Key takeaways
Filing a tax return can put money back in your pocket, even if you think you don’t need to file.
Staying organized makes it easier to answer questions now and later.
Understanding a few common credits and deductions can help you recognize opportunities year after year.
Using guided tools can simplify filing and help you feel more confident about your return.
With IRS e-file in full swing, millions of Americans are preparing to tackle their tax returns. Research shows many Americans lack confidence when filing taxes.
Many households are entering tax season under increased financial strain. A recent Qualtrics study conducted on behalf of Intuit Credit Karma, nearly half of Americans (49%) said their financial situation worsened in 2025, with rising costs and unexpected expenses among the most common contributors.
Thankfully, there’s good news: tax knowledge correlates to confidence, better planning, and happier outcomes. The more you know when it comes to filing taxes, the better off you’ll be.
“Despite some apprehension, the good news is a recent Piper Sandler study indicates that many filers can expect to see an increased refund or lower balance due, in some cases by as much as $1,000,” said Lisa Greene-Lewis, CPA and tax expert with TurboTax.
Start by learning the most important and impactful things you need to know for this year’s tax filing season.
1. File even if you think you don’t need to
Avoid the trap of not filing. Yes, it’s tempting to skip the tax prep hassle if your income is low or seems non-existent. But you may be leaving substantial cash on the table.
Each year, over $1 billion in unclaimed refunds goes back to the U.S. Treasury because returns aren’t filed. According to the Qualtrics study, the average refund in 2025 was nearly $3,000, and one-third of Americans rely on their tax refund to make ends meet, according to research by Credit Karma. With new tax provisions taking effect, many filers may see increased refunds or lower balances due this year.
Another reason to file? Some tax returns may qualify for free filing options. If you have straightforward income streams involving W-2 work and little-to-no side hustle revenue or expenses, tools like TurboTax Free Edition (~37% of filers qualify; Simple Form 1040 returns can walk you through the process at no cost for qualifying returns.
2. Keep your tax documents organized
Keep a single folder, spreadsheet, or mobile app for stashing important files and events. This way, you’re ready for any and all questions that may come up when filing.
Some information is required when you file, while other questions may arise later, such as during an IRS inquiry. Keeping your documents organized helps ensure you can respond if needed.
3. Know the most common credits and deductions
Deductions lower your taxable income, whereas credits reduce what you owe dollar-for-dollar. Understanding the most common ones helps you quickly spot opportunities you may qualify for — without starting from scratch each year.
Familiarize yourself with:
The Earned Income Tax Credit (EITC)
The Child Tax Credit
Education credits
The Standard vs. Itemized Deduction (use our Standard vs Itemized Deduction calculator to see which could save you more)
Retirement Contribution deductions
Student Loan interest deductions
Some of the more recent deductions for tips, overtime, and car loan interest
Even if some don’t apply to you now, understanding how credits and deductions help you orient yourself to future tax benefits you may be eligible for.
4. Review last year’s return before starting
Reviewing last year’s tax returns can provide a useful reference before you begin. It helps identify prior income sources, forms used, and any credits, deductions, losses, or carryforwards that may apply again.
Americans spend an estimated 7.9 billion hours preparing tax returns each year. Reviewing last year’s return can help reduce unnecessary effort.
5. Double-check that your numbers match IRS records
Matching reported income to IRS records is one of the most effective ways to avoid filing delays or notices. Discrepancies between what taxpayers report and what the IRS already has on file are a leading trigger for reviews and audits.
IRS systems rely heavily on automated information matching. When your return aligns with the records the IRS already has on file, it’s more likely to move through processing without interruption.
6. Consider using guided tax filing software
Guided tax software can streamline the filing process by asking targeted questions based on your situation and automating calculations along the way. Tools like TurboTax walk you through each step, helping identify deductions and credits while reducing the risk of math errors.
If you’re unaware whether a free filing option applies to you, review what’s included and who it’s designed for before you start.
For straightforward W-2 income with the standard deduction, free versions of tax preparation software are often available. More complex situations — including self-employment income or itemized deductions — may require additional features.
The bottom line
By simply reading through these top tips, you’re ahead of where you were just minutes ago. And when you put these steps into action, you’ll experience tax filing with the confidence of someone who knows more about how to tackle the task every year.
