No Kids Doesn't Mean No Tax Refund: You Could Be Leaving Money on the Table

Every tax season, somebody hears some version of this:

“You don't have any kids. You ain't getting nothing back.”

And every year, somebody believes it.

At TaxCity Advisors, this is exactly why we encourage people to stop comparing their tax situation to their cousin's, coworker's, friend's, or somebody on the internet.

Their tax return is not your tax return.

Children Aren't the Only Piece of the Puzzle

Yes, having a qualifying child can affect certain tax credits. And yes, credits like the Earned Income Tax Credit and Child Tax Credit can have a major impact on a taxpayer's refund.

But those aren't the only numbers on a tax return.

If you worked a W-2 job, for example, you may have had federal income tax withheld from your paychecks throughout the year.

That's your money being paid toward your anticipated federal income tax liability.

When your tax return is actually prepared, we calculate your actual tax liability, applicable credits and payments, including federal income tax you've already had withheld.

If you've paid in more than you ultimately owe, that overpayment can result in a refund.

No children required.

Your Friend's Refund Doesn't Tell Us Anything About Yours

Two people can make similar salaries and end up with completely different tax results.

Why?

• Different withholding

• Different filing statuses

• Different deductions

• Different credits

• Different types of income

• Different life circumstances

Even the Earned Income Tax Credit isn't simply a “you have kids, so you get this amount” credit. Eligibility and the amount can depend on income, filing status, number of qualifying children and other requirements. Some taxpayers without qualifying children may even qualify for the Earned Income Credit.

That's why we don't prepare tax returns based on what happened to somebody you know.

We prepare them based on your numbers.

You Could Be Leaving Money on the Table

This is where bad tax advice can become expensive.

If you decide not to file because somebody convinced you that you “won't get anything back,” you could potentially be walking away from money you're entitled to claim.

And generally, there's a limited period to claim a refund from an older return. Wait too long, and money that could have been refunded to you may no longer be available.

So don't let somebody else's tax situation make financial decisions for you.

• You may owe

• You may break even

• You may be due a refund

But let's run your numbers before we decide.

That's what they're there for.

TaxCity Advisors

Tax Preparation • Bankruptcy Tax Compliance • Bookkeeping • Advisory

This article is for general educational purposes. Tax eligibility, credits and refund amounts depend on individual circumstances and the applicable tax year.