Need Help With Your Tax Return? Here’s What You Should Know

Tax season can feel overwhelming, especially if you’re unsure about the process. Whether you’re filing for the first time or looking to maximize your refund, understanding tax returns can save time and money. Missing key details could lead to delays, penalties, or a smaller refund.

To streamline the process, it’s essential to know what documents you’ll need, how to choose the right filing status, and which deductions or credits apply to you.

Filing Criteria

Not everyone is required to file a tax return, but knowing whether you need to can help you avoid penalties or missed refunds. The IRS sets income thresholds based on age and filing status. For 2024, single filers under 65 must file if they earn at least $14,600, while those 65 and older have a slightly higher threshold of $16,550. Married couples filing jointly must file if their combined income exceeds $29,200 if both are under 65 or $30,700 if one spouse is 65 or older. These amounts are adjusted annually for inflation, so checking the latest IRS guidelines is essential.

Even if your income is below these limits, filing may still be beneficial. If federal taxes were withheld from your paycheck, you could be eligible for a refund. Refundable tax credits, such as the Earned Income Tax Credit (EITC) or the Child Tax Credit, can also result in a refund even if you owe no taxes. A single filer with no children earning $11,000 in 2024, for example, might not be required to file but could still receive an EITC refund of up to $632.

Self-employed individuals have different rules. If you earn at least $400 in net self-employment income, you must file a return to report and pay self-employment taxes. This applies even if your total income is below the standard filing threshold. Gig workers, freelancers, and small business owners should track earnings carefully to avoid unexpected tax liabilities.

Documents Needed

Having the right paperwork before starting your tax return can prevent mistakes and speed up filing. Employees typically receive a Form W-2 from their employer, which reports wages and taxes withheld. Independent contractors and freelancers may receive a Form 1099-NEC if they earned at least $600 from a single client. Even without a 1099, all self-employment income must be reported.

Investment earnings and other income sources also require documentation. If you earned interest from a savings account, your bank will provide a Form 1099-INT. Brokerage accounts issue a Form 1099-DIV for dividends and a Form 1099-B for capital gains or losses from selling stocks. Rental property owners should track income and expenses, as these affect taxable income. If you received unemployment benefits, the state agency will send a Form 1099-G, which must be reported.

Deductions and credits often require supporting documents. Mortgage interest payments are reported on Form 1098, while student loan interest appears on Form 1098-E. Charitable donations require receipts from qualified organizations. Medical expenses exceeding 7.5% of adjusted gross income may be deductible, but records such as bills and insurance statements are needed. Retirement contributions should be documented with Form 5498 for IRAs and Form 1099-R for distributions.

Choosing Filing Status

Your filing status affects taxable income, standard deductions, and eligibility for tax benefits. The IRS offers five filing statuses: Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Surviving Spouse.

For unmarried individuals, Single is the default status. However, those who financially support a dependent, such as a child or elderly parent, may qualify for Head of Household, which provides a higher standard deduction and potentially lower tax rates. To qualify, you must have paid more than half the cost of maintaining a home for a dependent who lived with you for more than half the year.

Married couples can file jointly or separately. Filing jointly typically results in lower tax rates and access to additional credits. However, filing separately may be beneficial if one spouse has significant medical expenses, student loan payments based on income, or concerns about the other spouse’s tax situation. When filing separately, both spouses must either itemize deductions or take the standard deduction—one cannot itemize while the other takes the standard deduction.

A taxpayer may qualify for Qualifying Surviving Spouse status if their spouse has passed away. This allows them to use the same tax rates and standard deduction as Married Filing Jointly for up to two years after their spouse’s death, provided they have a dependent child.

Credits and Deductions

Tax deductions lower taxable income, while credits directly reduce tax liability. Some credits are refundable, meaning they can increase a refund beyond taxes paid.

For those pursuing higher education, the American Opportunity Tax Credit (AOTC) offers up to $2,500 per eligible student, with 40% of the credit refundable. This applies to tuition, fees, and course materials for the first four years of postsecondary education. The Lifetime Learning Credit (LLC) provides up to $2,000 per tax return without a cap on the number of years claimed, making it useful for graduate students or career development courses. Both credits phase out at higher income levels.

Homeowners may deduct mortgage interest, property taxes, and points paid at closing. The mortgage interest deduction applies to interest on loans up to $750,000 for homes purchased after 2017. Energy-efficient home improvements, such as solar panel installations, qualify for the Residential Clean Energy Credit, which covers 30% of costs with no annual limit. Renters in certain states may also qualify for state-specific tax credits.

Self-employed individuals and small business owners can claim the Qualified Business Income (QBI) deduction, which allows eligible pass-through businesses to deduct up to 20% of net income. Business expenses such as home office costs, internet, phone bills, and professional development courses can also be deducted if they are directly related to business operations. Retirement contributions to SEP IRAs, SIMPLE IRAs, or solo 401(k) plans reduce taxable income while helping build financial security.

Refund Timelines

The timing of a refund depends on the filing method, the type of credits claimed, and whether the IRS flags the return for review. E-filing with direct deposit is the fastest option, with most refunds issued within 21 days. Paper returns take longer, often requiring six to eight weeks for processing.

Certain tax credits can delay refunds. The IRS is legally required to hold refunds that include the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) until mid-February to prevent fraud. If a return is flagged for errors or requires additional verification, processing can take longer. The IRS “Where’s My Refund” tool provides real-time updates, but taxpayers should wait at least 24 hours after e-filing or four weeks after mailing a paper return before checking their status.

Correcting Errors

Mistakes on a tax return can lead to delays, penalties, or an audit. If an error is discovered after filing, the best course of action depends on the mistake. Simple math errors or missing forms may be corrected by the IRS without requiring taxpayer intervention, but more significant issues—such as incorrect income reporting or filing status—require an amended return using Form 1040-X.

Amended returns cannot always be e-filed, meaning taxpayers may need to mail a paper form, which can take up to 20 weeks to process. If an error results in additional tax owed, paying as soon as possible minimizes interest and penalties. The IRS offers payment plans for those unable to pay in full. If a taxpayer realizes they missed claiming a deduction or credit, filing an amendment can secure a larger refund, provided it is submitted within three years of the original filing deadline.

When to Seek Guidance

Tax laws change frequently, and certain situations warrant professional assistance. Owning a business, dealing with foreign income, or navigating life changes like divorce or inheritance can introduce tax complexities that are difficult to manage without expert advice.

Hiring a tax professional, such as a certified public accountant (CPA) or enrolled agent, can be beneficial when facing an IRS audit or if there are concerns about accuracy. Tax software can handle most straightforward returns, but individuals with multiple income sources, large investment portfolios, or real estate transactions may benefit from personalized guidance. Free resources, such as the IRS Volunteer Income Tax Assistance (VITA) program, are available for low-income filers who need help preparing their returns.