Is your only problem that the filter sticks out? If you don’t have a panel covering your filter it shouldn’t be a big deal. You can also measure how much extra is sticking out and minus that from the size you have installed. The arrow of the filter should follow the direction of the airflow. Stick a peice of paper in the filter area and see what way the air is blowing. From your picture it seems to be correct. Also, i assume that filter is not dirty and is a charcoal filter?

The filter looks too narrow (by 1-2 inches) and too long (by 3-4 inches). Just get a yardstick and measure the depth and width of the filter space. Google the model number of the furnace (its on a panel on the side or inside the removable panel) for the specs with the filter dimensions.

Thanks @Andrew. I showed the picture with filter sticking out because i wanted you to see the direction of air flow on the filter. filter goes all the way in. I was just curious where the exact filter size is mentioned. previous owner left a few filters so I am assuming they are of right size.

I am not sure if the filter is dirty because i installed it a couple of months ago but surprisingly there is a lot of dust in the house.

just make sure the filter fits snug. there should be little to no

gap on length or width. if u have a lot of dust, make sure you replace your filter very often or you run the chance on causing damage to your unit. If your unsure, just put a new one in.

The direction arrow on the filter indicates you have it so the air is flowing up. Is the furnace sitting on a box and the main return is on the other side of the wall on the right? You may have enough clearance to fit a 2 inch filter. That would stop air from being pulled in front of the filter. They are more expensive but won't need to change them as often.

Yes.

@mike_home thanks for your reply. Yes, the return vent is on the other side of the wall (not where the power switch and black pipe are but on the other side of the wall) I am currently using 14x25x1 filter.

filter looks neat but the house gets dusty in a few days. i will try the 2 inch filter and see how it works. it is not definitely snug.

There shouldn't be any gaps through which airflow can bypass the filter, which allows dust to collect on and clog the air conditioner cooling coil (if the system cools and heats).

Starting at 4:38 on the video shows the problem and a solution.