- Know important tax deadlines
- Understand your filing options (free and paid)
- Learn what documents you need
- Know what to do with a refund or tax bill
Important Tax Deadlines
| Date | What Happens |
|---|---|
| January 31 | Employers must send W-2s; businesses send 1099s |
| Early February | IRS starts accepting returns |
| April 15 | Tax filing deadline (or next business day) |
| April 15 | IRA contribution deadline for previous year |
| October 15 | Extended filing deadline |
Documents You'll Need
Gather these before you start:
Income Documents
- W-2: From each employer
- 1099-NEC: Freelance/contractor income
- 1099-INT: Bank interest income
- 1099-DIV: Investment dividends
- 1099-B: Investment sales
- 1099-G: Unemployment income or state refunds
Deduction Documents
- 1098: Mortgage interest paid
- 1098-E: Student loan interest paid
- 1098-T: Tuition paid
- Receipts: Charitable donations, medical expenses
Other Information
- Social Security numbers for you, spouse, dependents
- Bank account/routing number (for direct deposit)
- Last year's tax return (for reference)
Filing Options
Free Filing Options
IRS Free File
If your AGI is under the current-year IRS Free File threshold, you can use free tax software through IRS.gov/freefile. Includes TurboTax, H&R Block, and others.
Go directly to IRS.gov to access - don't go to the software companies' websites (they'll try to sell you upgrades).
IRS Direct File
New pilot program where you can file directly with the IRS for free. Simple interface, no upselling. Currently available in select states.
Free Fillable Forms
For any income level, but no guidance - you do the math yourself. Best for simple returns if you're comfortable.
VITA (Volunteer Income Tax Assistance)
Free in-person tax prep by IRS-certified volunteers. For people who make $64,000 or less, have disabilities, or have limited English. Find locations at IRS.gov/VITA.
Paid Options
When Paid Software/Help Makes Sense
-
Tax Software ($50-200): TurboTax, H&R Block, TaxAct
Good for moderate complexity - investment income, side gig, rental property
-
CPA or Tax Professional ($200-500+):
Good for complex situations - business owners, high income, multiple states, significant investments
E-File vs Paper Filing
Always e-file if possible. Benefits:
- Faster processing (weeks vs months)
- Faster refund (within 21 days typically)
- Fewer errors (software catches mistakes)
- Immediate confirmation of receipt
If You Get a Refund
Don't blow it! Here's a smart order of operations:
Refund Priority List
- Emergency fund - If under $1,000, build it up
- High-interest debt - Pay down credit cards
- Retirement - Contribute to IRA (until April 15 deadline)
- Other financial goals - Save for house, vacation, etc.
Also consider adjusting your W-4 so you get more money in each paycheck instead of a big refund next year.
If You Owe Taxes
Don't panic. You have options:
- Pay in full: Best option - avoids interest and penalties
-
Payment plan: IRS offers installment agreements
Can set up online at IRS.gov/payments if you owe under $50,000
- Short-term plan: 180 days to pay, minimal fees
- Long-term plan: Monthly payments, setup fee applies
- Offer in Compromise: Settle for less (rare, strict requirements)
Whatever you do, file on time. The failure-to-file penalty is much worse than failure-to-pay.
After You File
- Keep copies of your return and all documents for at least 3 years (7 years is safer)
- Track your refund at IRS.gov/refunds or the IRS2Go app
- Update your W-4 if you got a huge refund or owed a lot
- Start preparing for next year - keep receipts organized throughout the year