Filing Taxes for the First Time? Here’s What You Need to Know
If you’re filing taxes for the first time, you might be feeling a mix of emotions—confusion, stress, maybe even panic. The forms, deductions, tax brackets, and IRS rules can feel overwhelming. But here’s the truth: filing your taxes doesn’t have to be complicated.
Whether you just landed your first job, started a side hustle, or became financially independent, this guide will walk you through the entire process. By the end, you’ll feel confident about filing your 2025 taxes the right way.
Let’s break it down step by step.
Step 1: Figure Out If You Need to File Taxes
Not everyone is required to file a tax return. The IRS has set income thresholds that determine whether you need to file.
For 2025, you must file a tax return if your income is at least:
- $14,600 (Single)
- $29,200 (Married Filing Jointly)
- $21,900 (Head of Household)
Even if you earned less than these amounts, you should still file if:
- You had taxes withheld from your paycheck and want a refund
- You’re eligible for tax credits like the Earned Income Tax Credit (EITC)
- You had self-employment income of $400 or more
Many first-time filers skip filing because they assume they don’t owe taxes, but this could mean missing out on a refund. If you’re unsure, filing is always the safest option.
Step 2: Gather Your Tax Documents
Before you start filing, make sure you have all the necessary paperwork. Here’s what you’ll need:
- W-2 Form – If you worked a job where taxes were withheld
- 1099 Forms – If you freelanced, did contract work, or earned side income
- Bank Interest Statements – If you earned interest on savings
- Student Loan or Tuition Forms – If you paid for college
- Proof of Health Insurance – If applicable
- Previous Year’s Tax Return – If you filed last year
One common mistake first-time filers make is waiting until the last minute to gather documents, which can lead to missed deductions and errors. Keeping everything in one folder throughout the year will make tax season much easier.
Step 3: Choose the Right Filing Status
Your filing status affects your tax rate and refund eligibility. Here are the five options:
- Single – If you’re unmarried and not supporting dependents
- Married Filing Jointly – If you’re married and filing with your spouse
- Married Filing Separately – If you and your spouse want to file separately
- Head of Household – If you’re unmarried but financially support a dependent
- Qualifying Widow(er) – If your spouse passed away recently and you have dependents
Picking the wrong filing status could mean paying more in taxes than necessary. If you’re unsure, tax software or a professional can help determine the best option for you.
Step 4: Understand Deductions & Credits (How to Pay Less in Taxes!)
The IRS offers two ways to lower your taxable income:
1. Standard Deduction vs. Itemized Deductions
Most first-time filers take the standard deduction because it’s easier and requires no extra paperwork.
- $14,600 (Single)
- $29,200 (Married Filing Jointly)
- $21,900 (Head of Household)
If your eligible deductions (medical expenses, mortgage interest, etc.) exceed this amount, you might benefit from itemizing deductions instead.
2. Tax Credits (Free Money!)
Unlike deductions, credits reduce your tax bill dollar-for-dollar. Some key tax credits for first-time filers include:
- Earned Income Tax Credit (EITC) – For low-to-moderate-income earners
- Child Tax Credit – If you have dependent children
- Education Tax Credits – If you’re in college or repaying student loans
- Saver’s Credit – If you contribute to a retirement account
Many new filers miss out on tax credits simply because they don’t know they qualify. Checking for these can increase your refund significantly.
Step 5: Choose How to File (DIY or Get Help?)
There are two ways to file your taxes:
1. File Online (Best for Simplicity)
Online tax software like TurboTax, H&R Block, and FreeTaxUSA makes tax filing easy. They guide you through questions and auto-calculate your refund.
2. Hire a Tax Professional (Best for Complex Situations)
If you’re self-employed, own a business, or have multiple income sources, working with a CPA or Enrolled Agent ensures accuracy and maximizes deductions.
Many first-time filers make mistakes when filing solo, which can delay refunds or trigger IRS audits. If you’re unsure, professional help is worth considering.
Step 6: File Your Taxes & Track Your Refund
Once you’ve entered all your tax details:
- Double-check for errors – Mistakes can delay refunds.
- Choose direct deposit – This is the fastest way to get your refund.
- E-file for quicker processing – Paper returns take much longer.
The IRS typically processes refunds within 21 days for e-filed returns. You can track your refund using the IRS Where’s My Refund tool.
Waiting until the last minute increases your risk of errors and can delay your refund. Filing early gives you more time to fix any issues.
Final Thoughts
Filing your first tax return in 2025 might seem overwhelming, but with the right approach, it’s easier than you think. Stay organized, take advantage of deductions, and file early to make the process stress-free.
If you’re unsure about your tax situation, getting professional help ensures you file correctly and maximize your refund.
Need Help Filing Your Taxes? Contact Us Today!
For personalized tax assistance, reach out to our founder and CPA, Anshul Goyal, at anshul@kkca.io. Whether you need help with tax preparation, IRS compliance, or maximizing deductions, we’ve got you covered.
Don’t risk costly mistakes—get expert tax guidance today!
Disclaimer
This blog is for informational purposes only and does not constitute legal, financial, or tax advice. Tax laws change frequently, and individual situations vary. Consult a qualified tax professional for personalized guidance.