W-2s, 1099s, receipts) before starting your tax return to ensure accuracy and completeness.
• Choose the right filing method for your situation—free online tools work for most beginners, while complex situations may require professional help.
• Understand your filing status and deduction options to minimize your tax liability and maximize potential refunds.
• File by the April 15, 2025 deadline or request an extension if needed to avoid penalties and interest charges.
• Keep detailed records of your tax documents and filed returns for at least three years for future reference.

Do I Need to File a Tax Return?

Before you dive into forms, it’s natural to wonder: do you even need to file a tax return this year? For many beginners, this is the most stressful question. The short answer is that it depends on your income, filing status, and whether you’re claimed as a dependent.

Maybe you only worked a part-time job last summer or picked up a few side-gig paychecks and you’re not sure if that “counts.” Those are exactly the situations where it helps to pause and check the rules instead of guessing.

For the 2025 filing season (covering 2024 income), you generally must file if your gross income is at least the standard deduction for your filing status. That means most full-time workers will need to file, even if their taxes are mostly handled through paycheck withholding.

Filing Status	Typical Minimum Income to File (2024 income)
Single	About $14,600
Married Filing Jointly	About $29,200 combined
Married Filing Separately	Any amount of income
Head of Household	About $21,900

Even if you’re under these thresholds, you may still want to file to get a refund of taxes withheld or to claim certain credits. When in doubt, you can use the IRS’s official “Do I Need to File a Tax Return?” tool on irs.gov to double-check your situation.

If you earned money from self-employment or side gigs, you generally must file if your net self-employment income is at least $400, even when your total income is below the amounts in the table. For the most current thresholds and exceptions, check the IRS’s official filing requirement chart or Publication 501 on IRS.gov.

Action: Write down your total income for the year, including any side-gig earnings, then use the IRS “Do I Need to File?” tool to confirm whether you should file a return.

Understanding Tax Basics for First-Time Filers

If you’re filing taxes for the first time, a few core concepts make everything much less confusing. Once you understand how your filing status, income, deductions, and credits fit together, the forms start to feel a lot more manageable.

Tax Year vs. Filing Season 📅

The tax year refers to the calendar year for which you’re reporting income—in this case, 2024. The filing season is when you actually submit your return, typically running from late January through April 15, 2025.

Key Tax Concepts Every Beginner Should Know

Filing Status determines your tax rates and standard deduction amount:

• Single: Unmarried individuals.
• Married Filing Jointly: Married couples filing together (usually most beneficial).
• Married Filing Separately: Married couples filing individual returns.
• Head of Household: Unmarried with qualifying dependents.
• Qualifying Widow(er): Recently widowed with dependent children.

Taxable Income includes:

• Wages and salaries.
• Tips and bonuses.
• Self-employment income.
• Interest and dividends.
• Unemployment compensation.
• Rental income.

Tax Credits vs. Deductions:

• Credits reduce your tax bill dollar-for-dollar.
• Deductions reduce your taxable income.

Most individuals report their income and claim deductions and credits on Form 1040, the main federal income tax form. If you use tax software, it fills out Form 1040 for you in the background, so you rarely have to touch the form itself.

Think about a typical year: maybe you have a full-time paycheck, a little interest from savings, and some extra income from driving for a rideshare app. All of those pieces show up somewhere on your tax return, and understanding the categories makes them much less scary.

Essential Tax Documents You Need Before You File

Employment Documents 💼

Form W-2: Received from employers showing:

• Annual wages.
• Federal and state taxes withheld.
• Social Security and Medicare taxes.
• Retirement plan contributions.

Form 1099: Various types for different income sources:

• 1099-NEC: Non-employee compensation (freelance work).
• 1099-INT: Interest income from banks.
• 1099-DIV: Dividend income from investments.
• 1099-G: Government payments (unemployment, state tax refunds).

Additional Important Documents

Document Type	What It Shows	Who Needs It
1098-E	Student loan interest paid	Recent graduates with student loans
1098-T	Tuition payments	Students or parents claiming education credits
1095-A, B, or C	Health insurance coverage	Everyone (for ACA compliance)
Receipts for deductions	Charitable donations, medical expenses	Those who might itemize

Digital Document Organization Tips

• Create a dedicated tax folder on your computer or cloud storage.
• Scan physical documents for digital backup.
• Use consistent naming conventions (e.g., “2024_W2_CompanyName”).
• Set up automatic downloads from financial institutions.

Action: Create a “2024 Taxes” folder today and move every W-2, 1099, and tax-related email or PDF into it so everything is in one place when you start filing.

Quick Tax Filing Readiness Checklist

Standard Deduction vs. Itemizing

The standard deduction is a fixed amount that reduces your taxable income. Itemizing means listing out specific deductible expenses instead. Most beginners use the standard deduction, but it’s worth knowing your options.

2024 Standard Deduction Amounts

• Single: $14,600.
• Married Filing Jointly: $29,200.
• Married Filing Separately: $14,600.
• Head of Household: $21,900.

When to Consider Itemizing

Itemize if your total deductions exceed the standard deduction. Common itemized deductions include:

State and Local Taxes (SALT): Up to $10,000 limit

• State income taxes.
• Local property taxes.
• Sales taxes (if higher than income taxes).

Mortgage Interest: On loans up to $750,000.

If you own a home and think you might itemize, our detailed mortgage interest tax deduction rules guide walks through what qualifies and how the limits work.

Charitable Contributions: Cash and non-cash donations.

Medical Expenses: Exceeding 7.5% of adjusted gross income.

If you rent, don’t have big medical bills, and your charitable giving is modest, the standard deduction will usually be the simpler and better choice. Homeowners in high-tax states or people with large medical or charitable expenses are more likely to benefit from itemizing.

💡 Pro Tip: Most first-time filers benefit from the standard deduction. Only a relatively small share of taxpayers itemize, and it’s typically those with significant mortgage interest, high state taxes, or substantial charitable giving. The IRS website has a clear explanation of how the standard deduction works if you want to dive into the details.

Choosing the Best Way to File Your Taxes

Free Filing Options 🆓

IRS Free File: Available for taxpayers with adjusted gross income under $79,000. You can use partner software providers to prepare and e-file a federal return at no cost, and some options also include free state filing. For a deeper walkthrough of your choices, check out our guide on how to file your taxes for free and review the information on IRS Free File on IRS.gov.

Free File Fillable Forms: For any income level. These are electronic versions of paper forms, so they require more tax knowledge but still allow free federal filing.

DIY Tax Software 💻

Popular Options include TurboTax, H&R Block, TaxAct, and FreeTaxUSA.

Benefits:

• Step-by-step guidance.
• Error checking.
• Electronic filing.
• Refund tracking.

Typical Costs: $0–$200 depending on complexity.

If your situation is “just a W-2 and the standard deduction,” starting with free or low-cost software is usually enough. As your finances get more complex—say you add rental property, self-employment, or major investments—you can always upgrade to a paid version or a tax professional later.

Professional Tax Preparers 👨‍💼

Consider a professional if you have:

• Multiple income sources.
• Significant life changes (marriage, divorce, new baby).
• Business income.
• Complex investments.
• Previous tax problems.

Step-by-Step Filing Process for First-Time Tax Filers

If you’ve been wondering how to file taxes from start to finish, this section walks you through each step in order.

Step 1: Choose Your Software or Preparer

Research options based on your income level and complexity. Most beginners can successfully use free or low-cost software, especially if they only have W-2 income.

Step 2: Create Your IRS Online Account

To view transcripts, balances, and some notices, it’s helpful to have an IRS online account.

1. Visit irs.gov.
2. Click “Sign In to Your Online Account.”
3. Verify your identity with:
   • Social Security number.
   • Filing status.
   • Mailing address.
   • Prior year tax return information.

Step 3: Enter Personal Information

• Full legal name (as it appears on your Social Security card).
• Social Security number.
• Date of birth.
• Current address.
• Bank account information (for direct deposit).

Step 4: Input Income Information

From W-2 Forms:

• Box 1: Wages, tips, other compensation.
• Box 2: Federal income tax withheld.
• Boxes 3 & 5: Social Security and Medicare wages.

From 1099 Forms:

• Enter each form separately.
• Double-check amounts for accuracy.

Step 5: Claim Deductions and Credits

Common Credits for Beginners:

• Earned Income Tax Credit (EITC): For lower-income workers; even a few thousand dollars of income can qualify you for a valuable refund if you meet the rules.
• American Opportunity Tax Credit: For college students.
• Child Tax Credit: For families with children under 17.

Step 6: Review and Submit

Final Checklist ✅:

• Verify all names and Social Security numbers.
• Confirm bank account information for direct deposit.
• Review all income and deduction amounts.
• Check math calculations (your software usually handles this).
• Ensure you’ve signed and submitted the return.

Important Deadlines and Extensions

Key 2025 Tax Dates 📅

• April 15, 2025: Federal tax return deadline.
• October 15, 2025: Extended deadline (if extension filed).

If it’s early April and you realize you’re still waiting on a corrected form or haven’t had time to check everything, filing an extension can give you breathing room while still keeping you on the IRS’s good side—as long as you pay any expected balance by April 15. These dates come from the IRS calendar for the 2024 tax year, so always confirm the current year’s deadlines on IRS.gov.

State Tax Deadlines

Most states follow the federal deadline, but some exceptions include:

• Hawaii: Around April 20–21.
• Iowa: Around April 30.
• Louisiana: Around May 15.

State deadlines can shift from year to year, so always confirm the exact date on your state’s department of revenue or tax authority website.

How to Request an Extension

Form 4868: Automatic Extension of Time to File.

• Extends filing deadline to October 15, 2025.
• Does NOT extend payment deadline.
• You must estimate and pay any taxes owed by April 15.

⚠️ Important: An extension to file is not an extension to pay. If you owe taxes, pay by April 15 to avoid penalties and interest, and review our tips on avoiding the IRS underpayment penalty if your income tends to fluctuate.

Refunds and Payments

Direct Deposit vs. Paper Check 💰

Direct Deposit Benefits:

• Faster processing (often 8–21 days vs. 6–8 weeks).
• More secure.
• No risk of lost mail.
• Can split refund between accounts.

If you’re counting on your refund to cover upcoming bills or build an emergency fund, using direct deposit and double-checking your routing and account numbers can help the money land where it needs to go as quickly as possible.

Refund Tracking

The IRS “Where’s My Refund?” tool on irs.gov lets you track your refund status. It’s available shortly after you e-file, updates once a day, and asks for your Social Security number, filing status, and exact refund amount.

If You Owe Money

Payment Options:

• Direct debit from a bank account.
• Credit or debit card (fees apply).
• Installment agreement for amounts you can’t pay immediately.
• Offer in compromise for certain financial hardship situations.

If you’re tempted to tap retirement savings to cover a tax bill, read up on 401k withdrawals without penalty first so you don’t trigger extra taxes or fees by accident.

Action: Before you file, decide how you’ll handle a possible balance due—set a simple payment plan in your budget or look into IRS payment options so there are no surprises.

Record Keeping for Tax Season

What to Keep and for How Long 📁

Keep for 3 Years:

• Tax returns.
• W-2s and 1099s.
• Receipts for deductions.
• Bank statements.

Keep for 7 Years:

• Records supporting bad debt deductions.
• Worthless securities claims.

Keep Indefinitely:

• Records for non-deductible IRA contributions.
• Home purchase and improvement records.
• Investment purchase records.

Organization Tips

Physical Documents:

• Use labeled file folders by tax year.
• Store in a fireproof safe or safety deposit box.
• Make copies of important documents.

Digital Storage:

• Scan documents to PDF.
• Use cloud storage with backup.
• Organize by year and category.
• Password-protect sensitive files.

Future you will be grateful when a mortgage application, financial aid form, or new job asks for last year’s return and you can pull it up in seconds instead of digging through old shoeboxes.

Action: Set a calendar reminder to archive your tax documents into a clearly labeled folder as soon as you finish filing each year.

Common Mistakes to Avoid

Math and Data Entry Errors 🔢

It’s easy to rush through the last few screens late at night and mistype a Social Security number or bank account detail. Slow down and let your software’s built-in review run, then fix anything it flags before you hit submit.

• Take a final slow pass over your return, reading each section out loud if needed.

Missing Income Sources

Don’t forget:

• Side gig income (Uber, DoorDash, freelancing).
• Interest from savings accounts.
• Unemployment compensation.
• Cryptocurrency transactions.
• Cash tips.

Filing Status Mistakes

• Choose the most beneficial status you’re eligible for.
• Consider your marriage date for filing status determination.
• Understand head of household requirements.

Many first-time filers don’t realize they’ve missed a small 1099 or chosen the less beneficial filing status until a letter arrives from the IRS. Slowing down now and double-checking these details is almost always easier than fixing a return later.

Conclusion

Filing taxes as a beginner doesn’t have to be overwhelming. By following this beginner’s guide to filing taxes, you now have the basics you need to navigate tax season with much more confidence. Start early, stay organized, and use tools like IRS Free File or reputable software to simplify the process. Each year will get easier as you learn how the pieces fit together.

This beginner’s guide to filing taxes is for general education only and does not provide personalized tax, legal, or financial advice. Individual situations and results will always vary, especially if you have business income, investments, or other complexities. For guidance tailored to your circumstances, consult a qualified tax professional or other trusted advisor.