7 Smart Reasons to File a Tax Return Even if You Don’t Have To

The information in this article is up to date for tax year 2024 (returns filed in 2025).

Not everyone needs to file federal income tax returns, but you may be missing the chance to fatten your bank account if you don’t. Using guided tax preparation software like ezTaxReturn can make the process easy and safe. Generally, you’re only required to file taxes if you earned $14,600 or more in 2024. However, it may be beneficial to file a tax return anyway because you may qualify for a refundable credit or be entitled to a tax refund. Here are some scenarios that can put extra cash in your wallet.

Who Has to File a Tax Return?

Here are the 2024 federal tax filing requirements for most taxpayers:

For the 2024 tax year, the IRS mandates that individuals file a tax return if their gross income meets certain thresholds: $14,600 for single filers, $29,200 for joint filers, and $21,900 for head of household filers.

But income thresholds aren’t the only reason you might need to file. If you have self-employment income, unemployment income, or income from investments, you may also be required to file a tax return.

Reasons to File a Tax Return Even if You’re Not Required To

You Had Income Taxes Withheld

Even if you don’t meet the income thresholds, filing a tax return can still be beneficial. If you had income taxes withheld from your pay, you may be due a tax refund. Employers withhold federal taxes as an advance on your annual tax liability, but sometimes they withhold more than necessary. By filing, you can determine if you’re owed a tax refund. It also ensures compliance with IRS regulations and allows you to claim additional credits like the Earned Income Tax Credit or Child Tax Credit. Don’t miss out on potential refunds, use ezTaxReturn to file your taxes online. It’s so fast and easy that you can e-file your tax return in as little as 30 minutes.

You Made Estimated Tax Payments

If you made estimated tax payments throughout the year, it’s crucial to file a tax return to reconcile those payments with your actual tax liability. Estimated tax payments are typically made by self-employed individuals, freelancers, and those with significant income not subject to withholding, such as investment or rental income. Filing your tax return allows you to determine whether you’ve paid enough to cover your federal tax obligations or if you may owe additional taxes. Conversely, if you’ve overpaid, filing will ensure you receive a refund of the excess amount. By accurately reporting your income and payments, you can avoid potential penalties and interest charges.

You May Qualify for the Earned Income Tax Credit

Did you know that workers who don’t earn a lot of money can qualify for the Earned Income Tax Credit?  It is worth a good chunk of change too. You can get up to $7,830 depending on your filing status and the number of children you claim on your return.  Those without children can also qualify. Here are the income limits for tax year 2024.

Investment income limit: $11,600 or less

How much money can you get back?

See the maximum credit amounts below:

• No children: $632
• 1 child: $4,213
• 2 children: $6,960
• 3 or more children: $7,830

Aside from meeting the basic qualifying rules, you must be between the ages of 25 and 64, not claimed as a dependent on someone else’s return and lived in the U.S. more than six months.

You Have Eligible Children for the Child Tax Credit

Families with qualifying children can claim the Child Tax Credit.  It is worth up to $2,000 for each child aged 16 or younger at the end of 2024.  Up to $1,700 is refundable. That means that if the tax credit is more than your tax liability, you can get up to $1,700 back as a tax refund. But, you need to file a tax return to claim it. Do your taxes now at ezTaxReturn to see if you qualify.

You Paid for College Tuition

You may be eligible for the American Opportunity Tax Credit (AOTC) if you paid for college expenses for you, your spouse or your dependent. Eligible education expenses include tuition, student fees, books, supplies and course-related materials. The AOTC is worth up to $2,500. It is partially refundable so you can receive up to $1,000 (or 40% of the total credit) back as a tax refund. Students usually receive Form 1098-T from their school to help calculate their education tax credit.

You Qualify for the Premium Tax Credit

The Premium Tax Credit is a refundable tax credit that makes purchasing coverage through the Health Insurance Marketplace more affordable.  It is available to individuals and families whose income falls between 100% and 400% of the federal poverty line.  The amount of your Premium Tax Credit depends on your family size and household income.  You have the option of using some or all the tax credit in advance to reduce your monthly insurance premiums.  If you use less than the tax credit amount you qualify for, you’ll get the difference as a tax refund when you file your taxes.  On the other hand, if you use more than allowed, you must repay the difference.

You Could Qualify for the Child and Dependent Care Credit

Even if you’re not required to file a tax return, doing so could allow you to claim the Child and Dependent Care Credit. This credit is designed to help cover the costs of care for a qualifying child or dependent while you work or look for work. The credit can significantly reduce your tax liability, and in some cases, it might even result in a refund. To take advantage of this opportunity, ensure you file your tax return and provide the necessary documentation related to care expenses. Don’t miss out on this potential financial benefit!

Benefits of Filing a Tax Return

Filing a tax return offers numerous advantages, even if you’re not legally required to do so. Here are some key benefits:

1. Access to Tax Credits and Refunds: By filing a tax return, you can claim valuable tax credits such as the Earned Income Tax Credit and the Child Tax Credit. These credits can significantly reduce your tax liability and may even result in a refund. Filing ensures you don’t miss out on potential financial benefits.
2. Establish Financial Records: A consistent tax filing history helps establish a reliable financial record. This can be crucial when applying for loans, mortgages, or other forms of credit, as lenders often review your tax history to evaluate your financial responsibility.
3. Avoid Penalties and Interest: Filing a tax return, even when not required, helps you avoid potential penalties and interest on unpaid taxes. Staying compliant with IRS regulations ensures you remain in good standing and prevents unexpected financial burdens.
4. Eligibility for Future Benefits: Filing your taxes can make you eligible for various government benefits and programs in the future. Maintaining a clean tax record can be advantageous when you need to access these services.
5. Peace of Mind: Completing and filing your tax return provides peace of mind, knowing that you’ve fulfilled your tax obligations. It allows you to focus on other financial goals without the worry of potential tax issues.

Whether you’re filing to claim a refund, establish a financial history, or simply ensure compliance, using guided tax preparation software like ezTaxReturn can make the process fast and easy. Take advantage of these benefits by filing your tax return today!

The articles and content published on this blog are provided for informational purposes only. The information presented is not intended to be, and should not be taken as, legal, financial, or professional advice. Readers are advised to seek appropriate professional guidance and conduct their own due diligence before making any decisions based on the information provided.