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Certain individuals earn so little income that they are not legally required to file a federal tax return. Despite this, the Internal Revenue Service (IRS) strongly recommends that these individuals still consider filing.
Using the IRS Free File tool, you may uncover tax benefits that you’d otherwise miss out on, including refunds you didn’t know you were owed.
According to the IRS, “There’s no penalty for failure to file if a refund is due.” However, if you don’t file within three years of the original due date, the refund is forfeited to the U.S. Treasury. This means if you’re owed money and don’t file on time, you permanently lose that refund.
Why You Should File Even If You’re Not Obligated
Even if your income falls below the filing threshold, you might still qualify for valuable tax credits and refunds. Filing can serve as a financial boost, especially if you qualify for one or more of the following:
| Tax Benefit | Description |
|---|---|
| Child Tax Credit (CTC) | Provides financial support to families with qualifying children |
| Earned Income Tax Credit (EITC) | Designed to benefit low-to-moderate income earners, especially those with children |
| Federal Income Tax Withholding | If taxes were withheld from your paycheck, you may be eligible for a refund |
If you haven’t earned income or your income is extremely low, Free File helps you determine whether you’re eligible for these credits.
How to File a Late Tax Return With the IRS
If you missed the deadline in a previous year but are owed a refund, you can still file—but only within three years from the return’s due date. Here’s how:
1. Use the Correct Tax Year Form
You’ll need to locate and fill out the correct IRS form for the specific year you’re filing. Forms for past years are available on the IRS website.
2. Check Free File Eligibility
Before you begin, verify whether you qualify for the IRS Free File program. This can simplify the process and prevent errors.
3. Prepare Your Documents
Collect all necessary documentation, including income statements (like W-2s or 1099s) and any proof of expenses or credits. Inaccurate or incomplete filings can delay or invalidate your refund.
4. File Electronically and Choose Direct Deposit
For the fastest refund, file electronically and select direct deposit as your payment method. This is more secure and faster than paper checks, which can be lost or stolen.
5. Don’t Wait
You have a three-year window to file and claim your refund. After that, the funds go to the government, and you’ll no longer be able to claim them.
Even if you’re not required to file a tax return, doing so can uncover hidden refunds and missed tax credits—potentially putting thousands back in your pocket.
With tools like IRS Free File and electronic submission, filing is easier and more secure than ever. Don’t let time run out—you only have three years to claim money that’s rightfully yours.
FAQs
Is it mandatory to file taxes if I earn below the income threshold?
No, but filing can help you claim refunds and tax credits you might be entitled to, even with no income.
How long do I have to claim a tax refund?
You have up to three years from the original filing deadline. After that, your refund is no longer available.
Can I still file taxes for a previous year if I didn’t file back then?
Yes, you can file late using the correct year’s form, as long as it’s within the three-year deadline.