Don’t lose money by not filing a tax return. In July, the IRS revealed that it had more than $1.5 billion in unclaimed refunds because 1.4 million people didn’t file their 2016 federal return. The average refund was around $861. Even if you aren’t required to file, there are a couple reasons to file a tax return. With ezTaxReturn’s step-by-step guidance, you can do your federal and state taxes in just 30 minutes.
What are the filing requirements for tax year 2020?
Exactly who needs to file a tax return depends on your age, income and filing status. If you earned more than the amounts depicted in the chart below, you are required to file a federal tax return.
| Filing status and age at the end of 2020 | Income required to file |
|---|---|
| Single under 65 | $12,400 |
| Single age 65 or older | $14,050 |
| Married filing jointly, both spouses under 65 | $24,800 |
| Married filing jointly, one spouse 65 or older | $26,100 |
| Married filing jointly, both spouses 65 or older | $27,400 |
| Married filing separately, any age | $5 |
| Head of household under 65 | $18,650 |
| Head of household age 65 or older | $20,300 |
| Qualifying widow(er) under 65 | $24,800 |
| Qualifying widow(er) age 65 or older | $26,100 |
Here are two reasons to file a tax return even if you don’t have to.
You may qualify for a refundable credit
The main reason to file a tax return is because there are several tax credits which can produce a refund if they reduce your tax liability below zero. You can receive a refundable credit for things like attending college, earning a low income, or having a child. Here are some popular ones you may be able to claim.
- The Earned Income Tax Credit can provide eligible workers with a much-needed financial boost. For tax year 2020, the credit is worth up $6,660, depending on the number of dependents you claim. Those without kids can qualify but the maximum they can receive is $538.
- Parents with children age 16 or younger may be able to claim the Child Tax Credit. It is worth up to $2,000 per child and up to $1,400 is refundable.
- If you’re currently paying for you, your spouse or dependent to attend college, you may be able to claim the American Opportunity Tax Credit. It is worth up to $2,500 per student and up to $1,000 is refundable.
You can get back the taxes that were deducted from your pay
If your employer withheld taxes from your pay, but you didn’t earn enough to file a tax return, you may be able to get your money back. The IRS won’t voluntarily issue you a refund though. You’ll need to file a tax return to get the cash. ezTaxReturn is the fastest and easiest way to do your taxes. Choose direct deposit and you’ll get your money as quick as possible.
