Your First Tax Return: What to Gather and Where to Start

What you need before you file

Your first tax return requires documents that show what you earned and what was withheld from your paychecks. If you worked as an employee, your employer will send you a W-2 form by January 31st — this shows your total wages and the federal and state taxes already taken out. If you were self-employed or did freelance work, you'll need to track your own income and expenses, and you may receive a 1099 form from clients who paid you $600 or more.

Beyond income documents, gather receipts or records for anything you paid for that might reduce what you owe: student loan interest, education expenses, charitable donations, or medical costs. You'll also need your Social Security number, date of birth, and your filing status (single, married, head of household). If someone claims you as a dependent — usually a parent — that affects your return, so confirm that with them first.

Key Takeaways

• Collect your W-2 forms from employers or 1099 forms from clients before you start, since these show your income and taxes already paid.
• The IRS deadline is April 15th, but filing earlier means you'll get any refund sooner if taxes were withheld from your pay.
• You can file for free using IRS Free File if your income is below a certain threshold, or use low-cost software; you do not need to pay for filing.
• If you owe money instead of getting a refund, you can set up a payment plan with the IRS rather than paying the full amount at once.

Deciding whether you have to file at all

Not everyone has to file a tax return. The IRS sets an income threshold — if you earned less than that amount in a year, you may not be required to file. The threshold depends on your age, filing status, and type of income. For example, a single person under 65 with only W-2 wages typically does not have to file if they earned less than $13,850 in 2023, though this number changes each year.

Even if you're not required to file, you should consider it anyway. If your employer withheld taxes from your paychecks and your income was below the threshold, filing gets you a refund of that money. If you're self-employed, you may owe self-employment tax even at lower income levels. The IRS website has a tool to help you determine whether filing is necessary for your situation.

Free and low-cost filing options

The IRS offers Free File, a program that lets you file for no cost if your income is below a certain level — typically around $34,000, though this varies by year. You choose from a list of tax software companies that participate in the program, and they provide their full software at no charge. You can find the current list and income limits on the IRS website under "Free File."

If your income is above the Free File threshold, you can still file inexpensively. Many tax software companies charge $60 to $150 for a basic federal return, and some offer discounts for first-time filers. You can also file by hand using IRS forms and instructions, though this takes longer and leaves more room for mistakes. Some community organizations and libraries offer free tax preparation help through volunteers trained by the IRS — search "VITA" (Volunteer Income Tax Assistance) plus your city name to find a location near you.

Step-by-step: what happens when you file

Whether you use software or file by hand, you'll enter your income from your W-2 or 1099 forms, then claim any deductions or credits you're may have access to to. Deductions reduce the income you're taxed on — for example, student loan interest or educator expenses. Credits directly reduce the tax you owe, dollar for dollar, and are usually more valuable. Common credits for first-time filers include the Earned Income Tax Credit if you're low-income, or the American Opportunity Credit if you paid for college.

Once you've entered all your information, the software or form will calculate whether you owe money or will receive a refund. If you're owed a refund, you'll provide your bank account information so the IRS can deposit it directly — this is faster and safer than waiting for a check. If you owe, you can pay by credit card, debit card, bank transfer, or mail a check. You do not have to pay everything at once; the IRS allows payment plans for amounts you cannot pay immediately.

After you file, keep a copy of your return and all supporting documents for at least three years. The IRS may contact you with questions, and you'll need those records to respond.

What to do if you're claimed as a dependent

If a parent or guardian claims you as a dependent on their return, it changes what you can claim on yours. You cannot claim a standard deduction as large, and you cannot claim yourself as an exemption. However, you still file your own return if you earned enough income — your parent files theirs separately. Ask the person claiming you whether they plan to do so; if they are, they need to tell you before they file so you know what to expect on your return.

Being claimed as a dependent does not prevent you from filing. It just means your standard deduction is smaller, usually limited to your earned income plus $450 (though this amount changes yearly). If taxes were withheld from your pay, you may still get a refund even with this smaller deduction.

Common mistakes to avoid on your first return

The most frequent error is entering income incorrectly — double-check that the numbers on your W-2 or 1099 match what you actually earned. Another common mistake is forgetting to sign and date your return; unsigned returns are rejected. If you file electronically through software, the signature is usually digital, but if you print and mail a paper return, both you and your spouse (if filing jointly) must sign by hand.

Many first-time filers also miss credits they may have access to for because they don't know about them. Before you file, spend a few minutes reading about the Earned Income Tax Credit, the Child and Dependent Care Credit, or education credits — the IRS website has plain-language explanations. If you use tax software, it usually asks questions that help you discover credits you might may have access to for.

What happens after you file

If you file electronically, the IRS typically processes your return within 21 days. If you mail a paper return, allow six to eight weeks. You can check the status of your return using the IRS "Where's My Refund?" tool on their website — you'll need your Social Security number, filing status, and the exact refund amount.

If the IRS has questions about your return, they will mail you a letter. Do not ignore it. The letter will explain what they need and give you a deadline to respond. If you used a tax professional or software, keep their contact information in case you need help understanding the letter.

Frequently Asked Questions

Do I have to file if I didn't earn much money?

Not necessarily — the IRS sets an income threshold below which filing is not required. However, if your employer withheld taxes from your paychecks, filing gets you a refund of that money. Check the IRS website or use their interactive tool to see whether you must file based on your specific income and situation.

What if I don't have all my documents by April 15th?

You can request an automatic extension that gives you until October 15th to file. File Form 4868 with the IRS before April 15th — you can do this through tax software or by mail. Note that an extension to file is not an extension to pay; if you owe taxes, you should pay by April 15th to avoid penalties and interest, even if you file the extension.

Can I file my return myself, or do I need a tax professional?

You can absolutely file yourself, especially if your return is simple — just W-2 income with no business or investment income. Tax software walks you through the process step by step. If your situation is more complex, a tax professional or VITA volunteer can help, but it is not required for a basic first return.

What if I made a mistake on my return after I filed it?

You can file an amended return using Form 1040-X. You have three years from the original filing date to correct most mistakes. If the mistake means you're owed more money, amending gets you that refund. If it means you owe more, file the amendment as soon as you notice the error to minimize penalties.

Do I need to file taxes every year once I file the first time?

Only if you meet the income threshold for your filing status. If your income drops below the threshold in a future year, you're not required to file. However, if taxes were withheld from your pay, filing still makes sense so you can recover that money as a refund.