Meet Sarah. She’s a designer who was employed for a short period last year and made $8,000, well below her filing requirement. Her friend told her to skip filing since she doesn’t owe anything. But Sarah’s missing out. Here’s why filing can be smart even when it’s optional:
💰 You might get money back.
If you had taxes withheld from your paycheck or made estimated payments, filing is the only way to get a refund.
Refundable credits like the Earned Income Tax Credit could also put cash in your pocket.
📄 You’re building a paper trail.
Need to apply for a loan, rent an apartment, or prove income for benefits?
Tax returns are often required documentation.
🚀 You’re starting the clock.
Filing starts the IRS’s 3-year audit window.
No return? No limit on how far back they can look.
✅ You’re protecting future benefits.
Self-employed? Even small amounts of income can earn you Social Security credits, up to 4 per year.
You need 40 total credits to qualify for retirement benefits.
🎯 You’re staying ahead.
Starting a business next year? Having prior returns makes things smoother and can help with business loans or lines of credit.
Bottom Line: Not required doesn’t mean not worth it. Filing when you don’t have to can save you headaches down the road and might even put money back in your pocket.
…and remember, pretty much every tax situation is unique. ‘But my friend… this or that’ may not necessarily be the answer for you.
🤝 Need Help? Whether you’re required to file or choose to file voluntarily, our team of experienced tax professionals can help you navigate the process and ensure you’re not leaving money on the table.
