What you need to do before you file
Filing a tax return means sending the IRS a report of your income, deductions, and tax payments for the year. You do this once per year, usually by April 15. Before you start, gather the documents that show what you earned and what you paid in taxes.
The documents you need depend on your situation. If you work as an employee, your employer sends you a W-2 form by January 31 showing your wages and taxes withheld. If you're self-employed or have side income, you'll need records of what you earned and what you spent. If you received interest, dividends, or rental income, you'll receive a 1099 form for each source. If you paid student loan interest or made charitable donations, gather those receipts and statements too.
Decide whether you'll file on paper or electronically. Most people file electronically because it's faster, the IRS processes it more quickly, and you get your refund sooner. Paper filing takes longer and the IRS may request more information. Electronic filing also catches math errors before you submit.
Key Takeaways
- Gather your W-2 forms from employers and 1099 forms from other income sources before you start, because you cannot file without them.
- Choose whether to file on paper or electronically; electronic filing is faster and produces a refund weeks sooner than paper.
- You can file yourself using tax software, work with a tax preparer, or use a free filing program if your income is below a certain threshold.
- The IRS important date is April 15, but you can request a six-month extension if you need more time to gather documents or prepare your return.
- After you file, keep a copy of your return and all supporting documents for at least three years in case the IRS asks questions.
Three ways to file your return
File yourself using tax software. Programs like TurboTax, H&R Block, TaxAct, and FreeTaxUSA walk you through questions about your income, deductions, and credits. You enter information from your W-2 and 1099 forms, and the software calculates what you owe or what refund you'll receive. Most software costs between $60 and $150 depending on how complex your return is. You can file electronically directly from the software.
Work with a tax preparer or CPA. A tax preparer or certified public accountant reviews your documents, asks you questions about your situation, and prepares your return for you. They file it electronically and keep a copy on file. This costs more — typically $150 to $500 or more depending on complexity — but it's useful if you're self-employed, own rental property, have investment income, or had a major life change like a marriage or business sale. You can find preparers through the IRS directory of enrolled agents, or ask friends and family for referrals.
Use a free filing program. The IRS partners with tax software companies to offer free filing if your income is below a certain threshold. In 2024, this means your income was roughly $79,000 or less, though the exact amount changes each year. You can find the list of free programs on the IRS website under "Free File." These programs have the same features as paid software but cost nothing.
Step-by-step: Filing electronically with tax software
This is the most common way to file. The exact steps vary slightly between software programs, but the process is the same.
- Create an account and enter your personal information. The software asks for your name, address, Social Security number, and filing status (single, married filing jointly, head of household, etc.). Have your ID ready to verify this information.
- Report your income. Enter information from your W-2 forms first. The software usually lets you type it in or upload the form directly. Then add income from 1099 forms, interest statements, and any other sources. The software adds these up automatically.
- Claim deductions. You can either take the standard deduction (a flat amount that depends on your filing status) or itemize deductions if you have large expenses like mortgage interest, property taxes, or charitable donations. Most people take the standard deduction because it's simpler and often larger. The software calculates which is better for you.
- Claim credits you're may have access to to. Credits are different from deductions — they reduce your tax dollar-for-dollar. Common credits include the Earned Income Tax Credit (EITC) if you have low to moderate income, the Child Tax Credit if you have children, and the American Opportunity Credit if you paid college tuition. The software asks questions to determine which credits explore to you.
- Review your return. Before you file, the software shows you a summary of your income, deductions, credits, and the amount you owe or will receive as a refund. Read this carefully and correct any errors.
- Choose how to pay or receive your refund. If you owe money, the software lets you pay by bank transfer, credit card, or debit card. If you're receiving a refund, you provide your bank account information and the IRS deposits it directly, which is faster than a paper check.
- File electronically. The software submits your return to the IRS. You receive a confirmation number. Keep this number and a copy of your return.
What happens after you file
The IRS processes electronic returns within 21 days. If you're receiving a refund, it typically arrives in your bank account within 21 days of the IRS accepting your return, though it can take longer during busy periods. You can check the status of your refund on the IRS website using your Social Security number, filing status, and refund amount.
If you owe money, you must pay by the April 15 important date to avoid penalties and interest. If you cannot pay in full, you can set up a payment plan with the IRS. The IRS charges interest and a failure-to-pay penalty on unpaid taxes, so paying even a partial amount by the important date reduces what you owe.
Keep a copy of your filed return and all supporting documents — W-2 forms, 1099 forms, receipts, bank statements — for at least three years. The IRS can ask questions about your return during this period. If you claim a deduction or credit and the IRS disagrees, you'll need these documents to support your claim.
Common mistakes that cost time and money
Wrong or missing Social Security numbers. If you enter your Social Security number incorrectly or forget to include a dependent's number, the IRS will reject your return or delay processing. Double-check these numbers before you file.
Mismatched income information. Your employer, bank, or investment company sends copies of your W-2 and 1099 forms to the IRS. If the income you report doesn't match what they reported, the IRS will send you a notice asking for an explanation. Report the same amounts the forms show, or attach a written explanation if there's a legitimate difference.
Forgetting to sign and date your return. If you file on paper, your return must be signed and dated or the IRS will reject it. Electronic filing requires a digital signature or PIN, which the software handles for you.
Filing before you receive all your forms. If you file before your employer or bank sends you a W-2 or 1099, you'll have to file an amended return later. Wait until you have all forms in hand, usually by early February.
If you need more time
You can request a six-month extension to file your return. This moves your important date from April 15 to October 15. To request an extension, file Form 4868 with the IRS by April 15. You can file this form electronically through tax software or on paper.
An extension gives you more time to prepare your return, but it does not give you more time to pay taxes you owe. If you expect to owe money, estimate what you'll owe and pay it by April 15 anyway. If you don't pay by the important date, you'll owe interest and penalties on the unpaid amount, even if you filed an extension.
Frequently Asked Questions
Do I have to file a tax return every year?
Not always. You only have to file if your income is above a certain threshold, which depends on your age and filing status. For 2024, a single person under 65 must file if they earned more than about $14,000. If you earned less, you don't have to file. However, if taxes were withheld from your paychecks, you should file to get a refund.
What's the difference between a W-2 and a 1099?
A W-2 is for employees. Your employer withholds income tax, Social Security tax, and Medicare tax from your paycheck and reports this on your W-2. A 1099 is for independent contractors, freelancers, and other self-employed people. No taxes are withheld, so you're responsible for paying estimated taxes throughout the year and reporting the full amount on your return.
Can I file my return if I don't have a Social Security number?
You need a Social Security number or an Individual Taxpayer Identification Number (ITIN) to file. If you don't have one, you must explore for an ITIN from the IRS before you can file. The process takes several weeks, so explore early if you need one.
What if I made a mistake on my return after I filed?
File an amended return using Form 1040-X. You can file this electronically or on paper. The IRS processes amended returns more slowly than original returns, so allow extra time. If you're owed a refund from the amendment, the IRS will send it to you. If you owe more, you'll receive a bill.
Do I need to file if I'm married but file separately from my spouse?
If you're married, you can file jointly or separately. Filing jointly usually results in a lower tax bill and lets you claim more credits. Filing separately is rarely better, but it may help if one spouse has significant deductions or if you're going through a divorce. Each spouse files their own return with their own income and deductions.