In the United States, many people are making a serious mistake by not taking this step with their taxes. The Social Security Administration (SSA) and the Internal Revenue Service (IRS) offer vital assistance that many families are unaware of, but if you don't act in time, you could lose money without knowing it.
The assistance offered by SSA and IRS: you can't ignore it for your own good
The SSA not only manages retirement and disability benefits, but also ensures you receive refundable credits in cash without having to pay. One example is the Earned Income Tax Credit (EITC), a credit for people with low or moderate income. According to SSA, to qualify for this credit you must file a return, even if you don't owe taxes.
Additionally, IRS emphasizes that refundable credits can give you money back even if you haven't paid taxes. That is, if your tax drops to zero, IRS gives you the rest of the credit.
This is why you should file your return even if you don't earn enough
There are several important reasons. First, if you worked and had taxes withheld, you'll only get that money back by filing a return. TurboTax mentions that even if you earn little, you can receive a full refund of what was withheld.
You can claim other assistance such as the Child Tax Credit or the Recovery Rebate Credit, which are also refundable. Many people don't know this and miss out on hundreds or thousands of dollars. IRS reminds that filing can be beneficial even if you're not required to, and an online tool lets you know if it's worth it, even without earning much.
What does IRS say about this?
IRS insists that many people would benefit from filing a return even without an obligation. On their website "Check if you need to file," they explain that filing allows you to claim refunds for withheld taxes. They make it clear: refundable credits generate a refund even if you owe nothing.
They also launched the Direct File program in 2024, a free and guided service. This option lets you file without paying firms, save time, and avoid losing up to $160 in fees, while making it easier to access refundable credits. In addition, the VITA program offers free professional help for filing taxes to people with low income, seniors, or people with disabilities.
This is what the U.S. government states
The government has strengthened its commitment so that no one misses out on claiming what they're entitled to. IRS keeps active campaigns to remind people that many forms of assistance aren't paid if you don't file a return.
The SSA ensures that refunds are excluded for 12 months from being considered as resources for benefits such as SSI. This way, receiving a refund doesn't affect essential benefits.
The serious mistake of not acting is losing hundreds or even thousands of dollars. Not filing a return can leave you without recovered withholdings, without credits for children or earned income. There are free options that make it much easier.