First Tax Filing in the USA — W-2, 1040, Deadlines, Deductions

Filing taxes in the USA for the first time? Don't worry — it's less complicated than it seems, but there are traps specific to new immigrants.

When to File

The deadline is April 15 each year for the previous year (income from 2025 = filing in April 2026). If you can't make it, you can file Form 4868 to extend the deadline to October 15 — but this is only an extension for filing, NOT for payment. Taxes owed must be paid by April 15.

Resident vs Non-Resident — Key Difference

• Resident alien (tax resident): you report all worldwide income on Form 1040. Test: Green Card OR substantial presence test (~183 days in the USA over a 3-year weighted period).
• Non-resident alien: you report only U.S. income on Form 1040-NR. No standard deduction (except for F-1 students from India). Limited credits, higher tax rate.

What Documents to Gather

• W-2 — from your employer by January 31 (wages + withheld taxes)
• 1099-NEC / 1099-MISC — if you work on a "contract" or freelance basis ($600+)
• 1099-INT — interest from the bank
• 1099-DIV — dividends from investments
• 1098-T — university tuition (AOTC credit up to $2,500)
• 1098-E — interest on student loans (up to $2,500 deduction)
• SSN or ITIN for yourself and all dependents

Standard Deduction 2025

For most people, it is simpler to take the standard deduction than to itemize:

• Single / Married Filing Separately: $15,000
• Married Filing Jointly: $30,000
• Head of Household: $22,500

Itemizing makes sense if you pay a lot in property tax + mortgage interest + have significant charitable contributions.

Key Credits

• Child Tax Credit — $2,000 per child under 17 (with SSN)
• Earned Income Tax Credit (EITC) — for low-income workers (up to ~$66,000 with 3+ children)
• Saver's Credit — for contributions to 401(k) or IRA
• American Opportunity Credit (AOTC) — up to $2,500 per year of college
• Premium Tax Credit — if you purchased health insurance through the Marketplace

How to File — Free Options

If you earn less than $84,000, use IRS Free File — free software from participating companies (TurboTax Free, FreeTaxUSA, TaxAct, etc.). Other options include:

• Cash App Taxes — fully free regardless of income (but no support for 1040-NR)
• FreeTaxUSA — federal free, $15 state
• VITA — Volunteer Income Tax Assistance, free for individuals earning up to ~$60,000 (there are Polish-speaking volunteers in some cities)
• Polish Accountant — typically $150-400 for a simple return

No SSN? Use ITIN

If you work in the USA but do not have an SSN (e.g., spouse on a B-2 visa, child without an SSN), apply for an ITIN using Form W-7 along with your 1040 return. An ITIN allows you to file taxes but does not grant the right to work.

Common Mistakes

• Not reporting Polish bank accounts — if you had a total of $10,000+ in foreign accounts, you must file FBAR (Form 114) with FinCEN. Plus Form 8938 to the IRS if the threshold is higher.
• Not reporting Polish pensions/benefits — worldwide income for tax residents
• Mixing up 1040 with 1040-NR as your first year in the USA — it may be a "dual-status" year
• Forgetting about state tax — most states have their own returns (except FL, TX, WA, NV, SD, WY, AK, TN, NH)