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You can file your taxes on your own or hire a professional. Find out your filing status, what forms you need, and what filing method is right for you.
Are you ready to discover your college program?
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The months leading up to the April tax deadline can be a stressful time of year. It can also be confusing. What is your filing status, what paperwork do you need, and what tax filing method should you use?
Everyone has their own unique tax obligations. Some owe money to the government, while others expect a refund. You can work with a tax professional (who may have an advanced degree like a master’s in taxation) to figure out your situation, or you can file your taxes yourself.
The Internal Revenue Service (IRS) offers plenty of useful tax information to get you started, but this guide will help take the guesswork out of the process.
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Choose Your Filing Status
Your tax filing status affects your tax rate, the forms you need to submit, and the credits and deductions you qualify for. You choose one of five filing statuses based on your marital status, including: single, married filing jointly, married filing separately, head of household, and qualified surviving spouse.
Single filers are unmarried, divorced, or legally separated and do not qualify for any other status as of Dec. 31, 2024. This status typically offers fewer credits and lower deductions than the other options. Single filers may also pay higher tax rates compared to some statuses, such as head of household.
Married couples can file their taxes together, which combines their incomes and deductible expenses. You can qualify for this status as long as you were married on the last day of the tax year (Dec. 31). Even couples with only one income can file jointly.
This status may give a higher standard deduction and lower taxes than if you were to file separately. However, if you owe taxes or penalties, both parties will be responsible in a joint filing. You can choose whichever married option offers the best outcome.
Married couples can also file separately. This option is for couples who don’t agree on a joint return or those who want to keep their finances separate. It can also have advantages for couples where one person has high medical bills and want to capitalize on the income-based deduction allowances.
This status may also have drawbacks, including higher tax rates and limited access to deductions and credits. For example, if you file separately, you cannot claim the Earned Income Tax Credit unless you cared for a child for at least six months while separated or living apart from your spouse.
The head of household status is available to you if you are unmarried and paid more than half of the household costs for a dependent. Dependents can include your children if they lived with you for more than half the year and your parents.
Filing under this status offers you a higher standard deduction and a lower tax rate than filing as single or married filing separately.
If your spouse died during the tax year, you can file jointly as married for that tax year. For the two years following their death, you can no longer file jointly, but you can still benefit from the lower joint return tax rates and higher standard deduction amounts.
To file as a widow(er), you must check the “qualifying surviving spouse” box. To be eligible for this, you must have lived with a dependent child for the entire year and paid more than half the household costs.
The tax process is fairly automated, which makes it easier to collect the paperwork you’ll need to file your taxes and submit your Form 1040, the standard income tax return form for reporting income, claiming deductions, and calculating your refund or what you owe.
Your employer, bank, and investment companies will send your tax forms starting in January. To stay organized, consider keeping these documents in a dedicated file so you’re ready to go before the deadline.
Gather any forms that relate to your income, deductible expenses, credits, and other financial details. Proper documentation will improve your experience and maximize your deductions.
Explore the sections below for more information on the forms you may need and how they might impact your tax return.
Your taxable income includes your employment wages and salaries, rental income, investments, benefits paid to you, and other income like prize winnings. Below, we highlight some of the most common tax forms to report income. Be sure to keep all your supporting documents even after you file.
Form W-2/W-2C: Provided by your employer, the Form W-2 showcases your annual income, withheld taxes, and retirement plan contributions. Form W-2C is used to correct any errors made on Form W-2.
Form 1099G: This form documents certain government payments you received throughout the year, such as unemployment compensation, taxable grants, and income tax refunds.
Form 1099-NEC/1099-MISC: Form 1099 reports non-employee contributions or income paid to independent contractors, freelancers, and other self-employed professionals. Form 1099-MISC reports miscellaneous earnings not included on Form 1099-NEC.
Form 1099-INT: You’ll receive this form if you earned interest income throughout the year, such as interest paid on U.S. savings bonds or interest penalties.
Form 1099-DIV: This form reports any dividends or distributions you received during the year, including those from investments and capital gains and losses.
Tax deductions are expenses or losses that you can subtract from your taxable income to reduce the taxes you owe. There are two types of deductions: standard and itemized.
The standard deduction is based on your filing status: $14,600 for single filers, $21,900 for head of household, and $29,200 for married couples filing jointly.
Itemized deductions are documented individually, such as charitable donations and medical expenses. You can claim these only if they exceed the standard amount, but you need proof of each deduction (like receipts).
You can claim some expenses in addition to the standard deduction, including student loan interest and business use of your car or home.
Deductions lower your taxable income, but tax credits directly lower the amount of tax you owe. In some cases, you can even receive a refund from a tax credit. Here are some of the most popular tax credits available to American taxpayers.
Popular tax credits:
Earned Income Tax Credit (EITC): Available to low- and moderate-earning taxpayers, the EITC provides credits between $632-$7,830 depending on the number of dependents you have. To qualify, you need to have earned income but not exceed the adjusted gross income limit.
Child Tax Credit: The Child Tax Credit provides a tax break to parents with dependent children under the age of 17. The credit can reduce your taxes owed by up to $2,000 per child. Up to $1,700 of that may be refundable.
American Opportunity Tax Credit (AOTC): The AOTC provides credits of up to $2,500 for taxpayers who earned less than $90,000 and paid education expenses during the year. If your tax bill is reduced to zero, up to $1,000 of the AOTC is refundable.
Retirement Savings Contributions Credit (Saver’s Credit): The Saver’s Credit is a tax credit for payments made to your individual retirement arrangement (IRA) and other retirement plans. The amount of the credit depends on your adjusted gross income and varies from 10%, 20%, or 50% of eligible contributions.
Pick Your Tax Filing Method
You can do your taxes in one of three ways: e-filing/mailing your forms directly to the IRS, using third-party tax preparation software, or hiring a tax professional. Explore each option below to find the most suitable pathway for your situation.
The IRS offers three options to file your tax return with them directly at no cost: Direct File, Free File, and paper form.
If your income is less than $84,000, you can use the Free File option and submit your taxes using the IRS’ tax preparation software. Taxpayers from one of 25 eligible states can use Direct File, the IRS’ new guided online system. You can also print out and mail your completed Form 1040 to the IRS.
While these methods are cost-friendly, they may not offer the same level of assistance and personalization as the next two methods.
According to the IRS, more than 66 million Americans filed their taxes online in 2024. Tax software has simplified the filing process, with 93% of users reporting that their software was user-friendly in a 2024 IRS survey. Tax preparation software can also help taxpayers maximize their credits and deductions for a reasonable cost.
Three of the most popular software programs include:
Intuit TurboTax: TurboTax offers a user-friendly program with free and paid, individual and business options. The service imports your documents and information, offers tax tips and guidance, and guarantees 100% accuracy. TurboTax provides audit support and a promise to pay any IRS penalties that result from incorrect returns.
H&R Block: H&R Block’s tax software offers multiple tiers, including basic, deluxe, and premium editions for the most complex returns. The service provides step-by-step guidance and a 100% accuracy guarantee. With H&R Block, users can import their documents and previous tax returns and file their taxes online or in person with a tax professional.
TaxSlayer: TaxSlayer is a budget-friendly option with free, classic, premium, and self-employed options. The service promises fast returns, 100% accuracy, and maximum deductions and refunds. Users can get free email and phone support or paid tax professional advice and audit support.
Hiring a tax professional makes it easier on you during tax time, especially if you have a complex tax situation. Whether you’re newly married or recently changed your job, these experts can handle the trickiest finances and answer the most difficult questions you have.
While tax professionals are one of the more expensive routes, they can also save you money in the long term by optimizing your deductions, credits, and refunds. They also offer professional guidance throughout and after the tax season, one of the reasons why over 85 million Americans hired tax professionals to prepare and submit their returns electronically in 2024.
You can do taxes yourself in several ways, including using a tax software or sending your completed forms directly to the IRS. Doing it yourself can save you money, but you need to gather all your documents and be thorough when completing each form to ensure your return is accurate.
The three basic ways to file your taxes include: filing with the IRS directly, using a tax software, and hiring a tax professional. Each method features different costs, support, and difficulty levels.
The tax deadline for most taxpayers is usually April 15, but you can submit Form 4868 to request a six-month extension.
Tax professionals vary in price depending on your location and the level of service you need. At H&R Block, for example, prices start at $89 plus the state fee, which starts at $75. According to a National Society of Accountants survey, the average fee for a federal/state tax return was $180.
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