As the April 15 deadline for filing federal tax returns approaches, many members of Gen Z are feeling anxious about the process. A recent CNET survey found that more than half of Gen Zers reported feeling anxiety about doing their taxes this year. The survey also revealed that 33% of Gen Zers feared making a mistake, 18% worried about their information being at risk to scammers, and 15% were concerned they would owe more to the IRS than they could afford.
For many young people, filing taxes can be a daunting task. Alyssa Melani, 23, told USA TODAY that she finds the process intimidating. “It’s really intimidating, and every season I’m forever feeling like I don’t know what I’m doing,” she said.
However, it’s essential to take the time to file taxes correctly and on time. Missing the deadline can result in late payment penalties and interest, unless you request an extension. CPA and TurboTax expert Lisa Greene-Lewis emphasized the importance of filing taxes early. “The earlier the better,” she said.
Here are five things to know before the 2025 tax season comes to an end:
1. You may want to file even if you don’t need to: Even if the IRS does not require you to file a return, you may still want to. If your employer withheld any portion of your pay for taxes, you may qualify for a refund. The IRS has said it has more than $1 billion in unclaimed returns.
2. Make sure you input your social security number correctly: Inputting your social security number incorrectly is one of the simplest yet most common mistakes that can get you into trouble when doing your taxes. Greene-Lewis emphasized the importance of double-checking this information.
3. Don’t miss out on credits or deductions: Tax deductions can lower your amount of taxable income, while tax credits can reduce the amount of tax you owe. Taking the time to research these can save you hundreds, if not thousands, of dollars.
4. Check if you are a dependent: If you are living with a parent or guardian, or receiving their help for tuition or living expenses, they will probably claim you as a dependent on their tax returns. You’ll need to note your status as a dependent on your own return as well.
5. Don’t be afraid to ask for help: If you find tax season confusing, you’re not alone. Around half of taxpayers enlist a tax professional to help them file, but Gen Z is the least likely to seek professional assistance. If you decide to file by yourself, IRS Direct File may be able to help. The program simplifies the returns process and allows taxpayers in 25 participating states to file directly online.
It’s also important to be cautious when seeking advice online. While social media and AI chatbots may offer helpful tips, experts like Greene-Lewis warn that not all information online is reliable. It’s essential to verify information through reputable sources, such as the IRS or tax professionals, to ensure accuracy and avoid potential pitfalls.
