LET’S discuss reasons why you should consider filing, even you are not required to:
1. You expect a refund. You have credits that can generate a refund – from taxes withheld from your paycheck, estimated tax payments, or a prior-year overpayments applied to this year.
2. You may qualify for Earned Income Tax Credit (EITC) if you worked, but did not earn a lot of money. EITC is a refundable tax credit; which means that you could qualify for a tax refund.
3. You may qualify for Child Tax Credit for each child through age 16. The dependent must be your child or stepchild with a valid social security number, and citizen or resident of the US.
4. You may qualify for Additional Child Tax Credit. This refundable credit may be available to you if you have at least one qualifying child and you did not get the full amount of the Child Tax Credit discussed above.
5. You may qualify for American Opportunity Credit (Hope Credit). The maximum credit per student is $2,500 for the first four years of postsecondary education.
6. You may qualify for Health Coverage Tax Credit. Certain individuals, who are receiving Trade Adjustment Assistance, Reemployment Trade Adjustment Assistance, or pension benefit payments from the Pension Benefit Guaranty Corporation, may be eligible for a Health Coverage Tax Credit worth 80 percent of monthly health insurance premiums when you file your 2011 tax return.
7. You get pestered with notices to file by the federal and state governments. It’s easier to just file than deal with notices that don’t seem to stop. It’s preferable to long waits for a live person when you call the IRS or state agencies.
8. You may need a tax return for non-tax purposes – immigration, loan or other issues.
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Victor Santos Sy, CPA, MBA, provides professional services in accounting and tax controversy including IRS audit defense and offers in compromise. He also advises clients on choices of entity including corporations for small businesses and LLCs for rentals. Vic worked with SyCip, Gorres, Velayo (SGV – Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation at 704 Mira Monte Place, Pasadena, CA 91101. The firm celebrates its 35th anniversary this year. You may email tax questions to Vic at [email protected]. You are welcome to visit our website for more than 300 tax tips at www.victorsycpa.com.
