You
are required to file a federal income tax return if your income is above a certain
level, which varies depending on your filing status, age and the type of income
you receive. However, the Internal Revenue Service reminds taxpayers that some
people should file even if they aren't required to because they may get a
refund if they had taxes withheld or they may qualify for refundable credits.
To
find out if you need to file, check the Individuals section of the Internal Revenue Service website
at IRS.GOV or consult the instructions for Form 1040,
1040A or 1040EZ for specific details that may help you determine if you need to
file a tax return with the IRS this year. You can also use the Interactive Tax
Assistant available on the IRS website. The ITA tool is a tax law resource that
takes you through a series of questions and provides you with responses to tax
law questions.
Even
if you don’t have to file for 2011, here are six reasons why you may want to:
1.
Federal Income Tax Withheld You should file to get money back if your employer withheld
federal income tax from your pay, you made estimated tax payments, or had a
prior year overpayment applied to this year’s tax.
2.
Earned Income Tax Credit
You may qualify for EITC if you worked, but did not earn a lot of money. EITC
is a refundable tax credit; which means you could qualify for a tax refund. To
get the credit you must file a return and claim it.
3.
Additional Child Tax Credit This refundable credit may be available if you have at
least one qualifying child and you did not get the full amount of the Child Tax
Credit.
4.
American Opportunity Credit Students in their first four years of postsecondary
education may qualify for as much as $2,500 through this credit. Forty percent
of the credit is refundable so even those who owe no tax can get up to $1,000
of the credit as cash back for each eligible student.
5.
Adoption Credit
You may be able to claim a refundable tax credit for qualified expenses you
paid to adopt an eligible child.
6.
Health Coverage Tax Credit Certain
individuals who are receiving Trade Adjustment Assistance, Reemployment Trade
Adjustment Assistance, Alternative Trade Adjustment Assistance or pension
benefit payments from the Pension Benefit Guaranty Corporation, may be eligible
for a 2011 Health Coverage Tax Credit.
Eligible
individuals can claim a significant portion of their payments made for
qualified health insurance premiums.
For
more information about filing requirements and your eligibility to receive tax
credits, visit IRS.GOV
