Filing taxes for the first time can feel overwhelming, but it doesn’t have to be. Whether you’re a recent graduate, a new employee, or just filing for the first time, understanding the basics can save you money and stress. Here’s a straightforward guide to help you navigate tax season with confidence.

1. Determine If You Need to File

Not everyone is required to file a tax return. The IRS sets income thresholds based on your filing status (single, married, head of household, etc.). For 2023 (taxes filed in 2024), the general rules are:

  • Single filers under 65: File if you earned at least $13,850.
  • Dependent status: If someone else can claim you as a dependent, different rules apply (e.g., earning over $1,250 in unearned income).

Even if you don’t meet the threshold, filing may be worthwhile if you had taxes withheld (you could get a refund) or qualify for tax credits.

2. Gather the Right Documents

Before filing, collect all necessary paperwork, including:

  • W-2 (from employers)
  • 1099 forms (for freelance, gig work, or interest income)
  • 1098-T (for education expenses, if applicable)
  • Receipts for deductions (charitable donations, medical expenses, etc.)
  • Bank account info (for direct deposit refunds)

3. Choose the Best Filing Option

First-time filers have several ways to submit taxes:

  • Free File via IRS.gov – If your income is below $79,000, you can use free tax software through the IRS.
  • Tax software (TurboTax, H&R Block, etc.) – User-friendly but may charge fees for complex returns.
  • Certified Public Accountant (CPA) – Helpful if you have multiple income sources, investments, or self-employment income.
  • Paper filing – The old-school method, but it delays refunds and increases errors.

4. Understand Deductions and Credits

Tax deductions reduce taxable income, while credits directly lower your tax bill (or increase your refund). Key ones for first-time filers:

Common Deductions:

  • Student loan interest (up to $2,500)
  • IRA contributions (if eligible)
  • Educator expenses (for teachers)

Valuable Credits:

  • Earned Income Tax Credit (EITC) – For low-to-moderate earners (up to $7,430 refund).
  • American Opportunity Credit (AOTC) – Up to $2,500 for college expenses.
  • Child Tax Credit – If you have dependents.

5. Don’t Overlook State Taxes

Federal taxes aren’t the only concern—most states also require filings. Some states have no income tax (e.g., Texas, Florida), while others have their own forms and credits. Check your state’s tax agency website for details.

6. Avoid Common Mistakes

First-time filers often make these errors:

  • Misspelling names or wrong Social Security numbers – Double-check personal info.
  • Incorrect bank details – A typo can delay your refund.
  • Filing late – The deadline is usually April 15 (or the next business day if it falls on a weekend/holiday).
  • Not reporting all income – Even side gigs (DoorDash, freelance work) must be reported.

7. File Electronically for Faster Refunds

E-filing is the quickest, safest way to submit taxes. The IRS processes e-filed returns within 21 days, while paper returns take 6–8 weeks. Opt for direct deposit to get your refund even faster.

8. Know What to Do If You Can’t Pay

If you owe taxes but can’t pay in full:

  • File on time anyway – Avoid the failure-to-file penalty (5% per month).
  • Set up a payment plan – The IRS offers short-term (180 days) or long-term installment agreements.
  • Request an extension – Gives you until October 15 to file (but you still must pay estimated taxes by April).

9. Keep Records for at Least 3 Years

The IRS can audit returns up to three years after filing (longer for fraud). Save:

  • Copies of tax returns
  • W-2s, 1099s, and receipts
  • Proof of deductions/credits

10. Plan Ahead for Next Year

To make next year’s taxes easier:

  • Adjust withholding (use the IRS Tax Withholding Estimator).
  • Save for retirement (IRA/401(k) contributions lower taxable income).
  • Track deductible expenses (charity, medical, work-related costs).

Final Thoughts

Filing taxes for the first time doesn’t have to be stressful. By staying organized, taking advantage of deductions and credits, and filing electronically, you can maximize your refund (or minimize what you owe). If you’re unsure, seek help from IRS Free File options or a tax professional.