Benefits of Filing a Return

Even though most people would rather not file their taxes when they don’t have to, if you do, you can take advantage of certain benefits such as tax credits to get you a refund. So, even if you are not required to file taxes, you can file to receive the following benefits.

A Refund

If you overpaid taxes in the last year, you may file a return this year to get a refund. Also, if you make estimated payments and overpaid or if your employer withheld too much in taxes in 2013, file a return to get a refund.

Earned Income Tax Credit (EITC)

This tax credit is offered to low to moderate income groups. If your earned income in 2013 is less than $51,567, you may be eligible to receive the EITC. You need to fulfill other eligibility criteria, but if you do, you can save up to $6,044 if you have qualifying children. To claim this credit, you need to file a return.

American Opportunity Tax Credit

If you are paying for the higher education of a student, you can claim this credit to reduce your tax liability. This credit can be claimed for up to $2,500 for each of the first four years of a student’s higher education. The American Opportunity Tax Credit cannot be claimed beyond the first four years of secondary education. Even if you owe no taxes and you claim this credit on your return, you can get a refund of up to $1,000 per student.

Health Coverage Tax Credit

If you received Trade Adjustment Assistance, Reemployment Trade Adjustment Assistance, Alternative Trade Adjustment Assistance or pension benefit payments from the Pension Benefit Guaranty Corporation, you can claim the Health Coverage Tax Credit. This credit pays 72.5 percent of qualified health insurance premiums, making it easier for you to get insurance.

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