How to Do Your Own Taxes in 2025: Step-by-Step
Most people pay $150–$400 to have simple taxes filed that they could do themselves in 60 minutes — for free. Here is exactly how.
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📐 Figures verified Sep 25, 2026 against IRS primary sources (Rev. Proc. 2025-32 and the other documents listed under Sources). How we check numbers →
Who Should File Their Own Taxes
The vast majority of Americans have simple enough tax situations to file confidently on their own. You are a good candidate for DIY filing if:
- You are a W-2 employee with one or two employers
- You have interest, dividends, or capital gains from investments (Form 1099-DIV, 1099-B)
- You claim the standard deduction (85% of Americans do)
- You have student loan interest (Form 1098-E)
- You have mortgage interest (Form 1098)
Consider professional help if you own a business with significant expenses, had a major life change (divorce, death, inheritance), have complex investment transactions, or earn rental income with many deductions.
Free Filing Options in 2025
| Option | Who Qualifies | Cost | Best For |
|---|---|---|---|
| IRS Free File | AGI under $84,000 | $0 federal + state | Simple W-2 returns |
| IRS Direct File | Simple returns, most states | $0 federal | W-2 only, no investments |
| FreeTaxUSA | Anyone | $0 federal, $14.99 state | More complex returns |
| TurboTax Free Edition | Simple W-2 returns only | $0 (basic) | Guided interview style |
| H&R Block Free | Simple returns | $0 federal and state | Retail locations for in-person help |
| VITA (Volunteer Income Tax Assistance) | Under ~$67,000 income | $0 completely free | In-person help from IRS-certified volunteers |
TurboTax and H&R Block's free editions often prompt upgrades mid-filing. You may not need to upgrade. If you only have W-2 income, standard deduction, and basic credits, the free edition handles your return. If it asks you to upgrade, consider switching to FreeTaxUSA or IRS Direct File instead — they handle more complex situations free of charge.
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W-2From every employer — due to you by January 31Shows your wages, federal tax withheld, state tax withheld, and Social Security/Medicare taxes. If you had multiple jobs, gather a W-2 from each employer. Check your email and last known employer portals if you haven't received paper copies.
1099Various 1099 forms for non-W-2 income1099-INT (bank interest), 1099-DIV (dividends), 1099-B (investment sales), 1099-NEC (freelance income over $600), 1099-G (unemployment benefits), 1099-R (retirement distributions). Your brokerage may send a consolidated 1099 covering multiple types.
1098Mortgage interest and student loan interest1098: mortgage interest paid (only useful if itemizing). 1098-E: student loan interest (deductible up to $2,500 regardless of whether you itemize, subject to income limits). 1098-T: tuition payments (for education credits).
OtherHealthcare, HSA, and other records1095-A if you had Marketplace health insurance (critical — needed to reconcile premium tax credits). 5498-SA if you contributed to an HSA. Childcare receipts and provider EIN for the Child and Dependent Care Credit. Charitable donation receipts if itemizing.
Standard Deduction vs Itemizing (2025 and 2026 Returns)
For 2025 returns (due April 15, 2026, or October 15, 2026 on extension), the standard deduction is $15,750 (single) | $31,500 (married filing jointly) | $23,625 (head of household) — the 2025 tax law raised it mid-year. For 2026 returns, filed in 2027, it is $16,100 | $32,200 | $24,150, and standard-deduction filers can also deduct up to $1,000 ($2,000 joint) of cash gifts to qualifying charities.
Only itemize if your deductible expenses exceed the standard deduction. For most people, they don't. Common itemizable deductions:
- State and local taxes (SALT cap: $40,000 for 2025 and $40,400 for 2026, reduced for incomes above $500,000 / $505,000)
- Mortgage interest (Form 1098)
- Charitable contributions (cash and non-cash)
- Medical expenses exceeding 7.5% of AGI
If your mortgage interest + state taxes + charitable giving doesn't exceed the standard deduction for your return year and filing status, take the standard deduction. It's simpler and produces an identical or better result for most people.