Filing Your First Tax Return

Most young filers take the standard deduction -- a flat amount the IRS lets you subtract from your income, no receipts required (for the 2026 tax year roughly $15,750 if you file single and $31,500 married filing jointly; verify the current year's figure on irs.gov). You itemize instead only if your deductible expenses exceed that amount, which is rare early in your career.

If your interest plus dividends top $1,500 in a year, you must attach Schedule B to list where it came from. And if you sold any investments, each sale flows onto your return via the 1099-B -- a loss can even lower your tax. Do not skip these just because the amounts feel small.

The IRS now offers Direct File (and Free File partners) -- genuinely free tools for simple returns, no paid software needed. Gather your W-2 and any 1099s, pick your filing status (most young single people file 'single'), and the tool walks you through it. File by the April deadline; if you cannot pay what you owe, still file on time and set up a payment plan -- the penalty for not filing is far worse than the penalty for not paying.

Make the standard deduction concrete. Sara worked her first summer job and earned $12,000 in wages. Her employer withheld about $600 in federal income tax. When Sara files, she subtracts the 2026 single-filer standard deduction (roughly $15,750) from her $12,000 -- which brings her taxable income to $0. Result: she owes $0 in federal income tax, and the IRS refunds the full $600 her employer withheld. The standard deduction is why most first-time filers get a refund rather than a bill, and why filing on time (even when you 'don't think you owe') is worth doing -- you have to file to get the refund back.