PEOPLE MAY WANT TO FILE A TAX RETURN – EVEN IF THEY ARE NOT REQUIRED TO DO SO

Posting from the IRS & Filing Tips

money in a jar

Some people choose not to file a tax return because they aren’t legally required to file, but they could be missing out on refundable tax credits or an income tax refund. This could apply to someone if they:

  • Have had federal income tax withheld from their pay.
  • Made estimated tax payments.
  • Qualify to claim refundable tax credits.

Here are a few of the valuable tax credits eligible people can claim on a tax return

  • Earned Income Tax Credit – The EITC helps workers who earned $59,187 or less when they file their tax return. Taxpayers can use the EITC Assistant on IRS.gov to check their eligibility.
  • Child Tax Credit  Taxpayers can claim the Child Tax Credit if they have a qualifying child under the age of 18 and meet other qualifications.
  • Credit for Other Dependents – Taxpayers who do not qualify for the child tax credit may qualify for the Credit for Other Dependents. This includes people who have:
    • Dependent children who are age 18 or older at the end of 2022.
    • Parents or other qualifying individuals they support.
  • Education credits  Education expenses can add up fast, but there are two higher education credits to help. The American Opportunity Tax Credit is for qualified education expenses for the first four years of higher education. The Lifetime Learning Credit is for qualified tuition and related expenses paid for eligible students enrolled in an eligible educational institution.

The Interactive Tax Assistant can help people when they’re deciding whether to file

The Interactive Tax Assistant is a tool that provides answers to many common tax law questions based on an individual’s specific circumstances. It can help someone decide whether they should file a tax return and if they’re eligible for many common tax credits.

The tool keeps the taxpayer anonymous. The taxpayer’s information isn’t stored and is used by the assistant only to answer the taxpayer’s questions. The assistant will not share, store or use information in any other way, nor can it identify the individual using it. The system discards the information the user provides when they exit a topic.

Taxpayers can e-file to get their refunds faster

The fastest way people can get a refund is to e-file and select direct deposit. The IRS issues more than 9 out of 10 refunds for e-filed returns in fewer than 21 days.

Diane’s Musings

Excess Money
– Diane L. Drain

This is not a scam.

The IRS Interactive Tax Assistance can help you decide whether or not to file a return. Why not take advantage of this tool in order to see if there are available funds.

I agree that everyone should have a right to better their lives through education. Whether that education is free (as in some countries), or paid by the student is dictated by the policy of that country. Student loans are be not bad as such, but there must be tighter rules on the lending practices. The other side of that coin, the borrowers must be committed to repaying the taxpayers who loaned the funds.

I am not against forgiving loans that have been paid on for decades (this current policy is 20-25 years). That is enough time for the borrowers to suffer. But this policy ignores the other player – that is the college that lent the taxpayer funds. What is being done to require the colleges qualify the borrowers before giving them taxpayer money? If that is not addressed, then this insanity will continue.

The bottom line – everyone involved in the student loan business (borrowers and lenders) must recognize their obligation to the taxpayers. If the loans are forgiven, then the taxpayers lose. If the colleges continue to be rewarded with high profits and no accountability, the taxpayers lose. If the borrowers continue to be rewarded with the confirmation that it was “free” money, the taxpayers lose. This cycle cannot continue.

712 words|3.7 min read|Categories: Bankruptcy Articles & Resources, Consumer Issues, Taxes|By |Published On: March 6th, 2023|Last Updated: September 4th, 2023|

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Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.

*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*

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