Filing federal income taxes can be straightforward and easy. Sure, it’ll probably require some preliminary groundwork. But whether you’re filing for the first time or have filed income taxes before, the following information can make the filing process more manageable.
Key takeaways
Most people who work in the United States are required to pay federal income taxes and file an income tax return. But not everyone has to file a tax return.
Whether someone is required to pay taxes depends on gross income, age and tax filing status. But even if someone isn’t required to file a tax return, they may still want to do so in order to benefit from certain tax credits or other tax advantages.
The IRS categorizes taxpayers into five general tax filing statuses:
The IRS has an online filing status tool for taxpayers who don’t know their filing status or need help deciding which status is most appropriate for them.
A taxpayer’s filing status is used to determine:
The tax forms and information taxpayers need to file can vary based on income, employment and marital status. But providing this information may allow filers to qualify for tax deductions and credits, such as for educational expenses, unreimbursed medical expenses or the earned income tax credit.
Some of the most commonly required details include:
After gathering the files, receipts and other documentation needed in order to file taxes, it’s time to do the actual filing. There are five main filing options.
Filing federal taxes online can be done for free. The IRS makes Free File electronic filing—or e-filing—software available to taxpayers who have an adjusted gross income (AGI) below a certain amount (for the 2022 tax year, the AGI threshold is $73,000). The software guides taxpayers through the filing process.
The IRS also makes fillable forms available online to those who don’t want to use the guided e-filing method or who have an AGI over the free-file threshold.
The IRS’ Volunteer Income Tax Assistance program and Tax Counseling for the Elderly program provide basic tax filing services for those who qualify. But certain guidelines apply. For example, the programs may only be available to those with incomes under $58,000 or to taxpayers aged 60 or older.
Commercial tax preparation software is available from several companies online, usually for a fee. In general, these step-by-step software packages make tax preparation easier for those who aren’t accustomed to filing taxes or who may have a more complicated tax return. The software platform typically submits the return directly to the IRS.
Filers can enlist the help of a trusted tax professional, like a tax preparation company or accountant. The IRS offers a directory of authorized e-file providers to help taxpayers find an experienced professional.
The old-school method of filing still exists. The IRS makes paper tax filing forms available, which can be filled out by hand and mailed to the IRS through snail mail. However, the IRS notes that filing paper returns may delay processing for up to six months. So filing electronically may be a better idea for most taxpayers.
Depending on what state the taxpayer lives in, there may be no state income tax to pay. But most states require taxpayers to file a state tax return in addition to the federal return.
Most commercial tax preparation software and tax preparers can help individuals file state returns along with the federal returns. And some states have their own free-file system for those who meet certain requirements.
The last day to file 2022 taxes is April 18, 2023. But a taxpayer can typically file for a tax extension without an issue as long as the return is in by October 16, 2023—six months after the original April tax deadline. And if the taxpayer still doesn’t turn in their taxes? A few things could happen:
When it comes to filing taxes, it pays to be organized. It’s a good idea to set aside relevant documents all year. And keep an eye out for forms from employers and financial institutions in January and February. Then use whichever method is most comfortable—whether that’s e-filing from home or hiring a professional to file the return.
We hope you found this helpful. Our content is not intended to provide legal, investment or financial advice or to indicate that a particular Capital One product or service is available or right for you. For specific advice about your unique circumstances, consider talking with a qualified professional.
The EMVCo Contactless Symbol and Contactless Indicator, consisting of four graduating arcs, are trademarks owned by and used with permission of EMVCo, LLC.
Capital One does not provide, endorse or guarantee any third-party product, service, information, or recommendation listed above. The third parties listed are solely responsible for their products and services, and all trademarks listed are the property of their respective owners.
Your CreditWise score is calculated using the TransUnion® VantageScore® 3.0 model, which is one of many credit scoring models. Your CreditWise score can be a good measure of your overall credit health, but it is not likely to be the same score used by creditors. The availability of the CreditWise tool depends on our ability to obtain your credit history from TransUnion. Some monitoring and alerts may not be available to you if the information you enter at enrollment does not match the information in your credit file at (or you do not have a file at) one or more consumer reporting agencies.
CreditWise Alerts are based on changes to your TransUnion and Experian® credit reports and information we find on the dark web.
