Why Filing a Tax Return, Even When Not Required, Can Help You Maximize Your Refunds
The Internal Revenue Service (IRS) recommends that individuals consider filing a tax return, even if they are not required. Filing a tax return can help individuals receive certain tax credits and refunds they may be eligible for.
For example, individuals with earned income may be eligible for the Earned Income Tax Credit (EITC), which can provide a substantial refund. Additionally, individuals who have had federal income tax withheld from their paychecks may be able to receive a refund for the amount that was withheld.
Even if individuals are not required to file a tax return, they should still receive their Form W-2, Wage, and Tax Statement from their employer by January 31st. They can use the information on this form to determine if they are eligible for any tax credits or refunds.
Filing a tax return can also benefit individuals planning to apply for a loan or financial aid. Lenders and schools may require tax return information as part of the application process.
Take advantage of these valuable tax credits for eligible individuals:
- Earned Income Tax Credit: Helps workers make up to $59,187 when filing their tax returns. Check eligibility with the EITC Assistant on IRS.gov.
- Child Tax Credit: Claim if you have a qualifying child under 18 and meet other requirements.
- Credit for Other Dependents: For those who don’t qualify for the Child Tax Credit but have dependent children over 18 or support qualifying individuals.
- Education Credits: The American Opportunity Tax Credit and Lifetime Learning Credit can help with qualified education expenses for eligible students at eligible institutions.
It’s important to note that individuals who do not file a tax return may also miss out on other benefits, such as specific state tax credits or eligibility for Social Security or Medicare benefits.
In summary, while only some are required to file a tax return, it’s a good idea to consider filing one to take advantage of potential tax credits and refunds. It can also be beneficial for other purposes, such as a loan or financial aid application. Suppose individuals have questions about whether they should file a tax return. In that case, they should consult a tax professional or the IRS.
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