If you miss the tax filing deadline, you can still file your return. You may face penalties and interest if you owe taxes, and those charges grow the longer you wait. If you’re expecting a refund, there’s no penalty for filing late — but you still need to file your return to claim it. Filing as soon as possible helps minimize any additional costs.

You’re required to file if your gross income meets a certain threshold, which depends on your age and filing status. You must also file if you had net earnings from self-employment of $400 or more, or if you owe special taxes such as the Alternative Minimum Tax.

Overtime is generally taxable. But for the 2025 tax year, you can deduct the extra portion of your qualified overtime pay (the “half” in “time-and-a-half”) from your federal taxable income —up to $12,500 for single filers or $25,000 for couples filing jointly. While this lowers your income tax, you generally still owe Social Security and Medicare taxes on the full amount you earned.

You must report all tip income, but you may be able to deduct up to $25,000 of qualified tips from your federal taxable income beginning in tax year 2025. This deduction lowers your income tax bill, but you are still responsible for paying Social Security and Medicare taxes on the full amount you earned.

Students and part-time workers need to file if their income is above the IRS filing threshold for the year. Even if you made less than that, it can still be worth filing — especially if taxes were taken out of your paychecks or if you qualify for refundable credits that could mean money back.

Under the IRS rules for contract work, you can deduct ordinary and necessary business expenses on Schedule C to reduce your taxable income. Common deductible expenses include the business-use portion of your vehicle mileage or costs, home office expenses (if exclusive and regular), professional fees, equipment, supplies and business insurance. Be sure to keep detailed records, such as receipts and mileage logs, to support every deduction you claim.

Scholarships and grants are usually not taxable if you’re enrolled in a program that leads to a degree and you use the money for qualified education expenses like tuition, required fees, books and course materials. But if any portion is used for non-qualified costs — such as room and board, travel, or optional fees — that amount is considered taxable income and needs to be included on your return.

You may be able to deduct up to $2,500 of student loan interest each year, even if you take the standard deduction. Your eligibility depends on your income and filing status.

Several provisions in the new tax law signed in 2025 could affect the tax return you file for the 2025 tax year:

• Tip income deduction: Eligible workers can deduct up to $25,000 in reported tips, though this benefit starts to phase out at a modified adjusted gross income of $150,000 for single filers and $300,000 for married couples filing jointly.
• Overtime pay deduction: Eligible workers can deduct up to $12,500 in overtime pay, or up to $25,000 if married filing jointly. The deduction phases out once modified adjusted gross income exceeds $150,000 for single filers and $300,000 for joint filers.
• Increased child tax credit — Increased from $2,000 to $2,200 for qualified taxpayers
• Deduction for interest payments on certain vehicles — Up to a $10,000 deduction with a phaseout for modified adjusted gross income over $100,000 and over $200,000 for married couples filing jointly
• Increase in the standard deduction — Increases the 2025 standard deduction to $15,750 for single, $23,625 for head of household and $31,500 for married

The time required to file varies based on complexity and filing method. If you’re a simple DIY filer with all your documents ready, it can take less than an hour. If you need support or have multiple forms, budget at least a few hours.

Even with a tax professional, you’ll need to be involved in your tax return. You must provide accurate income documents and review the final return before it’s submitted. Your job is to supply the information; their job is to ensure it’s handled correctly.

Keep copies of all the forms and documents you submit, along with any confirmation numbers, in case the IRS has questions later or you need those documents for future financial applications.

Using a tax professional can cost anywhere from $200 to around $1,500, depending on the complexity of your return. But you may end up saving money — an expert might identify tax credits or deductions you would have missed, potentially increasing your refund enough to cover the service fee.