Tax Prep 101: A Beginner’s Guide to Filing Your Taxes

Published on March 28, 2025 – Last Updated on March 28, 2025

You have started making an income and as proud of yourself as you are, you realize that you also have to learn how to pay your taxes. And knowing the ins and outs of becoming a tax paying citizen isn’t always easy. To help you learn just how you should be paying your taxes, here are some things every beginner should know when filing taxes:

Track your income

If you work in a 9-5 job on a w2, it may be easier for you to keep track of what you’re making, but if you’re someone who works side gigs on a regular basis, you may be unaware of how much money that you’re actually making. However, not reporting income is something that could get you in plenty of trouble with the IRS, so first things first, make sure you’re tracking your income. You should be anyway if you want to be budgeting your money and growing your finances. There is some great budgeting software out there that you can use to make it easier for you.

If self-employed, make quarterly payments

As a self-employed individual who is not on a w2, you’ll need to make sure you’re making estimated quarterly payments every quarter. If you’re new to the world of self-employment, it may not be easy to understand everything you’re supposed to do but take time to research everything you can about tax payments so that you’re avoiding penalties and staying on top of what you owe.

Most people get money back with their tax return, but if you’re a self employed individual, you’re going to owe it. If in doubt, talk to a tax professional or use a tax preparer software today.

Know your deductions 

A tax deduction can help you eliminate some of the taxes you owe, if you’re filing as a small business owner or as a self-employed individual. From your home office to new business equipment, there are various ways that you can pay less to the IRS during tax season.

However, be sure to keep receipts and evidence of what you’re claiming as if you’re ever audited, you’ll want to prove these expenses. If there is one name of the tax game, it’s to know your deductions and be sure you stay on top of where your money is going and what you’re reporting when filing your return.

Look into tax credit

If you want to really get all of the savings you can out of your taxes and avoid paying more than you may have to, talk to a tax professional about the best way to get tax credits. From a child tax credit to mortgage interest credit, there are various options for minimizing the amount that you have to pay to the IRS. Take time to research what’s available before the tax season, so that you can be prepared to get the tax credits that you’re qualified to receive. It’s worth the extra effort to investigate it.

Learn what you need to

If you are new to the world of taxes, which you probably are if you’re reading this, don’t just try to get by on minimal input about how to pay your taxes. Do a deep dive if needed so that you can get the most savings, pay what you owe, and avoid getting in trouble with the IRS. If it seems too daunting, work with a professional to help you figure it all out. It’s always best to understand what you should be doing with your taxes so that you avoid the downfall of not paying your taxes.

In Conclusion

If you want to get on top of your finances and taxes, it’s time to start planning today. You want to be confident that you’re doing everything the best way possible so that you maximize savings and minimize payments. If necessary, don’t be afraid to work with a professional to help you get on top of your taxes.