How to File Taxes for the First Time 2025: A Simple Guide for Beginners

How to File Taxes for the First Time 2025: A Simple Guide for Beginners

Filing taxes for the first time can feel overwhelming, but with the right information and preparation, it can be straightforward and even rewarding. The tax season for the 2024 income year (filed in 2025) has clear steps you can follow to file accurately and maximise your refund or minimise your liability.

Step 1: Determine If You Need to File

For 2025, whether you need to file a federal tax return depends on your income tax filing status and age. Most single filers under 65 should file if their gross income exceeds around $14,600. However, filing even if you don’t meet the filing threshold might benefit you, especially if you qualify for refundable tax credits.

Step 2: Gather Your Tax Documents

Collect all necessary paperwork, including:

• Form W-2 from your employer(s), showing your income and withheld taxes
• Form 1099 for any freelance or contract work income
• Details of any other income sources (investments, rental property, etc.)
• Records of deductible expenses like tuition payments, mortgage interest, and charitable donations
• Social Security Number or ITIN for you, your spouse, and dependents

Step 3: Choose Your Filing Status

Your filing status affects your tax bracket and deductions. Common options include:

• Single
• Married Filing Jointly
• Married Filing Separately
• Head of Household
• Qualifying Widow(er) with Dependent Child
• Pick the status that best fits your situation for optimal tax benefit.

Step 4: Decide How to File

You can file your taxes using several methods:

• IRS Free File: Available for those earning $73,000 or less, it offers free software to file online.
• Tax Software: Popular options like TurboTax or H&R Block guide you through the process for a fee.
• Tax Professional: Especially helpful if your tax situation is complex or if you want expert advice.
• Paper Filing: You can still mail paper forms, but e-filing is faster and more efficient.

Step 5: Complete and Review Your Tax Return

Fill in your income, deductions, and credits accurately. Double-check your Social Security numbers and bank account info if you’re expecting a refund via direct deposit. Errors can delay refunds or trigger audits.

Step 6: File and E-Verify

Submit your return electronically for faster processing. Then, e-verify your return using methods like:

• IRS e-Verify codes sent to your phone or email
• Bank account information
• Use of your prior year’s adjusted gross income (AGI)
• If you cannot e-verify, send your signed paper return to the IRS within 90 days.

Step 7: Keep Copies and Track Your Refund

Save a copy of your filed return and all supporting documents. You can check your refund status on the IRS “Where’s My Refund?” tool about 24 hours after e-filing.

Filing taxes for the first time in 2025 doesn’t have to be complicated. By following these steps and using available resources, anyone can file confidently and legally. For personalised help in Milpitas, CA, Venkata Pathi, Financial Advisor, offers expert tax preparation and planning services designed to maximise your benefits and minimise stress.