Unlock Hidden Tax Benefits by Filing Even When Not Required

Even if the IRS doesn’t require you to file a tax return, there are compelling reasons to do so. Many individuals may overlook substantial refundable tax credits and carryovers of tax benefits that filing could unlock, leading to significant financial advantages.

Here’s a quick overview of the income thresholds for the 2025 tax year:

2025 INDIVIDUAL INCOME TAX RETURN FILING THRESHOLDS

FILING STATUS

UNDER AGE 65

AGE 65 OR OLDER

Single

$15,750

$17,750

Head of Household

$23,625

$25,625

Married, Filing Jointly

$31,500 (if both spouses are under 65)

$33,100 (if one spouse is 65+)
$34,700 (if both are 65+)

Married, Filing Separately

$5 (any age)

$5 (any age)

Qualifying Surviving Spouse

$31,500

$33,100

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Additional Filing Considerations: You might need to file a return even if your income is below the standard threshold for situations like:

  • Net earnings from self-employment totaling $400 or more.

  • Liabilities for special taxes, including the Alternative Minimum Tax.

  • Receipt of advance payments for the Premium Tax Credit.

  • Income from a religious organization exceeding $108.28.

  • Uncollected Social Security or Medicare taxes.

  • Household employment tax liabilities.

  • Distributions from a Health Savings Account (HSA).

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Dependent Filing Requirements:

  • Unearned income exceeding $1,350.

  • Earned income over $15,750.

  • Gross income higher than the greater amount of $1,350 or earned income plus $450.

Potential Benefits of Filing: Not filing could mean missing out on substantial refunds. Here’s a glimpse of benefits you might miss:

  • Tax Withholding Refunds – Federal tax withheld on wages might be refunded if no return is required.

  • Earned Income Tax Credit (EITC) – Designed for low- to moderate-income workers, the EITC can end in refunds up to $8,046 in 2025. As a fully refundable credit, you can receive the full amount even without tax liability.

  • Child Tax Credit (CTC) - Treats each child under 17 as eligible for a $2,200 credit, with a refundable limit of up to $1,700.

  • American Opportunity Tax Credit (AOTC) – Offers up to $2,500 per eligible student in higher education expenses, with 40% refundable.

  • Premium Tax Credit - Reduces the cost of Marketplace health insurance premiums.

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Carrying Forward Deductions: Certain deductions require you to file to preserve carryforwards for future use:

  1. Net Operating Losses (NOLs): Can be applied against future income for up to 20 years.

  2. Charitable Contributions: Excess contributions can be spread out over five years.

  3. Passive Activity Losses: Offset future passive income.

  4. Capital Losses: Carry over excesses to future years.

Additional Benefits:

  1. State Program Eligibility: Federal filings can influence eligibility for state benefits.

  2. Financial Planning: Creating a consistent history of filed returns aids in securing loans or financial aid.

  3. Identity Protection: Filing prevents fraudulent claims to your tax identity.

Filing a tax return even when not required could secure refunds worth thousands. The IRS notes about 25% of eligible individuals miss the EITC. Don’t let potential refunds slip by due to non-filing requirements. Contact us to explore if filing benefits you, including for previous years.

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Our team is standing by to help!
Reach out now
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