Not everyone needs to file a tax return, but you may be missing the chance to fatten your bank account if you don’t. Generally, you’re only required to file taxes if you earned $12,950 or more in 2022. However, it may be beneficial to file a tax return anyway because you may qualify for a refundable credit or be entitled to a tax refund. Here are some scenarios that can put extra cash in your wallet.
Who has to file a tax return?
Here are the 2022 federal tax filing requirements for most taxpayers:
You had income taxes withheld or made estimated tax payments
If you had federal taxes withheld from your pay, made estimated tax payments, or overpaid last year’s taxes and had it applied to 2022, you may be due a tax refund. Get your biggest possible refund by filing taxes online with ezTaxReturn. It’s so fast and easy that you can e-file your tax return in 30 minutes.
You may qualify for the Earned Income Tax Credit
Did you know that workers who don’t earn a lot of money can qualify for the Earned Income Tax Credit? It is worth a good chunk of change too. You can get up to $6,935 depending on your filing status and the number of children you claim on your return. Those without children can also qualify. Here are the income limits for tax year 2022.
Investment income limit: $10,300 or less
How much money can you get back?
See the maximum credit amounts below:
- No children: $560
- 1 child: $3,733
- 2 children: $6,164
- 3 or more children: $6,935
Aside from meeting the basic qualifying rules, you must be between the ages of 25 and 64, not claimed as a dependent on someone else’s return and lived in the U.S. more than six months.
You have children who are aged 16 or younger
Families with qualifying children can claim the Child Tax Credit. It is worth up to $2,000 for each child aged 16 or younger at the end of 2022. Up to $1,500 is refundable. That means that if the tax credit is more than your tax liability, you can get up to $1,500 back as a tax refund. But, you need to file a tax return to claim it. Do your taxes now at ezTaxReturn to see if you qualify.
You paid for college tuition
You may be eligible for the American Opportunity Tax Credit (AOTC) if you paid for college expenses for you, your spouse or your dependent. Eligible education expenses include tuition, student fees, books, supplies and course-related materials. The AOTC is worth up to $2,500. It is partially refundable so you can receive up to $1,000 (or 40% of the total credit) back as a tax refund. Students usually receive Form 1098-T from their school to help calculate their education tax credit.
You qualify for the Premium Tax Credit
The Premium Tax Credit is a refundable tax credit that makes purchasing coverage through the Health Insurance Marketplace more affordable. It is available to individuals and families whose income falls between 100% and 400% of the federal poverty line. The amount of your Premium Tax Credit depends on your family size and household income. You have the option of using some or all the tax credit in advance to reduce your monthly insurance premiums. If you use less than the tax credit amount you qualify for, you’ll get the difference as a tax refund when you file your taxes. On the other hand, if you use more than allowed, you must repay the difference.