How to file a US tax return

You must file if your gross income exceeds a threshold that depends on your filing status, age and dependency status. The threshold roughly tracks the standard deduction and changes annually.

You must also file regardless of income if you had net self-employment earnings above a low threshold, owe certain special taxes, received distributions from a health savings account, or had Marketplace health coverage with advance premium tax credits — that last one catches many people who assume no filing is needed.

You should file even when not required in two common cases: if federal tax was withheld from your pay, since filing is how you get it back; and if you qualify for refundable credits such as the Earned Income Tax Credit or the refundable portion of the Child Tax Credit, which pay out even when you owe no tax.

Non-resident aliens file Form 1040-NR rather than 1040, and the rules on residency for tax purposes — the substantial presence test — are separate from immigration status. F-1 and J-1 students are generally exempt from the substantial presence test for a set number of years, which changes which form applies.

The IRS publishes a free interactive tool that answers the filing question in a few minutes. Use it rather than guessing.

Documents arrive between late January and mid-February. W-2 from each employer; 1099-NEC or 1099-K for self-employment and platform income; 1099-INT and 1099-DIV for interest and dividends; 1099-G for unemployment; 1098-E for student loan interest; 1098-T for tuition; 1095-A if you had Marketplace coverage, which is required to reconcile premium tax credits.

IRS Free File is a partnership with commercial providers offering free federal filing for taxpayers below an income threshold that changes annually. It is genuinely free, and it is under-used partly because the same companies advertise paid products more heavily. Access it only through IRS.gov/freefile — going directly to a provider's own site often lands you on a paid version.

IRS Direct File is the newer government-operated option, letting eligible taxpayers file directly with the IRS at no cost. Availability by state and by tax situation has been expanding, and the eligibility criteria change — check IRS.gov for the current position.

VITA provides free in-person preparation by IRS-certified volunteers for people below an income threshold, people with disabilities and limited English speakers. TCE does the same with a focus on taxpayers 60 and over. MilTax serves military members and families free regardless of income.

Free File Fillable Forms are available to anyone at any income, but they are electronic versions of the paper forms with no guidance — suitable if you know what you are doing.

E-file with direct deposit. It is faster, more accurate and produces refunds in roughly 21 days rather than the months a paper return can take.

The Earned Income Tax Credit is the largest and most commonly missed. It is refundable, meaning it pays out even if you owe no tax, and it is worth substantially more with qualifying children — but it is available to workers without children too, which is where most of the missed claims are. The IRS estimates roughly one in five eligible taxpayers does not claim it.

The Child Tax Credit is partly refundable, and the Credit for Other Dependents covers dependents who do not qualify for it.

The Child and Dependent Care Credit covers childcare costs that let you work. The American Opportunity Credit and Lifetime Learning Credit cover education costs — the former partly refundable and worth more for the first four years of higher education.

The Saver's Credit rewards retirement contributions for lower and moderate earners, and is one of the least-claimed credits in the code.

The Premium Tax Credit reconciles Marketplace health subsidies. If you had Marketplace coverage you must file and attach Form 8962, or future subsidies can be blocked.

Deductions are different from credits: a credit reduces tax owed dollar for dollar, a deduction reduces taxable income. Most filers take the standard deduction rather than itemizing, since the standard deduction was substantially raised in 2018. Itemizing only helps if your deductible expenses — mortgage interest, state and local taxes up to a cap, charitable giving, large medical expenses — exceed it.

Form 4868 gives an automatic six-month extension to file, moving the deadline to October 15. It does not extend the deadline to pay. Tax owed is still due April 15, and interest and a failure-to-pay penalty accrue from that date. File the extension anyway if you need it — the failure-to-file penalty is roughly ten times the failure-to-pay penalty, so filing something is always better than filing nothing.

If you cannot pay, file on time and then set up a payment plan. The IRS offers short-term plans up to 180 days and long-term installment agreements, both applied for online in minutes. Interest continues but the failure-to-pay penalty is halved while an installment agreement is in effect.

An Offer in Compromise settles a tax debt for less than the full amount, but eligibility is narrow and the process is demanding. Companies advertising 'pennies on the dollar' settlements are a well-documented scam category — the IRS publishes its own free pre-qualifier tool.

The Taxpayer Advocate Service is an independent organization inside the IRS that helps when normal channels have failed or a tax problem is causing financial hardship. It is free and genuinely effective, and it is under-used.

State returns are separate. Nine states levy no broad personal income tax. Most others follow the federal April 15 deadline but not all do, and if you moved during the year or worked across state lines you may need to file in more than one state. Reciprocity agreements between neighboring states can simplify this — check both states' revenue departments.

The IRS never initiates contact by email, text or social media, and never demands payment by gift card, wire transfer or cryptocurrency. Any such contact is fraudulent.