Politics

How to File Your Federal and State Taxes Easily in 2025

Filing taxes is something almost every working American has to do, yet it can feel confusing or overwhelming, especially if it’s your first time. The good news is that with a little guidance, understanding how to file your federal and state taxes becomes much easier. This guide will walk you through the process step by step.

What Are Federal and State Taxes?

In the United States, taxpayers are generally required to pay both federal and state income taxes.

Federal taxes are paid to the Internal Revenue Service (IRS) and help fund national programs like Social Security, defense, and healthcare.

State taxes are collected by individual state governments to pay for things like schools, transportation, and local services. Not every state charges income tax. As of 2025, states without income tax include Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, and New Hampshire (which taxes only investment income).

Who Needs to File Taxes?

You may need to file a tax return if:

  • You earned over a certain income threshold during the year
  • You are self-employed and made $400 or more
  • You received unemployment benefits
  • You earned freelance or gig income
  • You want to claim a refund or a tax credit

Income thresholds vary based on your filing status (single, married, head of household), age, and dependency status. Even if you earned less than the required amount, you may still benefit from filing a return, especially if you’re eligible for tax credits like the Earned Income Tax Credit (EITC).

When to File Your Taxes

The IRS typically opens the tax filing season in late January. The standard deadline to file both federal and most state taxes is April 15. If that date falls on a weekend or holiday, the deadline is extended to the next business day.

Filing earlier in the season can help you avoid delays, especially if you’re expecting a refund.

Documents You’ll Need

Before starting your tax return, it’s important to gather all necessary documents. Having these ready will help you file accurately and avoid delays.

Personal Information

  • Social Security Number or Individual Taxpayer Identification Number (ITIN)
  • Your spouse’s and dependents’ SSNs or ITINs, if applicable
  • Bank account details for direct deposit

Income Documents

  • W-2 forms from employers
  • 1099 forms for freelance, contract, or investment income
  • Records of unemployment benefits
  • Documentation of self-employment income
  • Rental income and other income sources

Deduction and Credit Documents

  • 1098-E for student loan interest
  • 1098-T for education expenses
  • 1098 for mortgage interest
  • Receipts for charitable donations
  • Records of medical or childcare expenses

How to File Federal Taxes

Choose Your Filing Method

You have several options when it comes to filing your federal tax return:

  • Use online tax software
  • Hire a tax preparer or accountant
  • Use IRS Free File services if your income is below a certain level

Tax software is generally user-friendly and walks you through each step. If your finances are more complex, hiring a professional may save time and reduce the chance of error.

Fill Out Form 1040

Form 1040 is the main form used for individual income tax returns. With the help of software or a preparer, you’ll report your income, claim deductions and credits, and calculate how much tax you owe or the size of your refund.

Submit Your Return

You can submit your return electronically (e-file) or by mail. E-filing is faster and more secure and is the preferred method for most taxpayers. Be sure to sign your return electronically and keep a copy for your records.

Pay or Receive Refund

If you owe taxes, you can pay by bank transfer, debit or credit card, or by check. If you are due a refund, the IRS recommends selecting direct deposit, which is the fastest way to receive your money.

How to File State Taxes

Filing state taxes follows a similar process to filing federal taxes but varies by state.

Visit Your State’s Tax Website

Each state has its own tax agency and filing system. You can find your state’s official site by searching for your state’s Department of Revenue. Most offer online filing and payment options.

Use Tax Software

Most tax software includes state returns for an additional fee. The software will import your federal return details, making state filing faster and easier.

Complete and Submit Your State Return

Fill in your state-specific income and deductions. States may offer unique credits or tax rules, so make sure you review them carefully. Once complete, file your return electronically or by mail, depending on what your state allows.

Should You Use Tax Software or a Professional?

Choosing between software and a tax professional depends on your financial situation.

Tax Software

Best for people with straightforward returns. It’s affordable, easy to use, and fast.

Tax Professional

Ideal if you have a complex tax situation involving multiple income sources, self-employment, investments, or real estate. A professional can help you navigate complex tax codes and potentially reduce your tax bill.

Common Mistakes to Avoid

Avoiding common tax mistakes can save you time and trouble later. These include:

  • Missing the filing deadline
  • Entering incorrect Social Security numbers
  • Using outdated tax forms
  • Forgetting to report all sources of income
  • Mistyping your bank information for direct deposit
  • Overlooking eligible deductions or credits

Tips for Faster Refunds

To receive your refund as quickly as possible:

  • File early in the season
  • Use electronic filing (e-file)
  • Choose direct deposit as your refund method
  • Avoid filing paper returns unless required
  • Double-check for errors before submitting

Most taxpayers who file electronically and choose direct deposit receive their refunds within 21 days.

What If You Can’t File on Time?

If you can’t meet the April 15 deadline, you can request an extension using IRS Form 4868. This gives you until October 15 to file your return. However, the extension only applies to filing — not to payment. You still need to estimate and pay any taxes owed by April 15 to avoid penalties and interest.

Final Thoughts

Learning how to file your federal and state taxes doesn’t have to be complicated. By organizing your documents early, choosing the right filing method, and understanding the basics of the tax process, you can handle tax season with more confidence.

Whether you’re filing on your own or with help, the key is preparation. Understand what you need, know your deadlines, and don’t be afraid to ask for help if your tax situation is more than you’re comfortable handling.

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