Posted on October 01 2020
Filing your returns can be a fair idea for number of reasons. Before you think of skipping this year returns, will it be worthwhile reading this one ahead?
If you have no income, you aren’t obliged to file. Also, last year, if you have earned income and if it comes under the Income Tax minimum then there is no question of filing your income tax return. The minimum however depends on certain specifics like your age and filing status etc. Individuals who fall below the minimum may still have to file a tax return under certain circumstances.
It’s evident that you don’t mind any Tax Refund. Well. Nobody does!
The Income Tax offers various tax credits that you can take directly off your taxes rather than your income. If the credit is more than you owe in taxes, in some cases, you can claim the excess credit as a refund. Eg: "first-time homebuyer credit" as examples; if you qualify for these credits, you can receive a refund even if you had no income and paid no taxes.
It is advisable that if you have deductions or credits carrying over, you can't claim them if you have no income, but you need to file your taxes to claim them in a future year when you do have income. So File now, deduct later
If you've reported your information accurately, in most cases the IRS can go back three years only. However, this time period clock only begins for a given year when you actually file your tax return. The problem of not filing here is the IRS can come back an audit you any day.
This is why we at Tax Assist, recommend that file your returns. And even if you don't file, please keep any relevant financial records indefinitely and certainly. Protect yourself from future audits.
Your email adddress will not be published. Required fields are marked