Overview
Filing your taxes is one of those annual responsibilities that can feel bigger than it really is. The rules change from year to year, the forms are confusing, and it’s common to worry that you’re missing something important.
If you’ve ever felt unsure of what information you need to gather or where to start, this guide has you covered. Whether you’re preparing a simple return or dealing with income from multiple sources, we’ll explain how to file and cover a few crucial choices that affect your final result.
How to File Taxes: A Step-by-Step Guide
Here’s a step-by-step look at what to gather, how filing works, current tax brackets, and tips to avoid mistakes.
Step 1: Gather your tax documents
Before you start your return, it helps to collect all the forms and records you’ll need to report your income, deductions, and credits. Having everything in one place makes for a smoother filing process.
The documents you need depend on your specific situation, but some common ones include:
Form W-2 from your employer
1099 forms for freelance and investment income and government payouts
1098 forms for mortgage interest and student loan interest
Statements for retirement account contributions, HSA contributions, and medical insurance premiums
Receipts or records for deductions, like charitable donations or childcare expenses
Property tax and vehicle registration payment records
Last year’s tax return
If you have a small business or side hustle, you’ll also need your profit and loss statement and vehicle mileage log.
Step 2: Decide how you’ll file your return
You have several options for filing your income tax return. The one you choose depends on your financial complexity and comfort level.
DIY tax software. Several software programs exist for preparing your tax return on your own, including TurboTax, H&R Block, TaxAct, and TaxSlayer. This is a good option if you have a relatively simple return. For example, you’re a W-2 employee, don’t own a business, rental properties, or extensive investments.
Tax professional. It’s worth hiring a professional if you have self-employment income, rental properties, investment gains, have recently gone through major life changes, or have complicated tax questions. This is usually the most expensive option, but a tax pro can ensure your return is accurate and possibly identify valuable deductions or credits you might miss on your own.
IRS Free File. If your adjusted gross income is $84,000 or less, you can access the IRS’s Free File program. The federal government partners with reputable tax software programs that will guide you through preparing your tax return on your own.
Paper tax forms. You can download tax forms at IRS.gov or pick them up at a local taxpayer service center or some libraries, fill them out by hand, and mail them to the IRS. This is typically only a viable option if your tax situation is straightforward and you don’t mind taking the time to read the form instructions thoroughly. Also, keep in mind the IRS has to manually input handwritten forms into its systems, so they’re prone to error, and it could take a while to get your refund.
- IRS-certified volunteers. If you earn $67,000 or less, have a disability, are age 60 or older, or are a military member or veteran, the IRS’s Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs offer free basic tax preparation. Use the VITA/TCE Locator Tool to find a location near you.
Step 3: Understand your filing status
Your filing status affects your tax bracket, deductions, and eligibility for certain credits. For the 2025 tax year (returns filed in 2026), your filing status options are:
Single: unmarried, divorced, or legally separated
Married filing jointly: married or your spouse passed away during the tax year
Married filing separately: married but don’t want to file a joint return with your spouse
Head of household – single and paid more than half of the living expenses for yourself and a qualifying dependent
Surviving spouse: your spouse died during the past two years, and you have a dependent child
Your filing status depends on your marital status on the last day of the tax year. For example, if you finalize your divorce on December 31, the IRS considers you to be single for the entire year.
If you’re not sure which filing status to choose, the IRS’s What is my filing status? tool will ask you a few questions and select the right one.
Step 4: Choose between the standard deduction and itemizing
You can reduce your taxable income using the standard deduction or by itemizing deductions. Generally, you can choose whichever option results in a lower tax bill.
Standard deduction
The standard deduction is a fixed amount set by the IRS. For 2025 returns, the available standard deductions are:
Single and married filing separately: $15,000
Married filing jointly and surviving spouse: $30,000
Head of household: $22,500
If you’re age 65 or older or blind, your standard deduction increases by $1,600 if you’re married and $2,000 if you’re single or file as head of household. The additional standard deduction increases to $3,200 and $4,000, respectively, if you’re age 65 or older and blind.
Itemized deductions
Itemized deductions include out-of-pocket medical expenses, state and local taxes, home mortgage interest, and charitable contributions. If your available itemized deductions exceed the standard deduction available for your filing status, itemizing can lower your taxable income.
Step 5: Claim tax deductions and tax credits
In addition to the standard or itemized deductions, there are other tax deductions you may be able to claim. These depend on your financial situation, but some common ones include:
Contributions to a traditional IRA
Money you put in a health savings account
Moving expenses for military servicemembers
You may also be eligible for tax credits. While a tax deduction reduces your taxable income, a tax credit directly lowers your tax bill, dollar for dollar. Because of this, credits offer a larger tax benefit than the same amount in deductions.
Some common tax credits include:
Most tax software programs will ask questions about your situation to help you identify potential tax deductions and credits. A tax professional will do the same.
Step 6: Submit your return
The tax filing deadline is April 15, 2026. If you need more time, you can request an automatic six-month extension by filing Form 4868 by that date. An extension gives you more time to file your return. It doesn’t give you more time to pay the tax due.
Before submitting your return, check your Social Security number and those of your spouse and dependents. Incorrect numbers can lead to e-filing rejections and processing delays.
If you expect a refund, filing electronically with direct deposit is the fastest way to receive it. If you owe taxes, you can pay electronically or mail a check. Pay the amount you owe by the deadline to avoid penalties and interest.
If you can’t afford to pay the tax you owe, set up an IRS installment agreement. This lets you pay the tax due over an extended period in monthly installments, reduces your penalty rate, and helps you avoid aggressive collection actions like tax liens, levies, or wage garnishments.
Keep in mind, these instructions cover federal income tax returns. Depending on where you live and earn income, you may need to file one or more state income tax returns. Tax rules and rates vary from state to state.
Tax Brackets for 2025 and 2026
The U.S. has a progressive tax system, meaning it taxes higher income levels at higher rates. There are currently seven tax brackets. Each bracket’s rates apply only to the income within that range, not your entire income.
2025 federal income tax brackets
These brackets and rates apply to taxable income earned in 2025.
| Tax rate | Single | Married filing jointly and surviving spouse | Head of household | Married filing separately |
| 10% | $0 to $11,925 | $0 to $23,850 | $0 to $17,000 | $0 to $11,925 |
| 12% | $11,925 to $48,475 | $23,851 to $96,950 | $17,001 to $64,850 | $11,925 to $48,475 |
| 22% | $48,476 to $103,350 | $96,951 to $206,700 | $64,851 to $103,350 | $48,476 to $103,350 |
| 24% | $103,351 to $197,300 | $206,701 to $394,600 | $103,351 to $197,300 | $103,351 to $197,300 |
| 32% | $197,301 to $250,525 | $394,601 to $501,050 | $197,301 to $250,500 | $197,301 to $250,525 |
| 35% | $250,526 to $626,350 | $501,051 to $751,600 | $250,501 to $626,350 | $250,526 to $375,800 |
| 37% | $626,351 or more | $751,601 or more | $626,351 or more | $375,801 or more |
2026 federal income tax brackets
These brackets and rates apply to taxable income earned in 2026.
| Tax rate | Single | Married filing jointly and surviving spouse | Head of household | Married filing separately |
| 10% | $0 to $12,400 | $0 to $24,800 | $0 to $17,700 | $0 to $12,400 |
| 12% | $12,401 to $50,400 | $24,801 to $100,800 | $17,701 to $67,450 | $12,401 to $50,400 |
| 22% | $50,401 to $105,700 | $100,801 to $211,400 | $67,451 to $105,700 | $50,401 to $105,700 |
| 24% | $105,701 to $201,775 | $211,401 to $403,550 | $105,701 to $201,750 | $105,701 to $201,775 |
| 32% | $201,776 to $256,225 | $403,551 to $512,450 | $201,751 to $256,200 | $201,776 to $256,225 |
| 35% | $256,226 to $640,600 | $512,451 to $768,700 | $256,201 to $640,600 | $256,226 to $384,351 |
| 37% | $640,601 or more | $768,701 or more | $640,601 or more | $384,351 or more |
The Point
Filing your taxes doesn’t feel quite as intimidating when you understand the basics and follow a process. Gather the right documents, choose the filing method that fits your situation, and take advantage of tax deductions and credits that reduce the amount you owe.
As you move through each step, remember you don’t need to handle your taxes alone. If you run into questions, have a more complicated tax situation, or simply want peace of mind that you’re making the right choices, reach out to a qualified tax professional.
by your friends at The Daily Navigator
