Do You Need to File a Tax Return?
April 2nd, 2023
Most U.S. citizens – though, not everyone – need to file an income tax return each year. Here’s how to decide if you need to visit your local tax preparer this year!
Here's how to determine if you are required to file a tax return:
- Look at your income to see if you made the minimum required to file a tax return.
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Consider other reasons you may be required to file a tax return by using the Interactive Tax Assistant.
Even if you are not required to file a tax return, there may be benefits in doing so:
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Get money back. In some cases, you may get money back when you file your tax return. For example, if your employer withheld taxes from your paycheck, you qualify for the earned income tax credit, the additional child tax credit, or the American opportunity tax credit. For 2021 you may benefit from filing for the recovery rebate credit for missing stimulus check payments, or the refundable Child and Dependent Care Credit.
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Apply for financial aid. An accurate tax return can make it easier to apply for help with education expenses.
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Get an accurate picture of your income. When you apply for a loan, lenders will look at your tax return to figure out your interest rate and decide if you can repay.
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Get peace of mind. Some choose to file tax returns each year just for peace of mind.
If in doubt, contact a tax professional to avoid any potential penalties and interest charges for not filing.
Sources: Image by Louis Hansel
