Karla Dennis, EA, MST, is CFO/CEO of the award-winning tax accounting firm KDA Inc.—specializing in tax planning.
Filing your first tax return can feel overwhelming if you do not know where to start. The truth is, once you gather your paperwork and understand the basics, the process is less intimidating than it seems.
Here’s a tax prep checklist for young adults and first-time filers:
1. Get your documents together.
By early February, most of the forms you need should arrive in your mailbox or email inbox. If you worked a full-time job the previous year, that usually means you will receive a W-2. Side gigs or freelance work typically bring 1099s, and if you are in school, you might see a 1098-T form. Banks and investment firms will send forms for interest, dividends or sales via 1099 forms.
Even if the amounts are small, you need to include them. If you suspect that you should receive a tax document, but have not for some reason, reach out to your employer, university or financial institution. Sometimes it may be delivered electronically or the organization may have an old address. If there is an issue with obtaining a form and you are running out of time, consider filing an extension to avoid unnecessary penalties. This can be done for free through the IRS website.
Filing taxes is easier when you are organized. Create a habit now of saving all your tax documents together. Keep copies of past returns, too. They can come in handy for financial aid, apartment applications or even future jobs. Tax professionals may also ask for previous tax returns, so it’s best to keep them organized.
It helps to make a folder on your laptop or phone where you can store digital copies. First-time filers often underestimate how many different forms they will receive. Having them in one spot makes life easier, but these documents have sensitive information, so be sure to store them securely.
2. Figure out if you need to file.
Most people with a job will have to file a return. For 2025, the minimum income that requires filing a tax return for single taxpayers under 65 is $15,750. But even if you earned less, filing can still put money back in your pocket if you had taxes withheld. If your parents still claim you, the rules are slightly different. Dependents have lower income thresholds before a return becomes mandatory. It is worth checking with them so you do not run into problems later.
3. Look into free filing help.
Paying for software is not always necessary. The IRS Free File program is available to taxpayers with an income of $84,000 or less. It is straightforward and partners with well-known tax prep companies.
If you prefer to sit down with someone in person, the Volunteer Income Tax Assistance program may be a fit. VITA sites are usually hosted at schools, libraries or community centers. They focus on people earning under $67,000, and the help is free.
Avoiding Common Errors And Missed Opportunities
The IRS says the most frequent problems come from small mistakes, not complicated ones. Wrong Social Security numbers, skipping income from a 1099 or forgetting to sign are classic examples. Each of these can slow down your refund. Electronic filing with direct deposit is the fastest option; most refunds arrive in less than three weeks this way. Paper returns take longer, are easier to lose track of and should always be sent by certified mail to ensure their delivery.
One of the biggest mistakes first-time filers make is leaving money on the table from tax credits or deductions. Student loan interest can reduce taxable income by up to $2,500. If you paid for classes, you may qualify for the American Opportunity Credit or the Lifetime Learning Credit. Workers who had modest earnings should also check the Earned Income Tax Credit. It can increase a refund even if you do not owe anything. And if you started saving for retirement in an IRA or workplace plan, the Saver’s Credit is designed to reward that effort.
Closing Thoughts
Filing for the first time is part of becoming financially independent. It might feel like a chore, but once you understand the process, it becomes routine. Take the time to learn the basics, make use of free resources and remember to double-check your return. Each year will feel easier, and you will be setting yourself up for a smoother financial future.
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