Tax season made simple(r): ASU professor guides young filers through the fine print

Tax Day is closing in, and for many young adults, filing a return is no longer a quick, one-form task.

Today’s first-time filers are navigating a maze of side hustles, app-based income and digital payments, often for the first time. What should feel like a routine deadline can quickly become overwhelming.

That shift reflects a broader change in how younger Americans earn money. A paycheck might come from multiple sources — some traditional, others not. Income from freelance work, online sales or content creation does not always arrive with clear instructions, leaving many unsure of what counts and what to report.

Arizona State University’s Jenny Brown is helping bring clarity to that confusion. As a School of Accountancy associate professor at the W. P. Carey School of Business, she works closely with students who are learning to file on their own, often while balancing classes, jobs and new financial responsibilities. 

Her message is simple: Understanding the basics can prevent bigger problems later.

Brown encourages young taxpayers to approach filing with intention rather than urgency. Taking time to review income sources, check documents and ask questions can make the difference between a smooth submission and a stressful one.

She believes the goal is not just to file, but to file correctly.

Brown shares with ASU News what first-time filers should double-check, the most common missteps to avoid and how to approach Tax Day with confidence in an increasingly complex financial world.

Question: Many students and young adults are filing taxes on their own for the first time. What are the most common mistakes you see first-time filers make, and how can they avoid them? 

Answer: One of the most common issues is simply not having all your necessary documents organized before starting. Even though most records are now digital, it is still important to keep them in one secure, accessible place — such as a cloud-based folder — so nothing is overlooked.

Another challenge is what I would call “questionnaire fatigue.” Many tax preparation programs are designed to guide users through the process, but they can be lengthy. While it is true that many questions will not apply to first-time filers, it is important not to tune out or rush through them. Those questions are designed to identify situations that could affect your return, and skipping over them can lead to missed income, overlooked credits or errors. A better approach is to start early, save progress and revisit the return with fresh eyes before submitting. Taking that extra time can prevent avoidable mistakes.

Q: Students and young adults are often unsure whether they need to file a tax return, particularly if they are claimed as a dependent. What factors determine whether they should file?

A: Even if you are claimed as a dependent on someone else’s return — such as a parent’s return — you may still need to file your own return. The key factors are the type and amount of income you earned during the year.

As a general guideline, you are required to file if your income exceeds your available standard deduction — $15,750 for single filers in 2025. Importantly, for dependents, the standard deduction is limited to the greater of $1,350 or your earned income plus $450 (2025). If your income exceeds that amount, you will likely need to file a return.

It is also important to pay attention to the type of income you have. Because gig or freelance income is subject to self-employment tax, you may need to file even if your income is relatively low. Filing can be in your interest, even it is not required. For example, if federal income taxes were withheld from your paycheck, filing a return is the only way to receive a refund. 

Q: How has the rise of gig work, freelancing and digital platforms changed the way young people need to think about reporting income? 

A: The biggest shift is that you may no longer receive all of your income from a single employer issuing a W-2. Instead, you might earn money from multiple sources — such as freelance work, online sales or content creation — often reported on Form 1099s or, in some cases, not formally reported at all.

That means you need to think more broadly about your income. A helpful approach is to consider the main categories: wages (W-2), self-employment or gig income, investment income, scholarships and even gambling winnings. If you received income from any of these sources, it may need to be reported.

Another important difference is withholding. When you earn wages from an employer, taxes are typically withheld throughout the year. But for most other types of income, no taxes are withheld. That means you are responsible for paying those taxes yourself, often through quarterly estimated payments. If you wait until you file your return in April, you may face a large balance due and potentially penalties. As a result, you need to be more proactive — setting aside money as you earn it, making timely estimated payments and keeping good records, especially if you have business-related expenses that can reduce your taxable income. 

Q: Are there key deductions or credits that students and young taxpayers often overlook, and how can they determine what they are eligible for? 

A: Most taxpayers — over 90% — claim the standard deduction, making itemized deductions less relevant for many students. Even so, there are still important opportunities to reduce taxable income.

If you have self-employment income, tracking and deducting ordinary and necessary business expenses is especially important. These deductions directly reduce your taxable income and can significantly lower your tax liability.

Education-related tax benefits are also commonly overlooked. Many families qualify for either the American Opportunity Tax Credit (AOTC) or the Lifetime Learning Credit (LLC). Form 1098-T provides key information about tuition and related amounts that can help you identify qualified education expenses, although you may need to review your own records to determine the full amount of eligible expenses. It is also important to remember that the credit is claimed by the taxpayer who claims the student as a dependent — typically a parent — not the student.

Finally, there are some newer above-the-line deductions introduced in recent legislation, such as those for certain tipped or overtime income. You can claim these deductions even if you take the standard deduction, but they apply in relatively limited situations and only reduce federal income tax — not payroll taxes.

Q: What should filers double-check before submitting their return to avoid delays, audits or penalties? 

A: A key concept to understand is that your tax return is matched against third-party information. Employers, financial institutions, universities, online gambling platforms and even certain credit card companies and payment apps all report information to the IRS, and the system automatically checks your return for consistency.

Because of this, you should make sure you have included information from all relevant documents — such as W-2s and any Form 1099s — and that the amounts you report match exactly. This includes income from sources that are easy to overlook, such as online betting winnings, activity on investing platforms (including crypto transactions) and payments received through digital or content platforms.  

You should also double-check basic information like your Social Security number, name and address, as errors here can delay processing. Finally, save a copy of your completed return in a secure location. After filing, you can use the IRS “Where’s My Refund?” tool to track your return and confirm everything has been processed.

Q: For those feeling overwhelmed or unsure, what practical advice would you give to help them approach Tax Day with more confidence and less stress?

A: Start with reliable, accessible resources. The IRS website offers a range of tools designed for different groups, including students and first-time filers. You can use the Interactive Tax Assistant to get answers to common questions.

You should also look into IRS Free File. If your adjusted gross income falls below a certain threshold, you may be able to file your return at no cost using trusted software providers.

Overall, it helps to approach the process with the right mindset. Filing taxes is a routine responsibility that people from all backgrounds manage each year, and it can also be a valuable opportunity to take stock of your financial situation and make a more deliberate plan for how you earn, spend and save going forward.