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Filing your federal income tax return for the first time can feel intimidating. It’s common to hear other taxpayers complain about the tax process, so it’s normal to feel a bit anxious about it.
But don’t worry! Filing taxes for the first time isn’t as complicated as it may seem. Most first-time tax filers have relatively straightforward finances, which means you likely only need to learn a few basic tax filing concepts to get started.
Tips for first-time tax filers
To assist you, we’ve compiled six useful tips for first-time tax filers to help you successfully navigate your first tax season. Here are some pointers to keep in mind before and as you file your federal tax return this year.
1. Start collecting tax information early.
One of the biggest frustrations when filing your taxes is locating all the necessary tax documents and expense receipts you receive throughout the year. When you suddenly can’t remember where you put your student loan interest documents or the receipt for your medical expenses from last summer, preparing your taxes can quickly become a stressful task.
Taking a little extra time to plan ahead can make your life much easier. You don’t need an elaborate filing system to track your tax information — a simple file or box will suffice. The key is to ensure everything is kept in one place where you can easily find it later. Avoid placing any unrelated documents in this file or box to minimize sorting later on.
You can start by saving receipts for expenses related to tax deductions and tax credits in a secure location throughout the year. If you are self-employed, be sure to keep receipts for all your business expenses, both large and small. Business expenses can reduce your self-employment tax as well as your income tax, so it’s essential not to overlook any of them! Be mindful not to miss items such as printer ink, parking fees, tolls related to your business, and other often-overlooked expenses. Consider keeping a notebook or tracking your business mileage electronically.
As your tax forms start arriving in January, place them in your tax file or box immediately. Try not to let them land on your countertop or any other area where they might get misplaced.
2. Organize your tax documents.
Organizing your tax information can be as simple as putting your Form W-2s in one pile, your 1099 forms and other income in the next pile, and possible deductible expenses in a third pile.
If you own a small business or have self-employment income, it’s a good idea to create a list or spreadsheet to track your business income and expenses. Additionally, remember to gather information for any potential tax credits, such as the Child Tax Credit or Earned Income Tax Credit.
To help you stay organized, consider using our handy tax preparation checklist. This resource ensures you have all the necessary tax documents before you begin filing.
Once your information is organized, the filing process will be much easier. If you choose TaxAct® as your tax preparation solution, you can easily prepare and file your federal and state returns by simply answering a few questions along the way.
3. Determine your tax filing status.
The Internal Revenue Service (IRS) uses your tax filing status to determine the requirements for filing your tax return. Your filing status also affects the standard deduction amount you qualify for and your eligibility for certain tax credits.
The different filing statuses are:
- Single: If you are unmarried and do not qualify for another filing status (for example, you have no children or dependent relatives), you should file as single.
- Married Filing Jointly: If you are married and both you and your spouse agree to file a joint return, you can choose the married filing jointly status. Typically, couples pay less tax when filing jointly.
- Married Filing Separately: If you are married but prefer to file a separate return from your spouse, you can opt for married filing separately. This status may be advantageous if you do not want to assume your spouse’s tax liability. Some couples choose to file separately to maintain individual control over their finances.
- Head of Household: You can file as head of household if you are considered unmarried as of December 31 of the tax year, or if your spouse did not live with you during the last six months of the year. Additionally, you must have paid more than half of the household expenses and had a qualifying person (such as a dependent) living with you for more than half of the year. This filing status typically offers greater tax savings compared to filing as single.
4. Know if you are someone’s dependent.
One of the most important things to know before filing your tax return for the first time is whether you are classified as a dependent on someone else’s tax return.
Ask yourself: Did your parents or another person pay more than half of your expenses in the past year? If the answer is yes, the IRS generally considers you to be their dependent for tax purposes. This means your parents can claim a tax credit or other tax benefits for having you as a dependent. In this case, when you e-file with TaxAct, be sure to indicate that you can be claimed as a dependent on someone else’s return.
If you fail to indicate that you can be claimed as a dependent by someone else, and they do claim you on their taxes, the IRS may reject your return. Therefore, it’s important to talk to your parents or another relative to see if they plan to claim you as a dependent.
You can view the current rules about who can be claimed as a dependent on someone else’s tax return on the official IRS website.
5. Understand your adjusted gross income.
Your adjusted gross income (AGI) is a key figure when filing your taxes. It’s essentially your total income for the year — including wages, tips, business income, and other earnings — minus specific adjustments like student loan interest, retirement contributions, and certain health expenses. Think of it as your taxable income before claiming any deductions or credits.
Understanding your AGI is important because it directly impacts your eligibility for various tax deductions and credits, as well as your overall tax liability. Many calculations in the tax filing process, such as determining your standard deduction or qualifying for credits like the Earned Income Tax Credit, are based on your AGI. Knowing how to calculate it can help you make informed decisions about your finances and ensure you’re taking advantage of every benefit available to you.
Learn more about AGI and how it’s calculated in our detailed AGI guide.
6. Look over your tax return before submitting.
DIY e-filing makes tax preparation much easier than it was back in the day. Gone are the days of having to fill out IRS forms by hand. Now, you can simply input your financial data into online tax software (like one of TaxAct’s digital or download solutions) and follow the steps to file your own taxes quickly and efficiently.
However, that doesn’t mean you should just plug in the numbers and file — be sure to read your entire return! If you don’t understand something, check out our help topics to learn more.
Reading your return not only helps you feel confident in its accuracy but also helps you understand how taxes work. As you file with us, TaxAct customers can also use our Refund Snapshot to get a clear picture of how specific tax deductions and credits can affect your tax refund or tax bill (amount of taxes owed).
Building your knowledge about taxes and your financial situation can help you plan better for years to come.
7. Give yourself enough time to file.
Your first tax return shouldn’t take too much time, but you don’t want to rush it either. Starting early in the year gives you a chance to work on your return without the stress of a close tax deadline. It also gives you more time to budget for an unexpected tax bill, if you end up with one.
The IRS generally starts accepting returns before the end of January, and you have until the due date on April 15, 2025, to file your 2024 federal tax return. However, you can file with TaxAct as early as Jan. 2, 2025, and we will submit your return to the IRS on your behalf when the agency officially begins accepting them.
Filing deadlines for state tax returns vary by state. Be sure to mark your calendar to give yourself enough time to meet the deadlines!
If you find yourself trying to beat the clock, you can file a tax extension to give yourself more time. It’s far better to get a filing extension than to hurry through your return and possibly miss tax deductions or credits that could have left you with more money in your bank account. TaxAct can help you request an automatic extension when you file with us.
Note: If you end up with a tax bill you can’t pay all at once, you can set up a payment plan with the IRS (though the agency may charge you interest and fees).
The bottom line
Filing your first tax return doesn’t have to be stressful. With a little preparation and the right tools (like TaxAct!), you can navigate tax season with ease and confidence. By following these tips, you’ll not only simplify the process but also gain a better understanding of your financial situation and how taxes work. Ready to get started? You don’t have to be a tax professional to use our tax preparation software — TaxAct is here to make tax filing quick, easy, and affordable so you can maximize your tax savings. Start free today or sign in to your TaxAct Account and take control of your taxes.