U.S. Individual Tax Filing Guide (2024 Tax Year)

Step 1: Gather Documents

Income Documents:
- W-2: Wages (employees).
- 1099 Forms:
  - 1099-NEC/MISC: Freelance/contract work.
  - 1099-INT: Bank interest.
  - 1099-DIV: Dividends.
  - 1099-B: Brokerage sales.
- K-1: Partnership/S-corp income.
Deductions & Credits Proof:
- Mortgage interest: Form 1098.
- Charitable donations: Receipts (IRS-approved charities only).
- Education expenses: Form 1098-T.
- Unreimbursed medical bills: >7.5% of AGI.
Other:
- Social Security Number (SSN).
- Prior-year tax return copy.
- Bank details (for refunds/payments).

Step 2: Choose Filing Status

Status	Who Qualifies?
Single	Unmarried/divorced.
Married Filing Jointly	Married couples (often lowers tax).
Married Filing Separately	Married but filing separately (rarely beneficial).
Head of Household	Unmarried, pay >50% of household costs + have dependents (better deductions).

Step 3: Key Forms & Calculations (Form 1040)

Form 1040 is the main tax return. Follow this workflow:
Income → Adjustments → AGI → Deductions → Taxable Income → Tax → Credits → Refund/Balance Due.

Example: John’s Tax Calculation (2024, Single Filer)

Income:
- W-2 Wages: $50,000
- Freelance (1099-NEC): $10,000
- Bank Interest (1099-INT): $500
- Total Income: $60,500
AGI (Adjusted Gross Income):
- SEP-IRA Contribution: $2,000 (deductible).
- AGI: $60,500 – $2,000 = $58,500
Standard Deduction (2024): $14,600 (Single).
- Taxable Income: $58,500 – $14,600 = $43,900
Tax Calculation (2024 Brackets):
- 10% on first $11,600: $1,160
- 12% on next ($43,900 – $11,600 = $32,300): $32,300 × 12% = $3,876
- Total Tax: $1,160 + $3,876 = $5,036
Credits:
- Child Tax Credit (1 child): $2,000 (partially refundable).
- Tax Due: $5,036 – $2,000 = $3,036
Refund:
- Withholding (W-2): $4,500
- Refund: $4,500 – $3,036 = $1,464

Step 4: Essential Schedules & Forms

Form	Purpose
Schedule 1	Additional income (e.g., rentals, unemployment).
Schedule A	Itemized deductions (if > standard deduction).
Schedule C	Self-employment income/expenses.
Schedule SE	Self-employment tax (15.3% for Social Security + Medicare).
Form 8863	Education credits (American Opportunity/Lifetime Learning Credit).
Form 8962	Premium Tax Credit (Health Insurance Marketplace).

Step 5: Filing Options & Deadlines

Deadline:
- April 15, 2025 (for 2024 tax year).
- Extension via Form 4868 (gives until Oct 15, 2025), but taxes owed are still due by April 15.
Filing Methods:
- IRS Free File: Income ≤ $79,000 (free guided prep).
- Tax Software: TurboTax, H&R Block (~$50–$120).
- CPA Services: Recommended for complex cases ($200–$500).
Track Refunds:
- Use IRS “Where’s My Refund?” tool (updates within 24 hours of e-filing).

Special Situations

Living Abroad (e.g., Bangladeshi Expats):
- Form 2555: Exclude up to $126,500 of foreign-earned income (2024).
- FATCA: Report foreign bank accounts >$10k via Form 114 (FBAR).
Self-Employed:
- Pay estimated taxes quarterly (Form 1040-ES) to avoid penalties.
New Residents:
- File taxes if a U.S. resident alien (Green Card holder/substantial presence test).

Common Mistakes to Avoid

❌ Missing income (e.g., side gigs, crypto).
❌ Incorrect SSN/dependent details.
❌ Forgetting to sign the return.
❌ Overlooking credits (e.g., Earned Income Tax Credit, Child Tax Credit).

Q&A: Urgent Tax Questions

Q: I missed the deadline. What now?
A: File ASAP! Penalty: 5% of unpaid tax/month (max 25%).

Q: Can’t pay my tax bill?
A: Use IRS Installment Agreement (Form 9465) or apply for Currently Not Collectible status.

Q: Is remittance to Bangladesh taxed?
A: No, but you must report worldwide income to the IRS. Use Foreign Tax Credit (Form 1116) if taxed abroad.

Resources

IRS Website: www.irs.gov
Free Help: VITA Program (for income ≤ $64,000).
Tax Tools: IRS Free File, TurboTax

CPA Advice: Hire a professional if you have:

Self-employment income >$50k

Foreign assets

Stock/crypto transactions

Rental properties
*Tax laws change yearly—verify deductions/credits for 2024.*

Keep records for 3 years in case of IRS audits.