Should You Do Your Own Taxes?
For straightforward situations — W-2 income, standard deduction, basic investment accounts — you absolutely can and should file your own taxes. The IRS Free File program provides completely free filing for households under $79,000 in income. TurboTax and H&R Block Free editions cover most simple returns. Professional tax preparation makes sense for complex situations: self-employment with many deductions, major life events, rental properties, or significant investment activity.
IRS Free File (IRS.gov/freefile): Free federal filing for income under $79,000. 12 software partners including TurboTax and H&R Block. IRS Direct File: Now available in 25 states, completely free, directly with the IRS. VITA (Volunteer Income Tax Assistance): Free in-person help for income under ~$67,000, disabilities, or limited English.
What to Gather Before You Start
- W-2 forms — from every employer (mailed or available in your HR portal by January 31)
- 1099 forms — 1099-INT (bank interest), 1099-DIV (dividends), 1099-B (investment sales), 1099-NEC (freelance income), 1099-G (unemployment)
- Social Security numbers — for yourself, spouse, and any dependents
- Last year's tax return — needed for your prior year AGI (required for e-filing)
- Bank account info — for direct deposit of any refund
- HSA and retirement contribution records — Form 5498, Form 1099-SA
Standard Deduction vs Itemizing
For 2025: Standard deduction is $15,000 (single) or $30,000 (married filing jointly). Most taxpayers take the standard deduction — itemizing only makes sense if your deductible expenses exceed these amounts. Common itemized deductions: mortgage interest, state and local taxes (SALT, capped at $10,000), charitable contributions, medical expenses over 7.5% of AGI.
Most-Missed Tax Credits
- Earned Income Tax Credit (EITC) — up to $7,430 for families with 3+ children in 2025. Estimated $1 billion goes unclaimed annually because people don't know they qualify.
- Child Tax Credit — $2,000 per qualifying child under 17
- Saver's Credit — up to $1,000 ($2,000 married) credit for retirement contributions for lower-income earners
- Student Loan Interest Deduction — up to $2,500 in student loan interest, even if you don't itemize
- Child and Dependent Care Credit — for childcare expenses while you work
Forgetting to report 1099 income (the IRS gets a copy — they will know). Missing deductions you qualify for. Entering the wrong routing or account number for direct deposit. Not signing your return electronically. Forgetting to report investment sales from brokerage accounts. Take your time — rushing causes errors that can take months to resolve.