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Filing a tax return can be pretty intimidating for anyone, let alone a first-timer. Between the number of forms and the obscure jargon, it’s easy to worry you’re making a critical mistake, missing something important, or leaving money on the table.
But the more you learn, the easier it gets. And on the bright side, filing taxes means you've hit a milestone: You're making money.
If this is your first tax season, many online guides can walk you through the process (including SoFi's).
But here are five things you’ll want to be sure to do:
1. Check if you’re eligible to file for free. You may have read that the IRS’s free Direct File option has ended. But as long as you didn’t earn more than $89,000 in adjusted gross income last year, you’re still eligible for IRS Free File. Choose from one of the eight companies that partner with the IRS and their software will guide you through the process, asking you questions and calculating your math at no cost.
2. Exhaust all possible deductions. The One Big Beautiful Bill Act created several new types of tax deductions, some of which may be particularly pertinent if you’re just starting out. If you earn tips, work overtime, or got a car loan last year, these may reduce what you owe. If you’re eligible, you’ll need to fill out the new Schedule 1-A form. (Pro tip: All three phase out at higher incomes, but you may have more control over that than you realize.)
3. Watch out for scams. If the IRS needs to contact you, it will typically go through the mail first — rather than via email, text, or phone call. Beware of text messages that sound threatening, anyone offering to set up your IRS account, and social media posts about fake tax credits. A new IRS reporting site allows you to report suspected fraud or scams confidentially.
4. Don’t forget side hustles and crypto. Your taxable income may be more than just what’s on your W-2(s). You’ll likely need to report income from side jobs, Etsy sales, or digital assets (see the full list here). For the first time this year, U.S. brokers are required to issue the new Form 1099-DA when you have a gain or loss on crypto, stablecoin, or other tokenized assets. But even if you don't receive that form, they should still be reported.
5. If you get a tax refund, make it count. So far this tax season, federal refunds are averaging about $3,740 — roughly 11% more than this time last year, according to the IRS. If you get a big windfall, consider putting a big chunk toward a financial goal, whether that’s starting an IRA, paying down debt, or saving for graduate school. You can still use some of the money to treat yourself, but contributing to something lasting will set an important precedent and give you a sense of achievement.
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