Most people breathe a sigh of relief when they are not required to file income taxes. Filing taxes and visiting the dentist are two things most people would rather avoid. However, just like visiting the dentist, it may be in your best interest to file your taxes whether you are required to or not.
Why File Taxes?
Why in the world would anybody want to file taxes even if they don’t have to? There several good reasons to file. Bottom line, by not filing you may be leaving some of your hard earned money (or deductions) on the table. Here are a few things you need to know:
- You might be owed money. Even if you didn’t earn enough to qualify for having to file federal income taxes, your employer may have taken deductions from your earnings that should be returned to you. The only way to claim those funds is to file your Federal tax returns.
- Child tax credit. If for some reason you didn’t receive the full child tax credit, you can claim the remainder of the credit on your tax returns.
- Tax credit on earned income. Although you didn’t earn a lot of, you may still be entitled to the earned income tax credit (EITC). The tax credit is a refundable credit that can only be refunded if you file your taxes.
- Child adoption tax deductions. If you adopted a child during the tax year, you may be entitled deduct qualified child adoption expenses.
Those are just a few reasons why you should file your taxes even if you’re not required to. For more reasons for filing, visit the IRS website.
If you’re unsure as to whether or not you are required to file your federal income taxes, download IRS publication 501. It provides detailed information on who is required or not required to file income taxes.