Filing taxes for the first time is intimidating — but once you do it, you realize it is far more manageable than it seemed from the outside. The IRS is not out to get you, most first-time filers are in simple situations that take under an hour, and there are free tools that walk you through every step. Here is everything you need to know.
Do you even need to file?
Not everyone is required to file a federal tax return. For 2024, you generally need to file if your gross income exceeds these thresholds:
- Single, under 65: $14,600
- Married filing jointly, both under 65: $29,200
- Head of household, under 65: $21,900
Even if your income is below these amounts, you may want to file anyway. If your employer withheld federal income tax from your paychecks, you might be entitled to a refund — but only if you file. Same applies if you qualify for refundable tax credits like the Earned Income Tax Credit.
What documents do you need?
Gather these before you start filing:
Income documents
- W-2: If you were employed, your employer sends this by January 31. It shows your wages and how much was withheld for federal and state taxes.
- 1099-NEC: If you did freelance or contract work and were paid $600 or more by a single client, they send this. Independent contractors receive 1099s, not W-2s.
- 1099-INT: For interest income (like from a savings account). Usually sent if you earned more than $10 in interest.
- 1099-DIV: For dividend income from investments.
- 1099-B: For proceeds from selling investments through a brokerage.
- SSA-1099: If you received Social Security benefits.
Personal information
- Your Social Security number (and your spouse’s if filing jointly)
- Social Security numbers for any dependents (children)
- Bank account number and routing number (for direct deposit of your refund)
- Last year’s tax return, if applicable (you may need your Adjusted Gross Income from last year’s return for identity verification)
Deduction documents (if itemizing)
Most first-time filers take the standard deduction, which requires no additional documentation. If you think you might itemize (usually only worthwhile if your itemized deductions exceed $14,600 for single filers), gather:
- Mortgage interest statement (Form 1098)
- Property tax records
- Charitable donation receipts
- Medical expense records
- Student loan interest statement (Form 1098-E)
Standard deduction vs. itemizing — which should you take?
The standard deduction reduces your taxable income by a set amount without requiring you to track individual deductions. For 2024, it is $14,600 for single filers and $29,200 for married filing jointly.
Itemizing means adding up all your eligible deductions (mortgage interest, state and local taxes up to $10,000, charitable donations, medical expenses above 7.5% of income) and using that total instead, but only if it exceeds the standard deduction.
For most first-time filers — especially younger people who are renting, have no mortgage, and limited deductions — the standard deduction is larger and the obvious choice. Take it unless you have a strong reason to believe your itemized deductions are significantly higher.
How to actually file your taxes
Option 1 — IRS Free File (completely free)
If your adjusted gross income is $79,000 or less (2024), you qualify for IRS Free File — a program where major tax software companies offer their full products at no cost. Visit IRS.gov/freefile to find a participating provider that fits your situation.
This is the best option for most first-time filers. You get the same software as people who pay for it, completely free.
Option 2 — Free tax software (for simple returns)
TurboTax, H&R Block, TaxAct, and FreeTaxUSA all offer free versions for simple returns (W-2 income, standard deduction, no complex investments or self-employment). The free tier usually works for most first-time filers, but watch out for upsells when your situation is more complex.
FreeTaxUSA is often the best option for people with slightly more complex situations (like freelance income) who still want a free or very low-cost option.
Option 3 — VITA (Volunteer Income Tax Assistance)
If you earn $67,000 or less, you can get your taxes prepared for free by IRS-certified volunteers at VITA sites. This is a great option if you prefer in-person help or have a complicated situation. Find sites at IRS.gov/VITA.
Option 4 — Paid tax professional
If you have a complex situation — significant freelance income, rental property, major investments, business ownership — a CPA or enrolled agent may be worth the cost ($150 to $500 for a typical individual return). For a simple first-time filer situation, you almost certainly do not need one.
Step-by-step: how to file using tax software
Here is what the process looks like when you use free tax software:
- Create an account with your chosen software
- Enter your personal information: Name, address, SSN, filing status
- Select your filing status: Single, married filing jointly, married filing separately, head of household, or qualifying surviving spouse. Choose whichever describes your actual situation.
- Enter your income: Input the numbers from your W-2s and any 1099s. Good software will often let you import these directly from the IRS or your employer.
- Choose your deductions: The software will compare the standard deduction to your itemized deductions and recommend which is higher. For most first-time filers, this automatically defaults to standard.
- Claim any credits: The software will prompt you about education credits, child tax credits, Earned Income Credit, and others you may qualify for.
- Review your return: The software shows your refund or amount owed before you file. Review it for obvious errors.
- File electronically: E-filing is faster, more accurate, and gets you your refund sooner. Federal e-filing is free. Some states charge a small fee for state e-filing.
- Set up direct deposit: Enter your bank account information for your refund to arrive within 21 days (often faster).
Important tax dates to know
- January 31: Deadline for employers to send W-2s and most 1099s
- April 15: Standard federal tax filing deadline (and payment deadline if you owe)
- October 15: Extended deadline if you file for an extension by April 15. Note: an extension gives you more time to file, not more time to pay — if you owe, interest accrues from April 15.
Common first-time filing mistakes to avoid
Not reporting all income
Any money you earned needs to be reported — including freelance work, selling items online (if for profit), and gig economy income. The IRS receives copies of all 1099s sent to you. Unreported income often leads to a notice and additional tax owed plus interest.
Using the wrong filing status
Your filing status significantly affects your tax rate and deductions. If you are single with no dependents, you file as Single. If you have a child you support, you may qualify as Head of Household, which has more favorable rates. Getting this wrong can cost you money.
Missing credits and deductions
The American Opportunity Tax Credit can be worth up to $2,500 for eligible college students. The Earned Income Tax Credit can be worth several thousand dollars for lower-income filers. Good tax software will flag these for you — but you need to answer the questions honestly and completely.
Not keeping a copy of your return
Save a PDF of your completed return every year. You will need your prior-year Adjusted Gross Income (AGI) for identity verification when filing next year. You may also need past returns for loan applications, financial aid, or if the IRS ever has questions.
Waiting until the last minute
There is no advantage to waiting until April 14 to file. If you are getting a refund, filing early means getting your money earlier. If you owe, you do not have to pay until April 15 even if you file in February — but filing early eliminates the last-minute rush and potential errors from hurrying.
What if you owe money and cannot pay?
File your return anyway, on time. The penalty for failure to file is 5 times higher per month than the penalty for failure to pay. Even if you cannot pay the full amount, file on time and pay whatever you can.
If you cannot pay in full, the IRS offers payment plans (installment agreements) that you can set up online at IRS.gov. Interest and a small failure-to-pay penalty continue to accrue, but it beats the consequences of ignoring the situation.
Frequently asked questions
Can my parents still claim me as a dependent if I file my own taxes?
This is a common source of confusion. If you are under 19 (or under 24 and a full-time student) and your parents provide more than half your financial support, they may be able to claim you as a dependent. You can still file your own return — you just cannot claim your own personal exemption if someone else is claiming you. The software will walk you through this.
Do I have to report income from freelance work or side hustles?
Yes. Self-employment income — including gig work, selling services, and most side hustle income — is taxable even if you do not receive a 1099 for it. If you earned more than $400 from self-employment in a year, you must report it and pay self-employment tax (which covers Social Security and Medicare). Good tax software will calculate this automatically when you report the income.
What if I make a mistake on my return?
File an amended return using Form 1040-X. You can do this electronically through most tax software. Honest mistakes are common and the IRS is generally straightforward to work with on corrections. The key is addressing it rather than hoping it goes unnoticed.
Filing taxes the first time always feels more daunting than it actually is. Once you have done it once with simple software, you will wonder what you were worried about. The real risk is not filing — that leads to penalties, interest, and the IRS coming to you rather than the other way around. File on time, be honest, take the standard deduction, and collect your refund.