Tips for first-time tax filers

Why is filing your taxes important?

The U.S. collects income taxes on all monies earned by an individual while in the U.S. This includes everything from a job to interest on savings. The Internal Revenue Service (IRS) is the federal agency responsible for collecting federal taxes and enforcing U.S. tax laws.

Taxes are used by federal, state, and local governments to fund many aspects of everyday life, from schools and roads to disability and retirement programs, and beyond.

Paying into the system and making sure that you file your taxes every year will mean that you are able to receive refunds, credits, and benefits, as well as avoid any penalties or fees for not filing your taxes.

It’s good to remember that all income earned, whether it is from a job, self-employment, or investing your money, is taxable.

What do you need to file your taxes?

When preparing your taxes, there are crucial documents needed to ensure you are doing it correctly. You will need personal documents, such as your Social Security card, and a current government-issued photo ID.

In addition, you will need documents specific to your income, such as:

• Your Forms W-2 from each of your employers, or Forms 1099-NEC or 1099-K from your self-employment or side gig.
• If you didn’t receive any 1099s from your self-employment or side gig, make sure you have a record of all the income paid to you for the year.
• Employers have until January 31, to send Forms W-2 and 1099s from the prior year.
• You will also need documents detailing applicable deductions from the tax year, such as receipts from charitable donations you made, medical or educational expenses, property taxes, or retirement contributions.

There are many more documents you may need to have ready when preparing your taxes.

Jackson Hewitt has a customized tax document checklist to ensure you know exactly what you need when preparing to file your taxes.

What tax forms do I need to file my taxes?

The IRS Form 1040 is the standard federal tax income form used to report your income and tax deductions, calculate your taxes, and refund or balance due for the year. There are two different types, Form 1040, and Form 1040-SR.

Form 1040-SR is specifically designed for people 65 and over to make filing easier. Both forms calculate your taxable income, how much you should pay in taxes, and determine whether you are due a tax refund or owe the IRS.

There are three schedules, or additional documents, that may need to be included with the Form 1040 depending on your tax situation:

• Schedule 1 is necessary if you have had any additional income or adjustments to your income. This would include business income, rental income, and student loan interest, just to name a few.
• Schedule 2 needs to be filed if you owe any added taxes, such as, self-employment tax, household employment tax, or the alternative minimum tax.
• Schedule 3 is necessary when you have more tax credits and payments. For example, if you want to claim a credit for child and/or dependent care, education credits, saver’s credit, and more, you’ll have to use the Schedule 3. You could also report excess Social Security tax withheld (which typically affects people with more than one job), net premium tax credits, and more.

Finally, there are other schedules and forms you may need to include to file your return accurately, for example:

• Schedule A – Itemized Deductions
• Schedule C – Self-Employment
• Form 2441 – Child and Dependent Care Credit
• Schedule 8812 – Child Tax Credits

Determine how you want to file taxes

There are a few options to choose from when deciding how to file your tax return with the IRS. The old-fashioned filing method is to prepare your return with a pencil and calculator and mail it to the IRS, but there are alternatives that make filing faster and easier and can give you more peace of mind. 

File with a Jackson Hewitt Tax Pro

One way to make filing easy is to work with a Jackson Hewitt Tax Professional. We have skilled professionals at all our locations to help prepare and file your taxes when you’re ready. You can also upload your relevant tax documents online prior to your appointment at an office near you to expedite the process.

Or you can drop off your documents at the nearest Jackson Hewitt location. Find your nearest Jackson Hewitt drop-off location.

E-filing for first time tax filers

All Jackson Hewitt tax filing options offer electronic filing, or e-filing with the IRS, to help protect your tax return, documents, and personal information. A Tax Pro will work with you to make sure that you file using the best and easiest method for you—and the fastest way to receive your refund.

What is the difference between a tax credit and tax deduction?

Both tax credits and tax deductions can lower the amount of taxes you pay for the year. That means you’ll owe less, or even better, get a bigger refund. A Tax Pro can help with what credits will make sense for you.

Knowing what credits and deductions you are eligible for will help when gathering the proper documentation needed to prepare and file your taxes. A tax deduction will reduce your taxable income, while a tax credit will reduce your taxes dollar for dollar or add to your refund amount.

Itemized versus standard deductions

A standard deduction is a specific dollar amount that reduces the amount of income on which you’re taxed. The standard deduction amount depends on your filing status and whether you’re 65 or older, are blind, and whether another taxpayer can claim you as a dependent.

On the other hand, itemized deductions are certain expenses the IRS allows you to deduct from your income to figure out your true taxable income. The more you can itemize, the lower your taxes for the year will be. You could even get a bigger refund.

There are specific circumstances and limits when itemizing deductions. Possible itemized deductions include medical expenses, certain taxes, mortgage interest, charitable contributions, casualty loss in a federally declared disaster area, as well as other miscellaneous deductions.

If you are self-employed, you can claim your self-employment expenses, like your home office, which will reduce your taxable income.

Since every taxpayer’s situation is different, a Tax Pro can help you with deciding whether to itemize or take the standard deduction. But the general rule is easy—you get to pick the bigger deduction of the two: Either the standard deduction that all taxpayers are entitled to, or itemized deductions, if larger.

Choosing the right tax filing status

The IRS has five filing status options for taxpayers required to file income taxes. You can file as single, married filing jointly, married filing separately, head of household, or qualifying surviving spouse. The standard deduction depends on your filing status.

A Tax Pro can help you with choosing the right filing status. Choosing the correct status can save you big dollars at tax time but choosing the wrong one can cost you.

Below are the standard deductions for 2023:

How will my federal income tax and FICA be affected by my filing status?

It’s important to note that federal income tax and FICA are related but are not the same thing. Federal income taxes help fund a wide range of government services. How much you owe depends on your filing status, income level, and for which credits and deductions you qualify. As mentioned above, all your annual income may be subject to federal income tax.

FICA is a U.S. federal payroll tax. It stands for the Federal Insurance Contributions Act andis deducted from each paycheck and is only used to fund Social Security and Medicare. They apply only to compensation you earn as an employee. Your filing status does not affect FICA tax rates and there are, generally, no credits or deductions.

When are the tax filing deadlines?

It is crucial to pay attention to tax deadlines to avoid late fees and trouble with the IRS. Tax Day is usually April 15, but if it happens to fall on a holiday or weekend, the deadline is moved to the next business day. For this year, the deadline was April 18, 2023, and for filing next year’s taxes it will be April 15, 2024.

It is important to note that if you receive all your tax documentation early, you may file your tax return as early as January, so there is no real need to wait until the deadline to file. In fact, it’s beneficial to file early to get the most convenient appointment for you and get your refund sooner, if you’re due one. Filing early is also a great way to avoid having someone else file your return and steal your tax refund.

How to pay the IRS if you owe taxes

If you owe taxes to the IRS, there are many ways to pay. You can pay directly from your bank account with no transaction fee, as well as by making an electronic payment, wire transfer, credit card payment, or sending a check by mail.

If you are unable to pay, you can set up an installment agreement and pay as much as you can each month. There are costs associated with this and interest and penalties will still accrue. Paying as much as you can by the tax deadline in April and paying off the rest monthly is better than not paying at all.

Tax refunds for first-time filers

Once you complete your tax return, you may realize that you are eligible for a refund. You have a few different options for receiving your refund, including a mailed check, direct deposit, getting it on an American Express Serve® card when you file at Jackson Hewitt, or savings bond from the Treasury Department. But the fastest and safest way to receive your tax refund is via a direct deposit into your bank account.

If you file your return with Jackson Hewitt, you can also track your refund with MyJH.

Keep your records

Since the IRS may be able to go back to the last three years, Jackson Hewitt recommends you keep your records electronically for three years.

Safeguarding your documents will also help you prepare future tax returns and will make it easier if you need to file an amended return or get a letter or notice from the IRS.

As this will be the first time you’re filing your tax return, it’s a good idea to work with a Tax Pro to make sure that you have everything you need. Questions? We are always here for you. Speak with your Jackson Hewitt Tax Pro today.

About the Author

Mark Steber is Senior Vice President and Chief Tax Information Officer for Jackson Hewitt. With over 30 years of experience, he oversees tax service delivery, quality assurance and tax law adherence. Mark is Jackson Hewitt’s national spokesperson and liaison to the Internal Revenue Service and other government authorities. He is a Certified Public Accountant (CPA), holds registrations in Alabama and Georgia, and is an expert on consumer income taxes including electronic tax and tax data protection.

More about Mark Steber Our Editorial Policy