I've covered taxes at CNET the last two years. During this time, I've been asked many tax questions by colleagues, friends and family. Most are about maximizing refunds and the best tax software options to use.
Ever since US President Donald Trump was sworn into office for a second term, I've also been peppered with questions about the fate of the Internal Revenue Service.
With Tax Day approaching, I thought I'd share my advice for anyone who hasn't filed or still has questions about their tax return. Here are some of the most common questions I've answered so far.
1. Is the IRS going away?
There's little to no evidence that the Internal Revenue Service is being dismantled. The agency is crucial to funding the expenditures of the federal government and enforcing tax law.
However, I understand why the question is being asked. The IRS, along with other federal agencies, has faced threats of staff cuts. Last week, the IRS began laying off up to 25% of its workforce.
A hiring freeze is also in effect across the federal government after an executive order signed by Trump on Jan. 20. To date, neither the layoffs nor the freeze have delayed the processing of tax refunds this year.
2. What's the best filing option if you have to file multiple state returns?
We've yet to find a better online DIY solution for taxpayers that need to file multiple state returns than Jackson Hewitt's online tax option.
Jackson Hewitt offers federal filing and unlimited state returns for $25, regardless of your tax situation. The service is pretty bare bones, however, with no option to upload files or tax forms. But if you have a good handle on the forms and schedules you'll need, the service may be a good fit for you.
A decent alternative to Jackson Hewitt is FreeTaxUSA, which charges just $15 per state return. Federal filing is free, no matter your tax situation. Services like TurboTax and H&R Block will charge you substantially more per state return, especially late in tax season.
3. Do I have to pay the IRS by April 15 if I'm waiting on a state refund?
If you have a federal tax bill, you'll need to pay it by April 15. If your state return is large enough to cover your federal tax bill, you can use that money if you receive it in time. If you haven't filed yet, don't expect to see your state refund by the filing deadline.
Your best options are to pay the balance and wait to be reimbursed by your state -- so to speak -- or set up a payment plan with the IRS and pay what you can until you can pay the balance in full.
You can pay your tax bill directly on the IRS website or through the online tax service you chose to file with this year.
4. Does my child need to file taxes?
I've been asked this question a few times by parents with teenagers that have picked up part-time jobs. Your child may choose to file a tax return, even if they don't have to, in order to get a refund on taxes deducted from their paychecks.
However, your child is mandated to file a tax return if they:
- Received more than $14,600, also the standard deduction, in earned income in 2024.
- Have more than $1,300 in unearned income from dividends or interest.
- If your earned and unearned income combined is higher than $1,300, you'll have to file a return.
Otherwise, you are free to claim your child as a dependent on your tax return and claim the child tax credit. But if you're not sure if you meet the above requirements, my advice is to reach out to a tax professional or CPA.
5. Are services like TurboTax and H&R Block really free?
Both TurboTax and H&R Block have free tax filing options available to taxpayers. TurboTax Free Edition is available for taxpayers filing simple form 1040 returns only, with basic credits like the Earned Income Tax Credit, Child Tax Credit and student loan interest. Only 37% of all customers qualify for TurboTax Free Edition, according to the company. H&R Block, meanwhile, says 55% of filers qualify to file their tax return for free. Both work well if you qualify, but both services will try to upsell you.
With any free service that offers multiple paid products, be wary of attempts by software to convince you to pay for software you don't need. Before signing up, make sure to check that the forms you need to report are covered by a free tier.
6. Should you increase your withholdings if you live and work in different states?
In most cases, this won't be necessary. You only need to alter your withholdings on your W-4 form if you repeatedly find yourself owing federal or state taxes after filing a return.
To combat this, you can either lower your exemptions on your W-4 or add an additional tax withholding amount for each check to potentially lower your tax bill. You can also contribute more to your 401(K) or Health Savings Account with pre-tax dollars, which will lower your taxable income
Otherwise, your employer should be withholding taxes in the state in which you work, the state in which you are a resident as well as federal taxes. The state where you reside will typically give you a tax credit for taxes paid to another state.
7. How do I claim student loan interest on my taxes?
Your loan servicer will send you a 1098-E tax form if you paid over $600 in student loan interest in 2024. You may be able to deduct a portion of your student loan interest on your tax return, which lowers your taxable income.
To claim it, you simply have to add the form to your tax return. When using online tax software, you typically add your deductions and credits after entering your personal information and sources of income into the software.
8. Here are all of the tax forms I've received. What online option works best for me?
Everyone's tax situation is different. So it's best to review all registered IRS e-file providers, including those on our best tax software list, to determine which option works best for you.
If you have a simple return, typically involving a W-2 and some basic credits like student loan interest, you may qualify to file for free with a number of online tax software providers, from
TurboTax to IRS Free File. You should also consider factors like the company's help and support options and ease of use to help you make a decision.
Those with more complicated tax situations will likely have to pay to file their tax return. Compare different tax services to determine which company will let you file your return for less, depending on the IRS forms you have.
If you have an especially complicated tax situation this year, it may be best to skip online DIY tax options completely and hire a tax professional.
9. Can I file an extension with the IRS and pay later this year?
You can file a tax extension by April 15 using Form 4868, but you must still pay your tax bill in full by the tax deadline to avoid penalties.
Not having all your tax documents or experiencing an unexpected life event are good reasons to file an extension, but it won't push back your tax bill due date.
If you can't afford to pay your estimated tax bill by April 15, set up a payment plan with the IRS. In some cases, the IRS may make offers in compromise, which allow you to settle your debt for less than you owe.
10. Will you file my taxes for me?
No. While I may know more about filing taxes than the average person, I'm not a tax professional or accountant.
I know that filing your taxes may not be your idea of fun, but there are many DIY online tax software options that are good at holding your hand through the filing process. Many like FreeTaxUSA and TaxAct also offer contextual help to answer common tax questions.
For more tax advice, check out our tax filing cheat sheet. Already filed? Here's how you can track your refund status.
