Tax season is in full swing! If you haven’t started working on your 2021 tax return, you should do so as soon as you can—the tax filing deadline is coming up on April 18th.
You may actually be wondering if you need to file a 2021 tax return. If you are under 65 and filing single or married filing separately, your 2021 income did not reach $12,550, and you don’t owe any special taxes, then you are not required to file a tax return. For those who file as head of household, that income level is $18,000 and for those who are married filing jointly, it is $25,100.
Now, even if you don’t have to, it is still not a bad idea to file. The main reason you may want to file is because you could be eligible for a tax refund. The IRS does not automatically send out tax refunds; a tax return must be filed in order to receive any refund that is due to you.
Here are a few other reasons why you might want to file:
- If you paid estimated tax payments.
- If you qualify for any type of credits. Including:
- Earned Income Tax Credit
- Additional Child Tax Credit
- American Opportunity Education Credit
- Health Coverage Tax Credit
We also saw in 2020 and 2021 that the federal government has used recent tax returns to determine eligibility for immediate economic impact (or stimulus) payments. In the end, even if you don’t have to file a tax return, it could benefit you to do so.
Here at Ryder & Company, we can help you with your tax return, whether it’s simple, complex, or anywhere in between. We work with both individuals and businesses in Berks County and beyond. Don’t hesitate to reach out to arrange your tax preparation with our office—time is running out!
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