Should I file return even if no tax due?

Question

Is there any advantage/disadvantage to filing a tax return if there is no tax due? Many years ago, I opened UTMA accounts for my three kids. (In hindsight, that was not the best thing to do.) Some years, their accounts earn enough to owe taxes. This year, two of them owe tax while the third does not. Since I have already completed the return, should I go ahead and file a return for the third child to "prove" to the IRS that there is no tax due? BTW - Thanks congress for upping the age from 14 to 18 for having to do the multiple calculations to determine if they pay at their rate or the parent's rate. My youngest turned

14 last year, so I thought I was about through with that hassle.

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Benjamin Yazersky CPA · Accepted Answer

read the 1040 instructions on who has to file a tax return you may need to file, even if you don't owe any tax then there may be state related filing requirements having said that, you may want to file anyway a. starts statute of limitations b. establishes tax liability for next year's safe harbor regarding estimated payments & there are various other reasons ps-the least you could do is write your congresscritter a thank u for extending the kiddee tax to age 18 ___________________________________

-----> real address on hobokeni or hobokenx

pleasedontemailme · Answer

I always tell clients that if you owe no tax this year and cannot foresee ever owing tax again (usually retirees) then don't file. If you owe no tax this year but reasonably expect to owe tax in the future, file. It will just save hassle in the long run.

-Crystal

Should I file return even if no tax due?

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