How to File Taxes in the United States

The United States operates a pay-as-you-go tax system, meaning income tax is paid as income is earned. This process concludes with filing an annual tax return, which reconciles the tax paid with the amount owed. This yearly obligation determines whether you receive a refund for overpayment or need to pay an additional balance. This guide explains the federal tax filing process, from determining your filing requirement to post-filing procedures.

Determining Your Filing Requirement

Whether you are legally obligated to file a federal tax return depends on your gross income, filing status, and age. The Internal Revenue Service (IRS) sets annual gross income thresholds for each category. If your income exceeds the threshold for your filing status, you are required to file.

For the 2024 tax year, a single individual under 65 must file if their gross income is at least $14,600; the threshold is $16,550 if they are 65 or older. For married couples filing jointly, the threshold is $29,200 if both spouses are under 65. This amount increases to $30,750 if one spouse is 65 or older and $32,300 if both are 65 or older.

A Head of Household must file if their gross income is $21,900, which increases to $23,850 if they are 65 or older. A Qualifying Surviving Spouse uses the same thresholds as married couples filing jointly. For those who are married but filing separately, a return is required if gross income is $5 or more.

Other circumstances can also trigger a filing requirement. You must file if you have net self-employment earnings of at least $400, owe special taxes like the alternative minimum tax, or received distributions from a health savings account. The deadline to file is April 15th, unless it falls on a weekend or holiday, which moves it to the next business day. An automatic six-month extension to file can be requested with Form 4868, moving the deadline to October 15th, but this does not extend the time to pay any taxes owed.

Required Information and Documentation

Before preparing a tax return, you must gather all necessary information and documents. This step is foundational for an accurate return and includes personal details, income documentation, and records for any tax benefits you plan to claim.

Personal Information

You will need the full names, dates of birth, and Social Security Numbers (SSNs) or Individual Taxpayer Identification Numbers (ITINs) for yourself, your spouse, and any dependents. A copy of last year’s tax return is useful for your Adjusted Gross Income (AGI), which may be needed to verify your identity when e-filing. For direct deposit or payment, you will also need your bank account and routing numbers.

Income Documentation

Most of your documentation will relate to income. The IRS receives a copy of these forms, so it is important to collect all of them to ensure your reported income matches their records. Common income forms include:

• Form W-2, Wage and Tax Statement, from your employer.
• Form 1099-NEC for income earned as an independent contractor.
• Form 1099-INT for interest income.
• Form 1099-DIV for dividends from stocks or mutual funds.
• Form 1099-G for government payments like unemployment.
• Form 1099-R for distributions from retirement plans.
• Form 1099-B for proceeds from the sale of stocks or bonds.

Documentation for Adjustments, Deductions, and Credits

You will need records to support any adjustments, deductions, or credits you claim. If you plan to itemize deductions, you will need a wider array of documents than if you take the standard deduction. Gather all relevant paperwork, including:

• Form 1098-E for student loan interest paid.
• Records of contributions to a traditional IRA.
• Form 1098 for mortgage interest paid.
• Records of real estate and personal property taxes paid.
• Receipts for charitable contributions.
• Bills and proof of payment for unreimbursed medical expenses.
• Records for childcare expenses, including the provider’s name, address, and tax ID number.

Key Decisions Before Preparing Your Return

After gathering your documents, you must make several decisions that shape your tax return. These choices affect your tax liability and the deductions you can take.

Choosing Your Filing Status

Your filing status is based on your marital status on the last day of the tax year and determines your standard deduction, tax rates, and credit eligibility. The five filing statuses are:

• Single is for individuals who are unmarried, divorced, or legally separated.
• Married Filing Jointly is for married couples who combine their incomes on one return.
• Married Filing Separately is for married couples who file separate returns, with each spouse responsible for their own tax.
• Head of Household is for unmarried individuals who paid more than half the cost of keeping up a home for a qualifying person.
• Qualifying Surviving Spouse is for a surviving spouse with a dependent child and is available for two years after the spouse’s death.

Deciding Between the Standard and Itemized Deduction

A tax deduction reduces your taxable income, and you can choose between a standard or itemized deduction. The standard deduction is a fixed dollar amount that varies by filing status. For the 2024 tax year, the standard deduction is $14,600 for single filers, $29,200 for married couples filing jointly, and $21,900 for head of household.

Alternatively, itemizing involves listing specific expenses on Schedule A of Form 1040. Primary itemized deductions include state and local taxes (capped at $10,000), home mortgage interest, charitable contributions, and medical expenses exceeding 7.5% of your adjusted gross income. You should choose whichever option results in a larger deduction to lower your tax bill.

Step-by-Step Guide to Filing Your Return

After gathering documents and making key decisions, you can prepare and submit your tax return. The method you choose will depend on your comfort with tax preparation, the complexity of your finances, and your budget.

Using Tax Software

Using tax preparation software is a common filing method. These programs use a question-and-answer format to guide you through entering your personal and financial data from your documents. The software performs all calculations, fills in the correct forms, and helps identify potential deductions and credits. After reviewing a summary for accuracy, you can e-file the return directly with the IRS. Many providers offer free versions for simple returns, with costs increasing for more complex situations.

Hiring a Tax Professional

For complex situations or expert guidance, you can hire a tax professional like a Certified Public Accountant (CPA) or an Enrolled Agent (EA). Verify their credentials and ensure they have a Preparer Tax Identification Number (PTIN). You will provide them with all your documents, and they will prepare and file the return on your behalf. After their work is complete, you will review the return and sign Form 8879 to authorize them to e-file it.

Filing by Mail (Paper Forms)

Filing by mail with paper forms is also an option, though it is the slowest method. You can download forms like the Form 1040 from the IRS website, fill them out manually, and attach copies of your W-2s. The mailing address depends on your state and whether you are enclosing a payment, so check the IRS website for the correct location. Assembling the forms in the correct order is necessary to avoid processing delays.

Post-Filing Procedures and Expectations

After submitting your return, you may need to track a refund, make a payment, or respond to IRS correspondence.

Handling a Tax Refund

If you are due a refund, you can track it using the “Where’s My Refund?” tool on the IRS website or the IRS2Go mobile app. You will need your Social Security number or ITIN, filing status, and the exact refund amount. The status is available within 24 hours for e-filed returns or about four weeks for paper returns. The tool shows the progress from Return Received to Refund Sent.

Making a Tax Payment

If you owe taxes, payment is due by April 15 to avoid penalties and interest, even with a filing extension. The IRS offers several payment options. IRS Direct Pay allows free payments from a bank account, while debit cards, credit cards, or digital wallets may involve processing fees. You can also mail a check or money order with Form 1040-V.

Receiving IRS Correspondence

The IRS initiates contact through physical mail, not by email, text message, or social media requesting personal information. If you receive a notice from the IRS, do not ignore it. The letter will explain the issue, provide instructions, and give a response deadline.

Amending a Return

If you discover an error after filing, you can correct it by filing Form 1040-X, Amended U.S. Individual Income Tax Return. This form is used to fix mistakes related to filing status, income, deductions, or credits. You have three years from the original filing date or two years from the tax payment date, whichever is later, to file Form 1040-X. Pay any additional tax owed as soon as possible to minimize penalties and interest.