Money Scale
Young Adults & College
Lesson 16 of 266 min65 XP
Young Adults · Adulting logistics

Filing your taxes for the first time

It's one form for most people, takes ~30 minutes, and IRS Free File is actually free.

What you'll need on hand

  • W-2 from every employer (mailed/emailed by Jan 31).
  • 1099-NEC for any side-gig income $600+.
  • 1099-INT from any bank where you earned $10+ in interest.
  • Last year's return (if you have one) — speeds verification.
  • Bank routing/account # for direct-deposit refund.

Common credits to check

  • EITC — Earned Income Tax Credit, refundable. Big for low-mid income earners.
  • Saver's Credit — up to 50% of your retirement contributions back.
  • American Opportunity / Lifetime Learning — education credits.
  • Premium Tax Credit — if you bought health insurance through HealthCare.gov.
Use IRS Free File

If your AGI is under ~$79,000, you qualify for free guided software via IRS Free File. Don't pay TurboTax for what's free at irs.gov.

Don't skip the state return

Most states require their own return. Skipping is expensive — penalties stack quickly.

Real life: meet 23-year-old: W-2 + $1,200 freelance

Aiden had a $52k W-2 plus $1,200 from a freelance design gig. He used IRS Free File, declared the 1099, took the Saver's Credit ($200), and filed in 38 minutes. Net refund: $410.

Refund: $410 · Time spent: 38 min

Takeaway

Filing is one evening once a year. Free File covers most early-career situations. Always file — even if you owe nothing.

Quick check · 65 XP

Most early-career W-2 workers should file using…

For parents & teachers

Takeaway: Filing taxes is a 30-minute task once a year, made scary by paid software marketing.

Try together: Walk through IRS Free File together using sample (or real) numbers. Time it. Demystify it for life.