Filing Guide for First-Time Taxpayers

Key Takeaways: 

• Most first-time taxpayers benefit from filing, even if not required; filing can unlock refunds and refundable credits like the Earned Income Tax Credit (EITC) or education credits. 

• Know your filing threshold: For 2025, income limits range from $15,750 (single under 65) to $34,700 (married filing jointly, both 65+); these determine if you must file. 

• Gather all income forms early, W-2s, 1099s, and education or loan forms, and stay organized with a labeled tax folder to avoid missing documents. 

• File electronically for speed and accuracy. Use IRS Free File, tax software, or free assistance programs like VITA and TCE for help. 

• Claim credits and deductions to reduce taxes; student loan interest, education credits, child tax credit, and Saver’s Credit are common for first-time filers. 

• Avoid first-timer mistakes such as missing forms, filing late, or choosing the wrong status, double-check details and file before the April 15 deadline. 

Filing your taxes for the first time can feel overwhelming. Between gathering documents, understanding forms, and figuring out which credits or deductions you qualify for, it’s easy to feel lost. The good news is that once you learn the process, it becomes much easier every year. 

This comprehensive guide to tax filing tips for first-time taxpayers breaks down everything you need to know, step-by-step. You’ll learn how to determine if you need to file, what documents to gather, which forms to use, and how to avoid costly mistakes that first-timers often make. 

Understanding the Basics of Filing Taxes for the First Time 

Before diving into the filing process, it helps to understand what taxes are and why filing matters. 

Why You Have to File a Tax Return 

Every year, the IRS requires most workers to report their income and calculate how much tax they owe. If they’ve overpaid, they are due a refund. Your employer or clients report how much they paid you, and your tax return reconciles those amounts with what’s been withheld. 

Even if you earned a small amount, you may still benefit from filing. Many first-time filers qualify for refunds, thanks to refundable credits like the Earned Income Tax Credit (EITC) or education credits. Let’s look at some examples. 

• A college student with part-time income might get a refund even if no taxes were withheld. 

• A recent graduate could qualify for education credits that reduce taxes owed. 

Step 1: Determine If You Need to File a Tax Return 

Not everyone is legally required to file a tax return, but most people benefit from doing so. 

Filing Thresholds for 2025 (Filed in 2026) 

Your filing requirement depends on your income, age, and filing status. Here are the general IRS thresholds for 2025 income. 

If your income exceeds these amounts, you must file. 

However, even if you’re under the threshold, you may want to file to: 

• Get a refund for withheld taxes 

• Report self-employment income (required if you earned $400+) 

Step 2: Gather All the Documents You’ll Need 

Before you start filing, you’ll need to collect forms and records that show your income, tax withheld, and any expenses or credits. 

Essential Income Forms 

Depending on how you earned money, you might receive: 

• Form W-2 – from your employer, showing wages and taxes withheld 

• Form 1099-NEC – for freelance or contract work 

• Form 1099-K – if you earned money through PayPal, Venmo, or online platforms 

• Form 1099-INT / 1099-DIV – for interest or dividends from bank accounts or investments 

• Form 1099-G – for unemployment benefits or state tax refunds 

Other Important Records 

You’ll also need: 

• Student loan interest statement (Form 1098-E) 

• Tuition payment statement (Form 1098-T) 

• Mortgage interest or property tax forms (Form 1098) 

• Receipts for deductible expenses (charity, education, medical) 

• Proof of health insurance coverage (Form 1095-A, B, or C) 

• Last year’s tax return (if applicable) 

Pro Tip: Create a folder labeled “2025 Taxes” to keep all documents organized. This will make future years much easier. 

Step 3: Choose How You’ll File Your Taxes 

Once you have your paperwork, it’s time to choose a filing method. 

Option 1: File Online Using Tax Software 

Tax software like TurboTax, H&R Block, or Cash App Taxes walks you through questions about your income and deductions. These tools are ideal for first-time filers with simple tax situations (like W-2 jobs or student income). 

• Many offer free filing for basic returns. 

• They help you e-file, which is faster and more accurate than mailing. 

• They calculate your refund automatically. 

Option 2: Use IRS Free File or Volunteer Programs 

If you made less than $84,000 in 2025, you can use IRS Free File to prepare and e-file for free. 
Another great option: VITA (Volunteer Income Tax Assistance) or TCE (Tax Counseling for the Elderly). These programs offer free in-person help to qualifying taxpayers; students, low-income individuals, or seniors. 

Option 3: Hire a Tax Professional 

If you’re self-employed, own a small business, have multiple income streams, or bought/sold investments, consider hiring a CPA or Enrolled Agent. Professional help ensures accuracy and may save you more than it costs; especially if you qualify for complex deductions. 

Step 4: Choose the Correct Filing Status 

Your filing status determines your tax rate and standard deduction. Choosing correctly can save you money. 

Common Filing Statuses Explained 

• Single: Unmarried or legally separated. 

• Married Filing Jointly: Married couples combining income and deductions. 

• Married Filing Separately: Rarely beneficial unless one spouse has significant deductions or debt. 

• Qualifying Widow(er): For those whose spouse passed away recently and are supporting dependents. 

Let’s look at an example. If you’re a single parent with one child and provide more than half the household expenses, you may qualify as Head of Household; which offers a larger standard deduction and lower tax rate than “Single.” 

Step 5: Know What Tax Credits and Deductions You Can Claim 

This is where you can reduce your taxable income or increase your refund. 

Common Tax Credits for First-Time Filers 

Credits directly reduce the amount of tax you owe: 

• Earned Income Tax Credit (EITC): For low- to moderate-income earners. 

• Child Tax Credit: Worth up to $2,200 per qualifying child in 2025. 

• American Opportunity Credit (for undergraduate students) 

• Lifetime Learning Credit (for ongoing education) 

• Saver’s Credit: If you contributed to a retirement plan like a 401(k) or IRA. 

Popular Deductions for New Filers 

Deductions reduce your taxable income: 

• Student loan interest deduction (up to $2,500) 

• Charitable contributions (if you itemize) 

• Medical expenses (if over 7.5% of your income) 

• Self-employment expenses (home office, supplies, mileage) 

For example, if you earned $20,000 and qualify for a $1,000 tax credit, that’s $1,000 less you owe, not just a reduction of taxable income. 

Step 6: File and Submit Your Return 

Once your information is complete, it’s time to file. 

Filing Deadlines 

The tax filing deadline for 2026 is April 15, 2026. If you need more time, you can file Form 4868 for a 6-month extension; but note that the extension only gives you more time to file, not more time to pay. 

E-Filing vs. Paper Filing 

• E-filing: Fast, secure, and gives instant confirmation. Refunds usually arrive in 21 days or less. 

• Paper filing: Slower and more error-prone; refunds can take up to 8 weeks during normal circumstances. 

Step 7: Track Your Refund and Keep Your Records 

After filing, you can track your refund using the IRS’s “Where’s My Refund?” tool. You’ll need your Social Security number, filing status, and refund amount. 

Keep a copy of your return and all supporting documents for at least three years in case of an audit or need for future reference. 

Step 8: Plan Ahead for Next Year’s Taxes 

Once your first return is complete, use what you’ve learned to make next year smoother. 

Adjust Your Withholding 

If you owed taxes or received a large refund, update your Form W-4 with your employer to better match your tax situation. 

Track Expenses Year-Round 

If you’re self-employed or a freelancer, use an app or spreadsheet to track mileage, expenses, and payments throughout the year. 

Consider Estimated Tax Payments 

If you expect to owe more than $1,000 in taxes next year, you may need to make quarterly estimated payments to avoid penalties. 

Special Situations for First-Time Filers 

Some taxpayers face unique circumstances that affect how they file. 

Students and Part-Time Workers 

• Report income from both jobs and scholarships if required. 

• You may qualify for the American Opportunity Tax Credit. 

• File even if your parents claim you as a dependent; especially if taxes were withheld. 

Freelancers or Gig Workers 

• You’ll likely receive Form 1099-NEC or 1099-K. 

• You must pay self-employment tax (Social Security + Medicare). 

• Keep receipts for expenses like internet, supplies, and travel. 

First Job or Career Change 

• File even if you only worked part of the year. 

• Double-check that each employer issued a W-2 and reported wages accurately. 

Common Mistakes First-Time Taxpayers Make (and How to Avoid Them) 

1. Forgetting a Form – Wait until mid-February to ensure all W-2s and 1099s arrive. 

2. Typos on SSNs or Bank Info – Double-check before e-filing. 

3. Missing Out on Credits – Always answer all software questions; many credits are hidden. 

4. Not Filing at All – Even if you think you owe nothing, you could miss a refund. 

5. Filing Late or Paying Late – This triggers penalties and interest. 

6. Choosing the Wrong Filing Status – This can cost hundreds in missed deductions. 

Filing taxes for the first time doesn’t have to be intimidating. With the right preparation and understanding of your options, you can confidently handle your return and even maximize your refund. 

Frequently Asked Questions 

How should a beginner file a tax return? 
Beginners should file taxes electronically using trusted tax software, IRS Free File, or a professional preparer. E-filing ensures faster refunds, fewer errors, and step-by-step guidance through deductions and credits. 

What are the biggest tax mistakes people make? 
Common mistakes include missing income forms, entering incorrect Social Security numbers, choosing the wrong filing status, or forgetting to sign the return. First-time taxpayers should also avoid waiting until the last minute to file. 

What usually triggers an IRS audit? 
IRS audits are often triggered by mismatched income reports, unusually high deductions, large charitable donations, or unreported freelance or investment income. Staying accurate and organized is the best way to avoid red flags. 

What documents do I need to file taxes for the first time? 
You’ll need your W-2 or 1099 forms, Social Security number, proof of education or childcare expenses, and bank account information for direct deposit. First-time filers should gather these early to prevent delays and filing errors. 

Tax Help for First Time Filers  

Remember, the best tax filing tips for first-time taxpayers start with staying organized, understanding your eligibility for credits, and filing early to avoid last-minute stress. Optima Tax Relief is the nation’s leading tax resolution firm with over a decade of experience helping taxpayers.     

If You Need Tax Help, Contact Us Today for a Free Consultation