Did you know: you may not be required to file a tax return?
That’s right. For example, if you are single and under the age of 65, you may not need to file a tax return if you income was less than $10,300 in 2015. There are a few other factors to consider besides gross income, but the point is – you may be off the hook.
Except…
You may be qualified to receive certain refundable tax credits. And you can only get those if you file a tax return.
Here’s how it works.
We’ll take the Earned Income Tax Credit (EITC). There are a host of criteria for the EITC, but when it comes to income you only need to earn at least $1 over the course of the year. So, if you meet the criteria and have made $1, you may qualify to get money back from the government.
But with income of only $1 you aren’t required to file. It’s optional. In this case, it’s likely in your best interest. Filing your taxes may cost you a few hours of your time and a small tax preparation fee, but the refundable EITC credit makes it worthwhile. The Additional Child Tax Credit is also refundable.
Additionally, if you had health insurance through a state or federal Marketplace, you will want to file a tax return to potentially claim a Premium Tax Credit. If you have Marketplace health insurance and do not file a tax return, you may be disqualified from getting an Advance Premium Tax Credit in the future. So, even if you don’t typically meet the requirements for filing, it’s important to do so to ensure you have these credits toward your health insurance expenses.
