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Believe it or not, many people don’t have enough income after tax deductions to owe federal income taxes.
The Tax Cuts and Job Act of 2017 roughly doubled the standard deduction amounts, not to mention that those amounts increase regularly to account for inflation, and taxpayers who make less than their standard deduction typically don’t owe taxes.
According to recent analysis by the Tax Policy Center, 40% of households are expected to owe no taxes for the 2022 tax year — the one for which returns are due this spring.
However, just because you don’t owe taxes doesn’t necessarily mean you shouldn’t file a tax return. There are several situations in which it literally pays to file a return anyway.
Read on for a look at some of the most common reasons why someone who owes no taxes could benefit from filing a federal income tax return.
How to tell if you are required to file
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Now that you know many households don’t owe federal income taxes, you might be wondering how to tell if you do.
Whether the IRS requires you to file a return depends on a few factors, including your income, tax-filing status and eligibility for certain tax breaks. Check out the IRS’ 2022 Filing Requirements Chart for Most Taxpayers to get a rough idea,…
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