Should I Pay Irs Again Even if I Already Paid
Filling out tax forms is a pain in the y'all-know-what. So why on world would anyone file a revenue enhancement render if they don't have to? Well, actually, there's one very important reason why – y'all might get a big, fatty tax refund cheque in the mail.
People with income under a sure amount (meet table below) aren't required to file a tax render considering they won't owe any tax. But if you authorize for sure tax credits or already paid some federal income tax, Uncle Sam might owe you lot a refund that y'all can only go by filing a render. Think about that for a minute!
If you desire to know more, here are 11 reasons why you might desire to file a tax render fifty-fifty if you don't accept to. Although dealing with taxes tin can be a real elevate, information technology'south probably worth information technology if you lot wind up with a much fatter wallet in the end. (Annotation that the IRS won't penalize you for filing a late return if you're getting a refund.)
Who Has to File a Tax Return?
Hither are the federal tax return filing requirements for the 2022 tax year:
| Filing Status and Age at End of 2021 | Filing Required If Income is At To the lowest degree |
|---|---|
| Single; Under 65 | $12,550 |
| Single; 65 or Older | $14,250 |
| Married Filing Jointly; Both Spouses Under 65 | $25,100 |
| Married Filing Jointly; One Spouse 65 or Older | $26,450 |
| Married Filing Jointly; Both Spouses 65 or Older | $27,800 |
| Married Filing Separately; Whatever Historic period | $v |
| Head of Household; Under 65 | $18,800 |
| Head of Household; 65 or Older | $20,500 |
| Qualifying Widow(er); Under 65 | $25,100 |
| Qualifying Widow(er); 65 or Older | $26,450 |
Withheld Taxes
If an employer withheld federal income taxes from your paycheck last year, or taxes were withheld from other sources of income in 2021, you might exist entitled to a refund if you file a 2022 tax return. If you don't owe any taxation – and, therefore, aren't required to file a return – then it only makes sense that any taxes you already paid should be refunded to you lot. But you won't become that money back if y'all don't file a 1040 form.
You may also be entitled to a refund if too much Social Security or Tier i Railroad Retirement taxes were withheld from your 2022 paychecks. This could happen if yous had multiple employers for 2022 and full wages of more $142,800. If that's the case, you can claim a refundable tax credit on your 2022 return for the corporeality withheld in backlog of $8,853.threescore. (If a "refundable" credit is worth more than the income tax you owe, the IRS will result you lot a refund bank check for the deviation. With a "nonrefundable" credit, y'all don't get a refund because the taxation you owe isn't reduced below zero.)
If you lot had only i employer terminal year that withheld more than than $viii,853.threescore, you can't claim the credit. Instead, the employer should adapt the tax for you. If you tin can't get the employer to make an adjustment, y'all tin merits a refund using Form 843.
Taxes Paid
Withholding isn't the just way you could accept already paid taxes for 2022 to Uncle Sam. For example, if you received income every bit an independent contractor or were otherwise self-employed, you may accept made estimated taxation payments last year. If you lot filed a 2022 tax return, you may have applied your refund from that return to your 2022 taxes (it'south optional). If you lot're filing an extended return, you should have paid the amount of tax yous look to owe when y'all requested the extension with Form 4868.
If y'all paid 2022 taxes in advance in one of these three means, make certain you file a revenue enhancement render even if your overall income is below the applicative filing threshold amount. That will let you to get that money back.
Earned Income Tax Credit
The Earned Income Tax Credit (EITC) is for lower income working people. If you qualify for this refundable credit, then you definitely desire to file a tax return. For the 2022 tax year just, more workers without children qualify for the EITC. Plus, if your child doesn't have a Social Security number, you tin can now merits the EITC that's available to childless workers for 2022 and beyond. And so, even if y'all weren't eligible for the credit in previous years, make sure you check it out this year considering you may authorize now.
For 2022 tax returns, the maximum EITC ranges from $1,502 to $6,728 depending on your income and how many children you have. Then, it'due south well worth the time it takes to consummate a tax course if you lot qualify for the credit.
The income limits to qualify for the EITC are fairly low. For example, if y'all don't have kids, you can qualify if your 2022 earned income and adjusted gross income (AGI) are each less than $21,430 for singles and $27,380 for joint filers. If you have three or more children and are married, though, your 2022 earned income and AGI can be as high as $57,414. Plus, you tin use your earned income from 2022 to decide the EITC for the 2022 revenue enhancement year if it results in a higher credit corporeality. There are many exceptions and other rules, just the IRS has a handy online tool to help you lot figure out if you're eligible for the credit.
Child Tax Credit
There are a lot of temporary enhancements to the child tax credit for the 2022 revenue enhancement year (and just for the 2022 tax year). The credit amounts are higher, more children qualify, and it'south fully refundable on your 2022 tax return. Generally, parents with children 17 years sometime or younger may qualify for the 2022 child tax credit. The maximum credit amount is $3,000 for each child age 6 to 17, and $three,600 for each child 5 years old and younger. And then, like the EITC, you could terminate up with a nice refund check by filing a return simply to merits this credit.
However, if you received whatever monthly child tax credit payments from July to Dec last year, yous must subtract the total corporeality of those payments from the credit amount you're entitled to claim on your 2022 render. That's because those monthly payments were only advance payments of the 2022 credit. (Use our 2022 Child Taxation Credit Calculator to encounter how much you should accept received in monthly payments last year and how much you should have left to claim on your 2022 revenue enhancement return.) For all the details most the 2022 credit, see Child Tax Credit FAQs for Your 2022 Tax Render.
Non sure if you qualify for the credit? The IRS has an online tool to help with that. But note that you might be able to claim a different tax credit for your dependents if y'all don't qualify for the child tax credit. There's something called the "credit for other dependents," and it's worth upward to $500 for each qualifying dependent. Information technology'south a nonrefundable credit, though. So, it won't trigger a refund if you lot otherwise don't owe whatsoever tax.
Child and Dependent Care Credit
As with the child revenue enhancement credit, at that place were several enhancements fabricated to the kid and dependent intendance tax credit that only apply for the 2022 revenue enhancement year – including making the credit refundable for people who live in the U.S. for more than half of the year, which ways you definitely desire to file a 2022 tax return if yous qualify for the credit.
The credit helps people who work, are looking for work, or attending schoolhouse pay for the intendance of children under 13 or sure other people who can't care for themselves. In addition to being refundable, credit amounts will exist college and more people will qualify for the credit on their 2022 tax returns.
For the 2022 tax year, you lot're eligible for a 20% to 50% credit for upwards to $8,000 in care expenses for one child or other qualifying person or up to $sixteen,000 in expenses for 2 or more than. There are income limits, though. Yous're eligible for the full credit if your AGI doesn't exceed $125,000. The percentage is gradually reduced from fifty% to 20% if your AGI is between $125,001 and $183,000. It stays at 20% if your AGI is from $183,001 to $400,000, simply then it'south gradually reduced again from 20% to 0% if your AGI is between $400,001 and $438,000. You tin can't claim the credit if you make over $438,000.
For more information on the 2022 credit, see Your Child Intendance Tax Credit May Be Bigger on Your 2022 Tax Render.
Recovery Rebate Credit
If y'all didn't get a third stimulus check, or you didn't get the full corporeality, you lot may be able to get paid now by challenge the recovery rebate credit on your 2022 revenue enhancement return. The third-circular stimulus checks (including "plus-upwards" payments) were actually simply advance payments of the credit. And then, if you didn't get the coin earlier, you should get it at present (assuming y'all're eligible).
You're more often than not eligible to claim the recovery rebate credit on your 2022 return if, in 2021, you:
- Were a U.S. citizen or U.S. resident alien;
- Tin can't be claimed as a dependent on another person'south revenue enhancement return; and
- Accept a Social Security number valid for employment that's issued before the due date of your 2022 tax return (including extensions).
Calculation of the recovery rebate credit is more often than not the aforementioned as the calculation for the third circular of stimulus checks, except that the credit is based on data from different sources. The third-round stimulus checks were typically based on data from either your 2022 or 2022 taxation return, whichever was about recently filed when the IRS began processing your payment (utilize Kiplinger'southward 3rd Stimulus Cheque Calculator to see how much you should have gotten). Yet, the amount of your recovery rebate credit is based on information plant on your 2022 taxation return. For more information, see What'due south the Recovery Rebate Credit?
American Opportunity Tax Credit
The American Opportunity credit covers expenses for students who are in their showtime four years of college. The credit is worth upward to $two,500 per eligible student, and it tin can be claimed past a parent, spouse or student who is not claimed as a dependent for tuition, fees, or textbooks.
The credit is partially refundable. So, if the credit is worth more than your tax liability for the year, you'll get a refund check for 40% of the remaining amount – upwardly $ane,000 for each qualifying student. That should be enough to become you to complete a revenue enhancement return if you don't otherwise have to file 1.
Every bit with the EITC and child tax credit, the IRS has an online tool to help y'all figure out if you're eligible for the American Opportunity credit. It volition besides help y'all make up one's mind if you can merits the not-refundable Lifetime Learning credit, which is bachelor for an unlimited number of years.
Premium Tax Credit
The premium revenue enhancement credit helps people pay for insurance they buy through the wellness insurance marketplace (i.e., Obamacare). Unremarkably, the credit is available for people with household incomes ranging from 100% to 400% of the federal poverty level. Still, for the 2022 and 2022 revenue enhancement years, people with a household income that exceeds 400% of the federal poverty line for their family size may nonetheless claim the credit. The amount of the premium tax credit is based on a sliding scale, then that people with a lower income become a larger credit.
An estimated credit is calculated when you proceed a marketplace website such equally healthcare.gov to buy insurance. At that indicate, yous can cull to have the credit paid in advance directly to the insurance company to lower your monthly payments, or you lot can choose to get all the benefit of the credit when yous file your taxation render for the year. If you lot elect to have advance premium tax credit (APTC) payments fabricated to the insurer, you must file a tax return and reconcile the amount paid in advance with the actual credit you compute when you file your return. Either way, yous'll need to complete Class 8962 and attach it to your taxation render.
The premium tax credit is another refundable credit. So, if the amount of the credit is more than the corporeality of the taxation you owe, you'll receive the difference as a refund if you file a tax return. If y'all owe no tax, you tin can get the full corporeality of the credit as a refund. Notwithstanding, if your actual allowable credit is less than your APTC payments, the difference is usually subtracted from your refund or added to the revenue enhancement you owe.
Be warned, though, that the IRS typically looks for people who receive advance credits and either don't file returns or file returns incorrectly reporting the credit. So, monkeying around with the premium taxation credit is a good way to go your return audited.
Wellness Coverage Tax Credit
The health coverage revenue enhancement credit helps certain displaced workers and pre-retirees pay for wellness insurance. Specifically, information technology is available to (1) people eligible for Merchandise Adjustment Assistance allowances considering of a qualifying job loss, and (2) people between 55 and 64 years old whose pension plans were taken over by the Alimony Benefit Guaranty Corporation. The credit is worth upward to 72.five% of payments for qualified health insurance coverage.
As with the other credits we've mentioned, the health coverage credit is refundable. Then, if you can merits the credit, you'll desire to file a tax return just to merits the credit, even if you're not required to file a render. By doing so, yous tin get a federal income tax refund cheque sent to you lot.
As with the premiums taxation credit, the health coverage credit tin exist paid in accelerate. If y'all received advance payments terminal year, you lot must file a 2022 tax return. That besides ways that your refund will be smaller (or eliminated) if the advance credit payments are greater than your actual commanded credit.
Too note that the health coverage credit expired at the stop of 2021, so you won't be able to claim it adjacent twelvemonth when you lot file your 2022 taxation return.
Credits for Sick and Family unit Leave
Many employers provided paid sick and family leave in 2022 for workers affected by COVID-19. However, to shift nigh of the financial burden for paid leave off the employer'south dorsum, tax credits were too made available to reimburse employers for some of the cost of leave taken through September 30, 2021. Self-employed people who couldn't work because of certain COVID-related circumstances got similar refundable tax credits, too.
The credits are generally equivalent to the corporeality of qualified sick or family leave wages the cocky-employed person would have received if he or she were an employee. To be eligible for the 2022 self-employment credits, yous must take regularly carried on a trade or business during the year and been eligible to receive ill or family leave wages if you had been an employee of an employer (other than yourself). The sick and family get out credits are different depending on whether the leave was taken before or after April 1, 2021. Complete Grade 7202 to calculate the credit amounts.
People who paid household employment taxes might likewise exist able to merits refundable credits for a portion of any ill or family unit leave wages they paid that were related to COVID-19. The 2022 credit amounts are shown on Schedule H, Lines 8e and 8f.
As with the other refundable credits discussed, the credits for ill and family leave can lower your taxation nib or even result in a tax refund. And so, make sure you claim them even if you aren't required to file a 2022 tax return.
Credit for Federal Fuel Taxes
The federal government taxes well-nigh fuel purchases (due east.g., 18.4¢ per gallon tax on gasoline). But some people can claim a credit on their tax return if they burn the fuel during certain non-taxable activities. This credit is typically claimed past businesses, but some individuals tin can claim information technology too if they qualify. For instance, farmers and fishermen can merits the credit if they're the ultimate purchaser of gasoline used on a farm for farming purposes or in a gunkhole engaged in commercial fishing.
The credit is refundable, so you'll certainly desire to file a tax render if you qualify for the credit. You must fill out Form 4136 to calculate the credit amount, and then attached the grade to your return.
Source: https://www.kiplinger.com/taxes/tax-filing/601011/reasons-to-file-tax-return-even-if-you-do-not-have-to
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