Protecting Your Rights And Your Future

Why file a tax return if you do not have to?

On Behalf of | Jan 18, 2022 | Tax Law

Tax filing season is here, and everywhere you go, you will hear people worrying and complaining as they struggle to get everything ready in time.

If you are not required to file a return, you might be inclined to gloat. Yet, by not filing, you could be missing out on some important financial opportunities, as well as some great conversational ones.

Filing a return can make you money

When you think about tax, you probably think about paying out money.  Yet, in some cases, you can recover money. If your employer pays your taxes for you, they may make estimations and overpay. Filing a return could help you get an accurate calculation and recover anything they overpaid.

You can reclaim against tax credits

Many people are eligible for a variety of tax credits. Taking the opportunity to file your taxes allows the IRS to tally things up and determine your final eligibility. If applicable, you can set these benefits against the taxes you are required to pay.

You can bring certainty to your tax situation

The one thing any taxpayer dreads is an IRS audit. If you never file a tax return, there is nothing to limit the time they have to come after you. Once you file a return, the IRS has a maximum of three or six years to do so, depending on specific circumstances. That can allow you to make future financial decisions with more certainty, without the constant worry that an audit could conclude you owe money from years ago.

To gain these benefits, you need to know how to file your taxes correctly. Consider legal advice to understand whether you should file, and if so, how to do it.