Even if you don’t owe any taxes, you may qualify for tax credits that would result in a refund.
For example, the Earned Income Tax Credit (EITC) and Child Tax Credit both provide refundable tax credits. This means that, if the amount of a refundable tax credit is more than the amount of taxes due, the difference will be given back to you as a tax refund.
By not filing a tax return, an individual is missing out on the opportunity to receive “free money.”
We would like your feedback on this Personal Finance Frequently Asked Question.