Filing Your First Income Tax Return

Filing your income tax returns might seem daunting, but it’s not as intimidating as it sounds. It’s a task everyone has been doing since 1913 and will continue doing for the rest of their lives. You can choose to hire a professional to prepare your return or do it yourself, with or without income tax software like TurboTax or TaxCut. In any case, there are some important things you should know to make the process smoother.

The Basics

How do income taxes work? The income tax laws are quite complex, but they generally boil down to a few fundamentals:

• Income subject to tax includes wages, investment income (dividends, interest, and capital gains), distributions from retirement plans, self-employment income, income from partnerships and Sub-Chapter S corporations, and a few other items.
• Then, that income is reduced by certain adjustments. Most people have few of these, other than deductible IRA contributions and certain tuition and educational expenses.
• You then get deductions for itemized expenses like state and local taxes paid, mortgage interest, charitable contributions, and a few other less common items. If you do not have a lot of these itemized deductions, you are allowed to take a standard deduction. For 2026, the standard deduction for single filers is $16,100 and $32,200 for married couples filing a joint return.
• The net of these three items is your taxable income.

Once you’ve calculated your taxable income, you then apply different tax rates according to your income bracket. There are separate rates for single individuals and married couples filing jointly. Think of it like a staircase – income in the lower brackets is taxed at the lowest rates, and as you move up the stairs, higher rates apply.

Income Tax Rate Schedules for 2026

Single Return Rate Schedule		Married Filing Jointly Rate Schedule
Taxable income levels	Tax rate	Taxable income levels	Tax rate
0 to $12,400	10%	$0 to $24,800	10%
$12,401 to $50,400	12%	$24,801 to $100,800	12%
$50,401 to $105,700	22%	$100,801 to $211,400	22%
$105,701 to $201,775	24%	$211,401 to $403,550	24%
$201,776 to $256,225	32%	$403,551 to $512,450	32%
$256,226 to $640,600	35%	$512,451 to $768,700	35%
Over $640,600	37%	Over $768,700	37%

Then determine whether you owe money on your return or will receive a refund. Your employer withholds income taxes from each paycheck. You simply compare what has already been withheld with your calculated tax liability. Generally, unless you have a lot of non-wage income or a complicated tax situation, you will have a small refund or owe a small amount. If your refund is large or you owe a significant amount, you should consider adjusting the amount withheld.

Information you will need

Most people starting out and not itemizing deductions only need basic information – their employer will send a Form W-2 for wages, and financial institutions will send Form 1099s with details about dividends, interest, and other investment income.

If you are itemizing your deductions because you have deductions larger than the standard deduction amounts, you will need information documenting those expenses. Your W-2 will have information on state and local income taxes withheld, you will get a statement from your mortgage lender with mortgage interest information, and you will need cancelled checks or other receipts for other deductions.

When to file

Your income tax return is due on April 15th of the following year. For example, your 2025 return is due on April 15, 2026. You can file earlier if you wish. You should get your W-2 by the end of January and your 1099 forms shortly thereafter.

You can also submit an application to get an extension of time to file your return, but most people don’t do this unless it’s absolutely necessary. Additionally, getting an extension doesn’t eliminate the need to pay any amount owed after April 15th.

What IRS form(s) you will need

If you are not using itemized deductions, you can probably use IRS form 1040 EZ. Otherwise, you will probably need several forms – 1040, Schedules A & B and Schedule D. These forms are available online at www.irs.gov, and you can usually find them at public libraries and post offices.

You might also consider using income tax software to prepare your return. Several programs are available, including TurboTax, TaxCut, and others. These tools simplify the process by guiding you through an interview and allowing you to print the forms. They can also enable you to file your return electronically. The IRS website may also offer simple software options.

What to keep and for how long?

Most of the advice here is relatively simple. You should keep copies of your actual returns forever and you must keep the documents to support anything on your return for three years following the due date of the return.

Where it gets complicated is usually with investments and homeownership. You need to be able to document what you paid for a stock for three years after the due date of the return reflecting the sale of the stock. Most brokerage firms provide a year-end statement that shows this information, so it is a good idea to keep year-end statements. Record retention for homeownership involves keeping records of what you paid for your home and the cost of any improvements you make.

Final Words

Everyone’s tax situation is different. This article presents only some of the basic information you may find helpful. If your situation is complicated or if you do not feel comfortable with any part of preparing your return, find and use the services of a qualified tax professional.