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The tax deadline is in the past now. However, not everyone has filed a 2016 tax return. There are many who filed an extension to give them more time to get their return in order. But, there are some that should have filed that just didn’t file a return at all. It’s not uncommon for those older, retired citizens and young adults that are new to the filing requirements, to think it’s not necessary to file a tax return. Although, there are good reasons why it would be helpful for them to file a return. For example;
* Tax credits. There are refundable or partially refundable tax credits, such as the earned income tax credit and the additional child tax credit, ACA
(proof of insurance) are only available if you file a tax return. Refundable credits are special because they come off the top of your tax bill and can even reduce it below zero. In that case you’d get the amount of the credit back in a refund check from the IRS.
* Financial aid. Many banks or colleges will ask to see your tax return information to help you qualify for loans or financial aid. Filing a tax return, even if you’re not required to, will help support your application.
* Withholdings. People who work but earn less than the required filing threshold should file a tax return so they can get back any withholdings their employer may have taken out of their paycheck. This usually happens because many taxpayers focus on the income threshold required to file a taxreturn and forget to look at their W-2 to see if money was taken out of their paycheck. The single individual filing threshold for 2016 is $10,350 and the married filing jointly threshold is $20,700.
* Identity protection. These there is a disturbing trend of identity thieves filing false returns to try to collect illicit refunds from the IRS. Often those who may not usually file a return are the target. Filing a return may shut down an attempt at fraud by identity thieves.
At Summit CPA we offer multiple resources to assist you with all of your tax and financial needs. Contact our office at 866-497-9761 to schedule an appointment with our advisors.
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