TAS Tax Tip: Tax resources for individuals filing a federal income tax return for the first time
October 27, 2022 – The Taxpayer Advocate Service shares information to help first-time filers meet their federal tax obligations.
Every year brings new people into the workforce. The Taxpayer Advocate Service (TAS) wants to reach individuals filing tax returns for the first time, or for the first time after a gap in filing, to share information to help them meet their federal tax obligations.
Who is a first-time filer?
Many individuals may be filing a federal income tax return for the first time, or for the first time in several years. This includes:
Students and recent graduates working for the first time
Gig workers who did not previously need to file
Adults returning to the workforce after long periods of unemployment
New military recruits who may be getting their first paychecks
Retirees returning to work to supplement their income
People taking on filing responsibilities after a spouse’s death
People filing only to claim refundable credits
What are some of the challenges for first-time filers?
People who have never filed, and people who have not filed for several years, have similar needs for information and resources. First-time filers may not have experience with taxes in general. The tax law is complex and changes every year. Obtaining tax help from the IRS continues to be difficult. First-time filers may not have a trusted tax professional to rely on, and they may not be able to afford professional help. Free resources are available, and TAS wants to help you find them.
As a first-time filer, you may need help determining:
If you are required to file
Do I Need to File a Tax Return is an interactive tool to help you determine if you need to file. But even if you aren’t required to file, you may be eligible for some refundable tax credits. Who Should File a Tax Return lists many of the benefits of filing a tax return, steps to follow, and other helpful resources.
What you need to gather to file
You will need Social Security numbers (SSNs) or Individual Taxpayer Identification Numbers (ITINs) for yourself and anyone else listed on your tax return.
Wage and income information (collect any Forms W-2 or 1099 you have received). You can order copies of wage and income statements online after creating an Online Account. Remember: parts of college scholarships or grants may be taxable income.
Documentation to support tax credits and deductions. Remember: the standard deduction has been greatly increased, so that itemizing your deductions may not be necessary.
Prior Year Adjusted Gross Income – first-time filers use zero.
Bank account and routing number for direct deposit of a refund.
How to find tax return preparation help
Choosing a Tax Professional
Directory of Federal Tax Return Preparers with Credentials and Select Qualifications
To avoid common errors when filing a tax return, first-time filers and all taxpayers should:
Make sure each name and SSN or ITIN are listed exactly as printed on the individual’s Social Security card issued by the Social Security Administration or the ITIN notice issued by the IRS.
Choose the correct filing status. The Interactive Tax Assistant on IRS.gov can help you choose the correct status, especially if more than one filing status applies. Tax software also helps prevent mistakes with filing status.
Double check your math. Calculation errors are some of the most common mistakes. They range from simple addition and subtraction to more complex calculations. Check your calculations, or better yet, use tax return preparation software that does it automatically.
Double check your bank account numbers. Taxpayers who are due a refund should choose direct deposit. This is the fastest way for taxpayers to get their money. It’s important to make sure the correct routing transit number and account number are used.
Sign your return. An unsigned tax return isn’t valid. In most cases, both spouses must sign a joint return. Exceptions may apply for members of the armed forces or other taxpayers who have executed a valid power of attorney.
Can first-time filers use electronic filing?
Electronic filing, or e-filing, refers to the process of filing one’s tax return electronically, using approved online software. Most first-time filers can use e-file. E-filing is becoming increasingly popular because of its benefits:
E-filing has brought about increased flexibility in the filing of tax returns and is a lot more convenient because you can file your tax return from the comfort of your home, at any time.
You sign your return digitally when e-filing, preventing the possibility of sending an unsigned return.
E-filing saves a huge amount of time and money. When tax returns are e-filed, the data is directly transmitted online from the e-filer’s servers to the tax agency’s servers. You won’t have to print and mail your tax return, or wait for a paper return to be received, opened and input by an IRS employee. Because you’re inputting the data yourself, you can avoid potential input, or transcription, errors.
Because transcription errors can be avoided by accurately e-filing, the overall tax return filing process is more accurate.
When you e-file, you will receive notifications throughout the filing process. You will receive confirmation that your return was received. Within 24 hours, you will be notified whether your return can be processed or if it must be returned, or rejected, to correct one or more errors. In most cases, you can correct the error and resubmit a rejected return. You can also check the status of your return online after it’s been accepted for processing. Paper filing is much more ambiguous. Although you can file a paper return by certified or registered mail to confirm when the IRS receives it, status updates after that point are limited.
Are there tax credits available to first-time filers?
If you are a first-time filer, you may not be aware of credits that can reduce your tax or increase your refund.
Earned Income Tax Credit – This credit is available to taxpayers with low to moderate earned income, with or without a qualifying child.
Education Credit – This credit is available to taxpayers who incurred qualified education expenses. Some education credits are refundable.
Premium Tax Credit – This credit helps eligible individuals and families afford premiums for health insurance purchased through the Health Insurance Marketplace.
Child Tax Credit – This credit is available to individuals with qualifying children. Portions of this credit are available even if the individual did not have income.
Recovery Rebate Credit – Even if an individual did not receive stimulus payments (economic impact payments), the individual can potentially claim recovery rebate credits for 2020 and 2021. Individuals do not need income to qualify for this credit.
More information
The Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs offer free basic tax return preparation to qualified individuals. Low Income Taxpayer Clinics (LITCs) are also available to assist low-income individuals who have a tax dispute with the IRS. LITCs also provide education and outreach to individuals who speak English as a second language.
TAS Resources
Avoid Filing Delays Tips – Handout
English
Korean
Russian
Spanish
Traditional Chinese
Simplified Chinese
Vietnamese
TAS website – Get Help: Filing Returns
TAS website – Get Help: Self-Employment Taxes
TAS website – Get Help: Credits
TAS website – Get Help: Claiming the Earned Income Tax Credit
TAS website – Get Help: Education Credit
TAS website – Get Help: Health Care Premium Tax Credit
TAS website – Get Help: Consequences of Not Filing
TAS website – Low Income Taxpayer Clinics
Taxpayer Roadmap https://taxpayeradvocate.irs.gov/roadmap
Publication 5341 (SP), The Taxpayer Roadmap (Spanish Version)
Publication 5341,The Taxpayer Roadmap
IRS Resources
IRS Free File Options
Who Should File: https://www.irs.gov/filing/individuals/who-should-file
Find Forms & Instructions: https://www.irs.gov/forms-instructions
Get Your Refund Status: https://www.irs.gov/refunds
Your Online Account: https://www.irs.gov/payments/your-online-account
Publication 17, Your Federal Income Tax
Publication 505, Tax Withholding and Estimated Tax
Publication 5348, Get Ready to File (12/08/2021)
Publication 5349, Year-Round Tax planning is For Everyone (12/08/2021)
Publication 1, Your Rights as a Taxpayer
Publication 970, Tax Benefits for Education
Publication 5369, Gig Economy and Your Taxes: Things to Know
Publication 4940, Tax Information for Active Duty Military and Reserve Personnel
IRS Newsroom article: IRS Free File: Ideal for young and first-time filers
First-Time Filer Video: First Time Filing a Tax Return? – YouTube
Visit the Taxpayer Advocate Service’s Get Help center for a list of tax topics to assist you with resolving many tax related issues.
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