How to file your income tax returns: Step-by-step guide

As the April 15, 2025 tax deadline approaches, millions of Americans are preparing to file their federal income tax returns. Whether you're a first-time filer or a seasoned taxpayer, understanding the filing process is crucial to ensure compliance with IRS regulations and to maximise potential refunds.

Also read: IRS $1,400 deadline approaching: Here's all you need to know about the stimulus check

Step 1: Determine if you need to file

Your filing requirement depends on your income, age, and filing status. For instance, individuals under 65 must file if they earned $13,850 or more in 2024, while married couples filing jointly must file if their combined income exceeds $27,700. Self-employed individuals must file if they earned over $400, regardless of other factors.

Step 2: Collect required documents

Gather all relevant tax documents, including:

*W-2s from employers

*1099s for freelance work, investments, or gig income

*1098s for mortgage interest or student loan interest

*Social Security numbers for you and your dependents

*Receipts or records for deductions and credits (e.g., education expenses, childcare costs, charitable contributions)

Step 3: Choose your filing method

You can file your return in several ways:

*IRS Free File: Available for individuals earning $79,000 or less, through partnered tax software.

*IRS Direct File (Pilot Program): Available in select states for simple tax situations.

*Tax Software: Platforms like TurboTax or H&R Block offer guided filing for a fee.

*Professional Preparer: Useful for complex returns involving investments, business income, or property sales.

Step 4: Maximise deductions and credits

Explore all eligible deductions (standard or itemised) and credits such as the Earned Income Tax Credit (EITC), Child Tax Credit, or Lifetime Learning Credit.

Step 5: File and Track Your Return

*Submit your return electronically or by mail before April 15. E-filing is faster and more secure.

*Refunds typically arrive within 21 days if you opt for direct deposit.

*Use the IRS’s “Where’s My Refund” tool to monitor your refund status.

Also read: IRS tax refund payments: How long can your refund take once sent by the agency?

*If you cannot file on time, you can request a six-month extension, but remember—you still need to pay any taxes owed by the April deadline to avoid interest or penalties.