Most people file a tax return because they have to. Even if a taxpayer
doesn’t have to file, there are times they should. They may be eligible for a
tax refund and not know it.
Here are five tips on whether to file a tax return:
- General Filing
Rules.
In most cases, income, filing status and age determine if a taxpayer must
file a tax return. Other rules may apply if the taxpayer is self-employed
or a dependent of another person. For example, if a taxpayer is single and
under age 65, they must file if their income was at least $10,350. There
are other instances when a taxpayer must file. Go to IRS.gov/filing
for more information.
- Tax Withheld or
Paid.
Did the taxpayer’s employer withhold federal income tax from their pay?
Did the taxpayer make estimated tax payments? Did they overpay last year
and have it applied to this year’s tax? If the answer is “yes” to any of
these questions, they could be due a refund. They have to file a tax
return to get it.
- Earned Income Tax
Credit.
A taxpayer who worked and earned less than $53,505 last year could receive
the EITC as a tax refund. They must qualify and may do so with or without
a qualifying child. They may be eligible for up to $6,269. Use the 2016 EITC
Assistant tool on IRS.gov to find out. Taxpayers need to file a tax
return to claim the EITC.
- Additional Child Tax
Credit.
Did the taxpayer have at least one child that qualifies for the Child
Tax Credit? If they do not qualify for the full credit amount, they
may be eligible for the Additional Child Tax Credit. Beginning in January
2017, by law, the IRS must hold refunds for any tax return claiming either
the EITC
or the Additional Child Tax Credit until Feb. 15. This means the entire
refund, not just the part related to either credit.
- American Opportunity Tax
Credit.
To claim the AOTC,
the taxpayer, their spouse or their dependent must have been a student
enrolled at least half time for one academic period to qualify. The credit
is available for four years of post-secondary education. It can be worth
up to $2,500 per eligible student. Even if the taxpayer doesn’t owe any
taxes, they may still qualify. Complete Form
8863, Education Credits, and file it with the tax return. Learn more
by visiting the Education
Credits web page.
Instructions for Forms 1040,
1040A
or 1040EZ
list income tax filing requirements. Taxpayers can also use the Interactive
Tax Assistant tool on IRS.gov. They should look for “Do I need to file a
return?” under general topics. The tool is available 24/7 to answer many tax
questions.
All taxpayers should keep a copy of their tax return. Beginning in 2017,
taxpayers using a software product for the first time may need their Adjusted
Gross Income (AGI) amount from their prior-year tax return to verify their
identity. Taxpayers can learn more about how to verify their identity and
electronically sign tax returns at Validating
Your Electronically Filed Tax Return.
Additional IRS Resources:
- Schedule
8812 (Form 1040A or 1040), Child Tax Credit
- Publication
972, Child Tax Credit
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