Should You File a 2016 Tax Return? 5 Tips to Help You Decide

Most Americans file a tax return because they are required to. Even if you don’t have to file, there are times you should anyway. You might be eligible for a tax refund and not realize it.

Here are five tips to help you decide whether to file a tax return:

1. General Filing Rules. In most cases, income, filing status and age determine if you have to file a tax return. Other rules may apply if you are self-employed or a dependent of another person. For example, if you are single and under age 65, you must file if your income was $10,350 or more. There are other instances when you must file. Go to IRS.gov/filing for more information.
2. Tax Withheld or Paid. Did your employer withhold federal income tax from your pay? Did you make estimated tax payments? Did you overpay last year and have it applied to this year’s tax? If your answer is “yes” to any of these questions, you could be owed a refund. You have to file a tax return to get it.
3. Earned Income Tax Credit. If you worked and earned less than $53,505 last year you could receive the EITC as a tax refund. You must qualify and may do so with or without a qualifying child. You may be eligible for up to $6,269. Use the 2016 EITC Assistant tool on the IRS website to find out. You must file a tax return to claim the EITC.
4. Additional Child Tax Credit. Do you have at least one child that qualifies for the Child Tax Credit? If you do not qualify for the full credit amount, you may still be eligible for the Additional Child Tax Credit. Beginning in January 2017, the IRS must hold refunds for any tax return claiming either the EITC or the Additional Child Tax Credit until Feb. 15. This means the entire refund, not just the part related to either credit.
5. American Opportunity Tax Credit. To claim the AOTC, you, your spouse or your dependent must have been a student enrolled at least half time for one academic period. The credit is available for four years of post-secondary education. It can be worth up to $2,500 per eligible student. Even if you don’t owe any taxes, you may still qualify.

Instructions for Forms 1040, 1040A or 1040EZ list income tax filing requirements. You can also use the Interactive Tax Assistant tool on the IRS website. Look for “Do I need to file a return?” under general topics.