Gen Z’s Guide to Mastering Tax Season: 6 Essential Tips
Tax season can feel like a daunting rite of passage, especially for Gen Z—many of whom are filing returns for the first time. Between gig work, student loans, and social media side hustles, young adults face a unique mix of financial realities. But here’s the good news: you don’t have to dread April 15. With a little know-how, you can turn tax filing into a chance to save money, snag refunds, and build confidence. Here are six practical tips to help Gen Z conquer tax season like pros.
1. Figure Out If You Even Need to File
Not everyone has to file a tax return, and that includes you. For 2025, the IRS says single folks under 65 only need to file if their gross income hits $14,600 or more. Living with parents? If they claim you as a dependent, your threshold drops to $5,350 of earned income (like wages) or $1,350 of unearned income (like interest). But here’s the kicker: even if you’re below those limits, filing might still score you a refund—especially if taxes were withheld from a part-time job. Check your W-2 and don’t leave cash on the table.
2. Gather Your Paperwork Early
Taxes aren’t a last-minute TikTok trend—you need the right docs to make it work. Start with your Social Security number (triple-check it; typos are a rookie mistake). If you worked a traditional job, grab your W-2, which employers must send by January 31. Freelanced on Fiverr or sold vintage tees on Depop? Look for 1099s from those platforms, due by mid-February. Lost a form? Hit up your employer or the IRS website. Getting organized now beats scrambling later.
3. Tap Into Free Filing Options
Why pay to file when you can do it for free? The IRS’s Direct File program, expanded to 25 states in 2025 (think California, Texas, New York, and more), lets you file online at no cost if your return’s straightforward—W-2 income, no itemized deductions. Another gem: IRS Free File, open to anyone with an adjusted gross income of $84,000 or less. Gen Z’s tech-savvy edge makes these tools a breeze. Skip the pricey apps unless your taxes get wild.
4. Claim Credits You Deserve
Tax credits are like free money, and Gen Z can cash in. The Earned Income Tax Credit (EITC) is a big one—up to $8,046 if you’ve got kids, but even solo filers with low to moderate income (say, under $63,398 for a single person with three kids) can snag a piece. Students, listen up: the American Opportunity Credit offers up to $2,500 for college costs, with $1,000 refundable even if you owe nothing. Don’t sleep on these—they’re yours for the taking.
5. Watch Out for Gig Economy Traps
Side hustles are Gen Z’s jam, but they come with tax twists. That $5,000 you made reselling sneakers online? If it crossed a payment app like Venmo, you might get a 1099-K in 2025 (threshold’s dropping to $2,500 next year). Here’s the deal: only profits are taxable. If you bought those kicks for $4,000, you only owe taxes on the $1,000 gain. Keep receipts and track expenses—sloppy records can cost you. And if you’re raking in steady gig cash, look into quarterly estimated payments to avoid a year-end shock.
6. Don’t Trust Everything You Scroll
Social media’s full of tax “hacks”—some legit, some sketchy. That viral video promising you can dodge taxes with a weird loophole? Probably nonsense. The IRS’s “Dirty Dozen” list for 2025 warns against bad online advice that could land you in hot water (or an audit). Stick to trusted sources like IRS.gov or a legit tax pro if you’re stuck. Gen Z might be the DIY generation, but taxes aren’t the place to wing it.
Why This Matters Now
Tax season kicked off January 27, 2025, and the deadline’s April 15—plenty of time, but don’t snooze. Filing early gets your refund faster (average last year: $3,453, up 7.5% so far in 2025) and beats the rush. Plus, with President Trump’s proposed tax changes—like no taxes on tips—floating around, staying sharp keeps you ahead of the curve. For Gen Z, this isn’t just about compliance; it’s about building financial smarts for the long haul.
Your Next Step
Grab a coffee, pull up your laptop, and start small—check your income, snag those forms, and pick a free filing tool. You’ve got this. Tax season doesn’t have to be a vibe killer—it’s your chance to flex some adulting skills and maybe pocket some cash. Get after it.