Filing Taxes for the First Time? Here's a Guide! 💰📄

Filing your taxes for the first time can feel overwhelming—lots of numbers, forms, and unfamiliar terms (W-2? 1040? What do these mean? 🤔). But don’t worry! Whether you’re a teen with your first job or a new arrival in the U.S., this guide will help you navigate the process with confidence.

1️⃣ Do You Even Need to File? 🤷‍♂️

Not everyone has to file taxes, but here’s a quick way to determine if you should:

✅ You earned more than $14,600 in 2024 (single filer under 65)

✅ You had taxes withheld from your paycheck, even if you made less than $14,600, you are still entitled to a tax refund if you overpaid your taxes.

✅ You’re self-employed and made over $400 💼

✅ You received a 1099 form for gig work (Uber, Lyft, DoorDash, freelancing, etc.)

If any of these apply to you, file your tax return. 📆

2️⃣ What Documents Do You Need? 📝

Before you start, make sure you gather these:

🔹 W-2 (if you had a regular job—your employer must send it by January 31)

🔹 1099 (for gig work, contract jobs, or side hustles)

🔹 Bank statements (if you earned interest or investment income)

🔹 ID & Social Security Number (or ITIN for new arrivals)

🔹 Your bank routing number and account number for direct deposit

For a complete list: Click here for our tax preparation checklist.

Employers, banks, and other entities must provide these documents. If you haven’t received them by early February, follow up to avoid delays.

3️⃣ Free Tax Filing Resources 🎉 (Yes, FREE!)

If your income is under $73,000, you don’t need to pay for tax software! Here are some great free options:

🆓 IRS Free File – File online for free: www.irs.gov/freefile

🆓 VITA (Volunteer Income Tax Assistance) – In-person help for those making under ~$60,000. Find a site near you: www.irs.gov/vita- I am a VITA Tax preparer volunteer and I can assure you that these sites are extremely helpful and will gladly answer your questions.

If you prefer filing yourself but want some guidance, TurboTax, H&R Block, and Cash App Taxes offer free versions for simple tax situations. 🖥️

4️⃣ Avoid These Common Pitfalls 🚨

🚩 Listening to bad advice – Stick to official sources; not everyone knows what they’re talking about!

🚩 Failing to file – If you owe taxes and don’t file by April 15, you may face a Failure to File Penalty (5% of unpaid taxes per month, up to 25%).

🚩 Not paying what you owe – If you owe taxes, you’ll face a Failure to Pay Penalty (0.5% per month on the unpaid amount). However, the IRS offers payment plans—no need to panic! 🎭

🚩 Ignoring all income sources – That side hustle? The IRS knows. Report everything to avoid future issues.

🚩 Falling for scams – The IRS won’t text or call demanding money. If someone claims to be from the IRS and asks for your information (SSN/ITIN, addresses, etc) or gift cards, it’s a scam. 🚨

5️⃣ What Happens After You File? 📬

Once you submit your return:

✅ You’ll get a confirmation email 📩

✅ Expect a refund in 21 days or less (if e-filed with direct deposit) or longer if mailed 💵🏦

✅ If you owe taxes, pay by April 15 to avoid penalties. The IRS offers payment plans if needed—no need to stress!

Final Thoughts 💡

Filing taxes for the first time is a key step in financial independence. Even if you receive a refund, consider using it wisely—investing in a high-yield savings account, stocks, or retirement funds can help you build wealth over time. 💰📈

Got questions? Contact Us.

Happy filing! 🎉