File your taxes with confidence
Edited by: Brad Hanson, Senior Editor, Tax
Anxious about taxes? We’re here to help, from start to finish. We outline what to expect, documents to gather, and how to file accurately and track your refund.
Image: file-with-confidenceEditorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse our editorial content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.
What is a tax return?
A tax return is a set of forms and documents you send to the Internal Revenue Service, or IRS, and your state* every year to report your income, expenses and other info that will determine any taxes you might owe — or what the government owes you.
If you paid more taxes than needed throughout the year, you get a refund. If you paid less, you get a tax bill.
*In most states; some states don’t have a state income tax on wages and don’t require state tax returns.
Image: Circle + Icon@2x-1Key tax season dates
Late January–February
When most employers and financial institutions send out your W-2s and 1099s. You’ll need these docs when you file, so keep an eye out. They show your earnings and other info from the previous year.
Mid-April
The federal filing deadline for most people. You can get an extension, but you’ll still have to pay an estimate of what you owe by this date to avoid penalties.
About 3 weeks after filing
Most e-filed refunds arrive in your account within 21 days of IRS acceptance — sometimes sooner if you file early and use direct deposit.
Image: Serious Asian Woman Multi-tasking with Tablet, Notes, and Documents at TableCommon tax terms
You’ll likely encounter unfamiliar terms when filing taxes. Here are key ones to know.
Adjusted gross income (AGI): Your AGI is your total income after subtracting certain adjustments (like student loan interest or contributions to retirement). AGI is key because it helps determine which tax credits and deductions you qualify for.
Exemption: A tax exemption lowers your taxable income, meaning you’re taxed on a smaller amount of money. This helps reduce your overall tax liability.
Filing status: Your tax filing status takes into account your income, age, marital status and whether you qualify as a head of household. When preparing your tax return, you’ll need to choose one of the following filing statuses:
- Single
- Married filing jointly
- Married filing separately
- Head of household
- Qualifying widow(er) with dependent child
Gross income: Gross income is your total income before deductions and withholding. For individuals, gross income includes wages, dividends, alimony, pensions and capital gains.
Standard deduction vs. itemized deductions: When you file your taxes, you can choose to take the standard deduction (a flat amount set by the IRS) or itemize deductions by listing eligible expenses — like charitable donations — individually. For most first-time filers, the standard deduction is the simplest option.
Image: rightGood to know
Even if you choose the standard deduction, you can still claim student loan interest as a separate deduction — no need to itemize!
Tax credit: A tax credit directly reduces the amount of tax you owe, dollar for dollar. Example: If you take a $500 course that qualifies for the Lifetime Learning Credit, you can claim 20% of that cost ($100) as a credit, directly reducing your tax bill by $100.
Tax deduction: A tax deduction reduces the amount of your income that gets taxed, which can save you money. For example, paying $2,000 in student loan interest could lower your taxable income by $2,000. How much you actually save depends on your tax bracket — the range of income that’s taxed at a specific rate.
Withholding: Withholding is the amount of money your employer deducts from your paycheck to prepay your federal, state, and sometimes local taxes. This money is sent directly to the government throughout the year, and the amount withheld is based on the information you provide on your W-4 form (the form you submit to your employer that determines how much federal income tax comes out of each paycheck).
Reality check
Image: true falseA: Generally no — but you may want to file anyway. You could be due a refund if too much tax was withheld from your paychecks or if you qualify for a refundable tax credit.
Ready to get started with your taxes?
Got questions? We have answers.
Online tax-filing services provide step-by-step instructions and built-in accuracy checks. E-filing also helps your return reach the IRS faster than mailing paper forms.
A W-2 is a form sent by your employer that reports how much money you earned and how much tax was withheld for the year. It’s the most essential document for filing, as it proves your income and the taxes you’ve already paid.
By law, your employer must send your W-2 by late January. If you don’t receive it by then, immediately contact your employer’s payroll or human resources department to request a copy. You cannot accurately file without it.
If you earn money through freelance work or a side gig, you may receive forms like the 1099-NEC or 1099-MISC. These forms report the income you earned from a company or client, which you must also report on your tax return.
A W-2 is for people who are employed by a company and have taxes withheld from their paycheck. A 1099 is generally for independent contractors (freelancers or gig workers), who usually have to pay their own taxes later.
Being claimed as a dependent doesn’t automatically exempt you from filing taxes. You’ll need to file your own return if your income exceeds the dependent filing threshold or if you want to claim a refund for taxes withheld. Even if you can be claimed as a dependent, you need to report your earned income on your own return, and you must file if you meet IRS filing requirements.
If you earn $400 or more in net income from freelancing or gig work, you’re required to file a tax return and may owe self-employment tax. Even smaller amounts of freelance income must be reported, but you generally won’t owe self-employment tax unless your net earnings reach $400.
A tax credit reduces your tax bill dollar for dollar, which usually makes it more valuable than a deduction. A tax deduction lowers the amount of your income that’s taxed, reducing your bill based on your tax bracket. In short: Credits have a bigger impact, while deductions help by lowering taxable income.