10 Frequently asked questions about tax preparation in the U.S

Tax season can be confusing, especially with changing IRS rules. Below you’ll find the most common questions taxpayers ask when preparing their U.S. tax returns.

1. Who is required to file taxes in the U.S.?

The requirement to file a tax return depends on several factors, including income level, marital status, and age.

You must file a tax return if:

• Your income exceeds the IRS thresholds.
• You are self-employed and earned more than $400 in net income.
• You wish to claim a tax credit or receive a tax refund.

2. What is the deadline to file my tax return?

For the 2024 tax year, the tax filing deadline is April 15, 2025.

If you need more time, you can request an extension until October 15, 2025, but any taxes owed must still be paid by April to avoid penalties.

3. What documents do I need to file my taxes?

To properly prepare your tax return, you should have:

• W-2 forms (employees) or 1099 forms (self-employed workers)
• Records of deductions (mortgage interest, medical expenses, education)
• Social Security Number (SSN) or ITIN
• Bank information for direct deposit or payments

4. What is an ITIN, and how do I obtain one?

An Individual Taxpayer Identification Number (ITIN) is issued by the IRS for individuals who do not qualify for a Social Security Number.

You can apply using Form W-7, submitted with the required documentation.

5. How can I reduce my tax bill?

For the 2025 tax year, common strategies include:

• Taking the standard deduction
• Claiming available tax credits (EITC, Child Tax Credit)
• Contributing to retirement accounts (IRA, 401(k))

6. What happens if I don’t file my taxes on time?

Failing to file on time may result in:

• Failure-to-file penalty: 5% per month (up to 25%)
• Failure-to-pay penalty: 0.5% per month (up to 25%)

7. How do I know if I will receive a tax refund?

You may receive a refund if you overpaid taxes or qualify for refundable credits.

You can track your refund using the “Where’s My Refund?” tool on the IRS website.

8. What should I do if I make a mistake on my tax return?

If you discover an error after filing, you must submit an amended return using Form 1040-X.

9. Do self-employed individuals need to file taxes?

Yes. For the 2025 tax year, freelancers and contractors earning over $5,000 through digital platforms may receive Form 1099-K.

10. How can I avoid errors when filing my taxes?

To minimize mistakes:

• Use reliable tax software or a tax professional
• Double-check all personal and financial information
• Stay informed about tax law changes

At Limitless Tax, we help you prepare your tax return quickly, accurately, and stress-free. Book a consultation with our experts today.