Taxpayers who are not required to file a tax return may want to do so. They
might be eligible for a tax refund and don’t even know it. Some taxpayers might
qualify for a tax credit that can result in money in their pocket. Taxpayers
need to file a 2017 tax return to claim these credits.
Here is information about four tax credits that can mean a refund for
eligible taxpayers:
- Earned
Income Tax Credit. A taxpayer who worked and earned less than $53,930
last year could receive the EITC as a tax refund. They must qualify for
the credit, and may do so with or without a qualifying child. They may be
eligible for up to $6,318. Taxpayers can use the 2017 EITC
Assistant tool to find out if they qualify.
- Premium
Tax Credit.Taxpayers
who chose to have advance payments of the premium tax credit sent directly
to their insurer during 2017 must file a federal tax return to reconcile
any advance payments with the allowable premium tax credit. In addition,
taxpayers who enrolled in health insurance through the Health Insurance
Marketplace in 2017 and did not receive the benefit of advance credit
payments may be eligible to claim the premium tax credit when they file.
They can use the Interactive
Tax Assistant to see if they qualify for this credit.
- Additional
Child Tax Credit. If a taxpayer has at least one child that qualifies
for the Child
Tax Credit, they might be eligible for the ACTC. This credit is for
certain individuals who get less than the full amount of the child tax
credit.
- American
Opportunity Tax Credit. To claim the AOTC,
the taxpayer, their spouse or their dependent must have been a student who
was enrolled at least half time for one academic period. 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. They are required to have Form
1098-T, Tuition Statement, to be eligible for an education benefit.
Students receive this form from the school they attended. There are
exceptions for some students. Taxpayers should complete Form
8863, Education Credits, and file it with their tax return.
By law, the IRS is required to hold EITC and Additional Child Tax Credit
refunds until mid-February — even the portion not associated with the EITC or
ACTC. The IRS expects the earliest of these refunds to be available in
taxpayer bank accounts or debit cards starting February 27, 2018, if these
taxpayers choose direct deposit and there are no other issues with their tax
return.
Instructions for Forms 1040,
1040A
or 1040EZ
list income tax filing requirements. Taxpayers can also use the Interactive
Tax Assistant tool on IRS.gov to answer many tax questions. They should
look for “Do I need to file a return?” under general topics.
This tax tip covers information for tax year 2017 and is not affected by the
Tax Cuts and Jobs Act of 2017. Most of the changes in this legislation take
effect in 2018 and will affect the tax returns filed in 2019.
More Information:
- Publication
596, Earned Income Credit
- Schedule
8812 (Form 1040A or 1040), Child Tax Credit
- Publication
972, Child Tax Credit
- Publication
970, Tax Benefits for Education
- Education
Credits
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