As the title suggests, I am 22 years old and preparing to file my taxes for the very first time. I intend to handle the entire process myself. For me, this is a matter of lifelong significance. Therefore, I would be deeply grateful if any experienced friends or elders could offer me some guidance.
Filing Taxes for the First Time
byu/Final_Sheepherder768 intax
Posted by Final_Sheepherder768
10 Comments
Unless you have a lot to write off, choose standard deduction. You are probably eligible to use free tax software.
Since you are 22 I am assuming you probably have a simple tax return – Generally if you are under $51,000 in income you can use FreeTaxUSA free file and file federal and state for free.
Make sure you file BOTH Federal AND State. I made the mistake back in 2006 and 2007 of filing Federal only and not State (I did it myself) and I had to pay back over $5000
Take a few online taxes that teach you about individual income taxes to start (I don’t mean “to start” with your 2025 filing, but to start your lifetime expertise in taxation issues).
The 1040 annual tax return is a huge math problem, and the numbers reported on the tax return also have “character” – i.e. you can have 2 different tax returns that BOTH show 10,000 of net taxable income after all deductions – and one tax return will have $1000 of income due on that money and the other return will have $0 tax due on that money – and both will be correct – because the “character” of the income is different.
In that example, the first 10k is “ordinary” income and the second 10k is long term capital gain.
Some deductions are “above the line” (deducted before Adjusted Gross income – AGI -is calculated) and some are “below the line” (deducted after AGI is calculated).
Deductions *reduce the income* on which tax is calculated, while *credits reduce the tax due on the income.*
Learn what that sentence really means for your wallet, and which credits are available and which ones may fit your situation.
Also – I highly recommend learning about payroll reporting / payroll taxes – you will likely have paychecks for the next 50 years, might as well learn how to read a paystub and what it means.
Some tax saving strategies reduce your income tax and your payroll taxes – those are the BEST possible tax incentives out there.
If you like reading, [IRS.gov](http://IRS.gov) has a lot of publications. Its all spelled out there, but – you might find it boring.
[https://www.irs.gov/forms-pubs/about-publication-17](https://www.irs.gov/forms-pubs/about-publication-17)
[https://www.irs.gov/forms-pubs/about-publication-15](https://www.irs.gov/forms-pubs/about-publication-15)
Best bet is software as others have suggested as it will take you through what you need to know and do. Equally, it guarantees that math is accurate.
If you want help with someone in person, I would recommend going to Tax Aide ( [https://www.aarp.org/money/taxes/aarp-taxaide/locations/](https://www.aarp.org/money/taxes/aarp-taxaide/locations/) ).
If you are unsure about the final Tax return ( like myself ) – I have created an automated tool which will give you insights on your return and missed opportunities.
You can try it out as well
[https://app.review.signalshq.ai/](https://app.review.signalshq.ai/)
Just use turbotax ez pz. been doing it since I was your age over 10 years ago and it makes it so simple.
One huge tip I can give is, go to the IRS website, create and ID.me account and then youll be able to look at your wage transcripts from whatever year youre filing for. Make sure your income matches what you have on the IRS wage transcript bc thats what they have to compare against. I feel like this is a largely overlooked step and could prevent a lot of issues for people filing themselves. TBH the whole process is cake and probably very simply for you
Do not over think the process.
Do not try to build up detailed lists of deductions and expenses. You will need 15,000 of deductions to make it worth doing the math to get an exact number. If all you have is HOME MORTGAGE interest deductions (not credit card interest) and a few medical bills and some contributions to charity, you will not need to waste any time chasing itemized deductions. You can deduct $2,500 worth of student loan interest payments without itemizing. Take the standard deduction.
Do not be afraid to try multiple tax software. They ask the same questions using slightly different words.
They all should come up with the same refund amount.
Read IRS publication 17. (And the equivalent for your state.)
Free tax USA