What you need to do before you file

A tax return is a form you send to the IRS that reports your income, deductions, and credits for the year. You file it to settle what you owe in federal income tax — either paying what's due or receiving a refund. Most people must file by April 15 of the following year, though that date shifts slightly when it falls on a weekend or holiday.

Before you start, gather the documents that show your income. These include W-2 forms from employers, 1099 forms for self-employment or investment income, mortgage interest statements (Form 1098), and records of charitable donations or medical expenses if you plan to deduct them. If you received unemployment benefits, student loan interest statements, or education credits, collect those documents too.

Decide whether you will itemize deductions or take the standard deduction. The standard deduction is a flat amount that reduces your taxable income — for 2024, it ranges from $14,600 to $23,200 depending on your age and filing status. Itemizing means adding up specific expenses like mortgage interest, state taxes, and charitable gifts. Most people use the standard deduction because it is simpler and larger than their itemized total, but run both numbers if you have significant deductible expenses.

Key Takeaways

  • Gather W-2s, 1099s, and records of deductions or credits before you begin, because the IRS has copies and will catch mismatches.
  • You can file on paper by mailing Form 1040 and schedules to the IRS, or use tax software, or hire a preparer — each route has different costs and complexity.
  • The standard deduction is usually larger than itemizing, but if you own a home or made large charitable gifts, calculate both to see which saves more tax.
  • File as soon as you have all your documents, because refunds take longer the later you file, and the IRS processes returns in the order received.
  • Keep copies of everything you file and all supporting documents for at least three years in case the IRS asks questions.

Filing on your own with tax software

Tax software walks you through questions about your income, deductions, and credits, then calculates your tax and generates the forms you need. The software files electronically, which is faster than mailing and produces an when ready confirmation. Common options include TurboTax, H&R Block, TaxAct, and FreeTaxUSA. Many offer free versions if your income is below a certain threshold — typically $79,000 to $84,000 — though the free version may not include all schedules or credits.

The software asks you to enter information from your documents in plain-language questions rather than asking you to understand tax forms. It catches common errors, flags missing information, and shows you your refund or balance due before you file. If you change your mind about an answer, you can go back and edit it. Most software costs between $0 and $200 depending on the complexity of your return and which version you choose.

After you complete the interview, the software generates your return and lets you review it before filing. You can print it to keep a copy, then submit it electronically. The IRS sends a confirmation within 24 hours. If you owe money, you can pay by debit card, credit card, or bank transfer through the software. If you are due a refund, you choose whether to receive it by check or direct deposit to your bank account.

Filing by mail with paper forms

You can file a paper return by completing Form 1040 and any schedules that explore to your situation, then mailing them to the IRS address for your state. The IRS publishes the address in the Form 1040 instructions each year. Paper filing is slower — the IRS processes returns in the order received, and processing takes several weeks longer than electronic filing. If you are due a refund, it will arrive by check rather than direct deposit, which adds more time.

You must obtain the correct forms and instructions from the IRS website (irs.gov) or by calling 1-800-TAX-FORM. The forms change slightly each year, so use the current year's version. If you itemize deductions, you will also need Schedule A. If you have self-employment income, you need Schedule C and Schedule SE. If you have investment income, you need Schedule D or other investment schedules. Getting the wrong form or an outdated version can delay processing or trigger a notice from the IRS.

Paper returns require you to do the math yourself or use a calculator. Many people find this error-prone and time-consuming. The IRS will catch arithmetic mistakes and send you a corrected bill or refund, but that takes months. Paper filing makes sense only if you have a very straightforward return — one W-2, no deductions beyond the standard deduction, no credits — or if you have no internet access.

Hiring a tax preparer or CPA

A tax preparer or certified public accountant (CPA) interviews you about your income and expenses, completes your return, and files it on your behalf. They charge a fee, usually between $150 and $500 for a straightforward return, and more if your situation is complex — multiple income sources, rental property, business ownership, or significant deductions. Some preparers charge by the hour; others charge a flat fee per return.

A preparer is useful if your return is complicated, if you are unsure whether you may have access to for credits, or if you want someone to explain your options before you file. A CPA can also advise you on tax-efficient strategies for the coming year, such as whether to contribute to a retirement account or time a large sale. A preparer can only file your return; a CPA can do that and also advise you on tax planning.

To find a preparer, ask your accountant, bank, or friends for referrals. The IRS maintains a directory of enrolled agents (federally authorized tax preparers) at irs.gov. Interview at least two preparers and ask what they charge, what documents you need to bring, and when they will have your return ready. Bring all your income documents and records of deductions to your appointment. The preparer will ask you to sign the completed return before filing — you are responsible for the accuracy of what you sign, even if someone else prepared it.

Understanding your refund or balance due

After you file, the IRS compares the tax you paid during the year (through withholding from paychecks or estimated tax payments) to the tax you actually owe based on your return. If you paid more than you owe, you receive a refund. If you paid less, you owe a balance. The IRS sends a notice showing the calculation.

A refund arrives by direct deposit within 21 days of electronic filing, or by check within six to eight weeks of mailing a paper return. You can check the status of your refund on the IRS website using the "Where's My Refund?" tool, which updates once a day. If your refund is delayed beyond the expected timeframe, the IRS may be reviewing your return or requesting more information.

If you owe a balance, you can pay when ready through the IRS website, through your tax software, or by mailing a check. The IRS also offers payment plans if you cannot pay in full. If you do not pay by the important date, the IRS charges interest and penalties, which grow over time. It is better to file on time even if you cannot pay than to file late.

What to do after you file

Keep a copy of your filed return and all supporting documents — W-2s, 1099s, receipts, bank statements, donation records — for at least three years. The IRS can audit a return up to three years after filing, and you will need these documents to support what you reported. If you claimed large deductions or had unusual income, keep records for six years or longer.

If the IRS sends you a notice or letter after you file, open it when ready. Many notices are routine — the IRS is asking for clarification or notifying you of a calculation. Some notices request additional documents or propose a change to your return. You have a important date to respond, usually 30 days. If you disagree with the IRS's position, you can request an appeal. Do not ignore a notice; the IRS will assess additional tax and penalties if you do not respond.

If you received a refund, consider whether you want to adjust your withholding for next year. A large refund means you overpaid during the year — money the government held interest-free. You can file a new Form W-4 with your employer to reduce withholding, so you take home more pay each month. Conversely, if you owed a large balance, you can increase withholding to avoid owing again next year.

Frequently Asked Questions

Do I have to file a tax return if I did not earn much income?

You must file if your income exceeds the threshold for your age and filing status — for 2024, that is $14,600 for most people under 65. Even if you earned less, filing may be worth doing if you paid taxes through withholding, because you could receive a refund of money the IRS is holding.

What if I cannot find a W-2 or 1099 from an employer or client?

Contact the employer or client and ask them to send a duplicate. If they do not respond, contact the IRS at 1-800-829-1040 and report the missing form. The IRS can request it from the employer. Do not guess at the amount; the IRS has a copy and will catch the mismatch when it processes the employer's copy.

Can I file my return before I receive all my documents?

You can file with the documents you have, then file an amended return (Form 1040-X) after you receive missing documents. However, this delays your refund and creates extra work. It is usually faster to wait until you have everything, then file once.

What happens if I make a mistake on my return after I file?

You can file an amended return using Form 1040-X within three years of the original filing date. The IRS will recalculate your tax and send you a corrected refund or bill. If the IRS catches the error first, they will send you a notice proposing the correction.

Is there a penalty for filing late?

Yes. If you file after April 15 without an extension, the IRS charges a failure-to-file penalty of 5% of the unpaid tax per month, up to 25%. You can request an extension (Form 4868) to move the important date to October 15, which gives you six more months without penalty, though any tax owed is still due by April 15.