A Guide on How to File Federal Taxes

Filing your federal taxes can seem like a daunting task, but it doesn’t have to be. Whether you’re filing for the first time or you’re a seasoned pro, understanding the steps involved can help you navigate the process with ease.

In this guide, we walk you through everything you need to know about filing your federal taxes, including the necessary income forms, deductions, investment income reporting, and other essential details. By the end of this article, you should feel confident and prepared to file your taxes, and we also address some frequently asked questions to help clarify any confusion.

How to File Federal Taxes: A Step-by-Step Guide

Filing federal taxes doesn’t have to be overwhelming. Check out our expert guide below to learn more about how to file file taxes:

Step 1: Gather Your Documents

Before you can file your taxes, it’s crucial to gather all of the necessary documents that report your income, deductions, and credits. Having everything organized will make the process much smoother.

Income Forms

You’ll need specific income forms based on your employment status, earnings, and other sources of income. Here’s a breakdown of the most common forms:

1. Form W-2 (Wage and Tax Statement)

If you’re an employee, your employer will send you a W-2 by January 31. This form reports the income you earned and the taxes that were withheld during the year. Be sure to double-check that all the information is accurate.

2. Form 1099 (Various types for freelance or contract work)

If you worked as an independent contractor, freelancer, or were paid by a non-employer entity, you may receive one or more 1099 forms. The most common ones include:

1099-NEC (Nonemployee Compensation)
1099-MISC (Miscellaneous Income)
1099-DIV (Dividends and Distributions)
1099-INT (Interest Income)
1099-R (Retirement Plan Distributions)

Each of these forms reports different types of income and may come with different instructions.

3. Form 1040 (U.S. Individual Income Tax Return)

The Form 1040 is the main document used for filing your federal taxes. This is the form you will use to report your total income, tax deductions, and credits, and ultimately determine your tax liability or refund. You can download the form from the IRS website.

4. Form 1095-A, 1095-B, or 1095-C (Health Coverage Forms)

If you had health insurance coverage through the Health Insurance Marketplace (form 1095-A), your employer (form 1095-B), or other insurance providers, you may need these forms to indicate your health coverage for the year.

5. Form K-1 (Share of Income, Deductions, Credits)

If you’re a partner in a business or receive income from a trust or S-corporation, you’ll receive a K-1 form that reports your share of income, deductions, and credits. This will be necessary to complete your personal tax return.

Special Forms for Investment Income

Investment income is taxable, and you’ll need the appropriate forms to report any dividends, interest, or capital gains:

Form 1099-DIV (Dividends)
- This form reports any dividends you received during the year, including qualified dividends, which may be taxed at a lower rate.

Form 1099-INT (Interest Income)
- If you earned interest from savings accounts, CDs, or bonds, this form will report how much interest income you received.

Form 1099-B (Proceeds from Broker and Barter Exchange Transactions)
- If you sold stocks, bonds, or other securities during the year, your brokerage will send you a Form 1099-B, which reports your sales proceeds. You’ll need this form to report any capital gains or losses from the sale of investments.

Schedule D (Capital Gains and Losses)
- If you sold investments like stocks, bonds, or mutual funds, use Schedule D to report your capital gains or losses. This form is used in conjunction with Form 1040 to determine how much you owe in taxes.

Other Forms Needed to File for Taxes

If you have additional sources of income, you might need to use other forms, including:

Form 8889 (Health Savings Accounts)
- If you contributed to an HSA (Health Savings Account) or took distributions, this form will be necessary.

Form 1098 (Mortgage Interest Statement)
- This form reports how much mortgage interest you paid on your home loan, which can be deductible if you itemize your deductions.

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Step 2: Determine Your Filing Status

Your filing status determines your tax rates, the number of deductions you’re eligible for, and other important aspects of your tax return.

The most common filing statuses are:

Single
- For those who are unmarried or legally separated.

Married Filing Jointly
- For couples who are married and file their taxes together. This status often provides tax benefits.

Married Filing Separately
- For married couples who choose to file separate returns. This may be beneficial in certain situations, such as when one spouse has significant medical expenses.

Head of Household
- For unmarried taxpayers who provide a home for a qualifying dependent (e.g., a child or other relative).

Qualifying Widow(er) with Dependent Child
- For a widow or widower who has a dependent child and is filing in the two years following the spouse’s death.

Step 3: Identify Deductions and Credits

Tax deductions reduce your taxable income, while tax credits directly reduce the amount of taxes you owe.

Here are some key deductions and credits to consider:

Deductions

1. Standard Deduction vs. Itemized Deductions

You can either claim the standard deduction, which is a set amount based on your filing status, or itemize your deductions if they exceed the standard deduction. In 2024, the standard deduction amounts are:

$13,850 for single filers
$27,700 for married couples filing jointly
$20,800 for heads of household

Common itemized deductions include:

Mortgage interest
Property taxes
Medical expenses (if they exceed 7.5% of your AGI)
Charitable contributions

2. Retirement Contributions

Contributions to a 401(k) or Traditional IRA can reduce your taxable income, depending on eligibility.

3. State and Local Taxes (SALT)

You can deduct up to $10,000 ($5,000 for married filing separately) for state and local taxes, including property and income taxes.

Tax Credits

1. Child Tax Credit

If you have qualifying children under the age of 17, you may be eligible for a credit of up to $2,000 per child.

2. Earned Income Tax Credit (EITC)

For low-to-moderate-income taxpayers, this refundable credit can help reduce taxes owed and potentially result in a refund.

3. American Opportunity Credit

For those paying for higher education, this credit provides up to $2,500 per student for qualified education expenses.

4. Energy-Efficient Home Credit

If you made energy-efficient improvements to your home, you may be eligible for a tax credit.

Step 4: File Your Taxes

Once you’ve gathered all the necessary forms and determined your deductions and credits, it’s time to file your taxes. You can file your taxes in a few different ways:

1. E-filing

The fastest and most secure way to file your taxes is through e-filing. You can file through tax software like TurboTax, H&R Block, or directly through the IRS website using Free File if you qualify.

2. Paper Filing

If you prefer to file your taxes on paper, download the necessary forms from the IRS website, fill them out, and mail them to the appropriate IRS address. However, this process is slower, and you may experience delays in processing and receiving your refund.

3. Professional Help

If your tax situation is complex, or you simply prefer professional assistance, consider hiring a tax preparer or CPA to handle your filing.

Federal Tax Preparation Checklist

1. Gather Income Documents

1. Form W-2 (Wages and Tax Statement)
2. Form 1099 (Freelance, Contract, or Investment Income)
3. Form 1099-INT (Interest Income)
4. Form 1099-DIV (Dividends)
5. Form 1099-R (Retirement Distributions)
6. Form K-1 (Partnership or S-Corp Income)

2. Review Your Filing Status

Single, Married Filing Jointly, Married Filing Separately, Head of Household, or Qualifying Widow(er)

3. Identify Deductions and Credits

Standard Deduction vs. Itemized Deductions (mortgage interest, property taxes, charitable contributions)
Retirement Contributions (401(k), IRA)
Child Tax Credit, Earned Income Tax Credit (EITC), Education Credits (American Opportunity Credit)

4. Health Insurance Forms

Form 1095-A, 1095-B, or 1095-C (Health Coverage)

5. Collect Other Necessary Forms

Form 8889 (Health Savings Accounts
Form 1098 (Mortgage Interest Statement)
Any other specialized forms (business income, rental property, etc.)

6. Review and Organize Information

Ensure all income, deductions, and credits are accurate
Double-check your personal information (e.g., Social Security numbers, dependents)

7. Decide How to File

E-file using IRS Free File or tax software
Paper filing or professional tax preparer assistance

8. Set Up Payment or Refund Preferences

Choose direct deposit for faster refunds
Plan if taxes are owed (consider payment plan options if needed)

By following this checklist, you can ensure that you’re fully prepared when it’s time to file your federal taxes.

Filing Individual Tax Return FAQs

Have more questions about how to file federal taxes? We have the answers!

When is the deadline to file my federal taxes?

The deadline to file your federal taxes is typically April 15th of each year. If that date falls on a weekend or holiday, the deadline is moved to the next business day.

Can I file for an extension?

Yes, you can file for an automatic extension using Form 4868, which gives you an additional six months to file your taxes. However, the extension is only for filing; you still need to pay any taxes owed by the original deadline to avoid penalties and interest.

What if I can’t pay the taxes I owe?

If you owe taxes but can’t afford to pay them in full, you can set up a payment plan with the IRS. Use Form 9465 to request a payment agreement.

What should I do if I made a mistake on my tax return?

If you realize there’s an error on your tax return after filing, you can file an amended return using Form 1040-X. This allows you to correct mistakes and claim any additional deductions or credits you missed.

How long will it take to get my refund?

If you file your taxes electronically and choose direct deposit, you can typically expect your refund within 21 days. Paper filings can take longer.

Let Us Help You File Your Federal Taxes

If you’re unsure about any step, consider consulting a tax professional to help guide you through the filing process. At Swick & Associates, we make filing your federal taxes easy and stress-free. Our experienced tax professionals are here to guide you through every step of the process, ensuring you maximize deductions and credits while staying compliant with tax laws. Contact us today to learn more about our individual tax filing options.