Do I Need to File My Taxes This Year?

Financial Horizons: Insights for Building Wealth and Securing Your Legacy

By Dr. Jose G. Cardenas, Chief Tax Strategist at The C & R Group, LLC

One of the most common questions I hear every tax season is simple—but surprisingly complex:

“Do I even need to file a tax return this year?”

For some people, the answer is clearly “yes.” For others—especially retirees, students, or people with very low income—the answer is “it depends.” And for many, even when a tax return is not strictly required, filing can still be highly beneficial.

Let’s walk through how to think about this decision so you’re not guessing when April comes around.

Filing Isn’t Just for “High Earners”

Filing taxes is not just for wealthy taxpayers. In fact, most people who have earned income (like wages, self-employment income, or business income) will need to file a return once they cross certain income thresholds.

The IRS looks at several factors to determine whether you must file:

• Your filing status (single, married filing jointly, head of household, etc.)
• Your age
• Your gross income (before deductions)
• The type of income you receive (wages, self-employment, Social Security, pension, etc.)
• Whether you can be claimed as a dependent on someone else’s return

Those thresholds change over time, which is why it’s important to get current guidance each year instead of relying on what you “remember” from the past.

The General Rule: Most Workers Need to File

If you’re working a job and receive a W-2, chances are you’ll need to file a tax return, especially if:

• Your income is above the filing threshold for your status, or
• Taxes were withheld from your paycheck and you want to see if you’re due a refund.

Even if your income is relatively low, filing is often the only way to:

• Get back any over-withheld tax, and
• Claim valuable tax credits (like the Earned Income Tax Credit or certain education credits) that may be refundable.

Skipping your return could mean leaving money with the IRS that actually belongs to you.

What If You’re Self-Employed?

If you’re self-employed, a freelancer, or operating a side hustle, the bar for filing is usually much lower.

Once your net earnings from self-employment reach a certain level (which is relatively modest), you typically must:

• File a tax return, and
• Pay self-employment tax (which covers your contributions to Social Security and Medicare).

Many people with online businesses, gig work, or side jobs mistakenly assume they don’t need to file because they “didn’t make that much.” But self-employment income has its own rules and often triggers a filing requirement even when you don’t have a traditional employer.

When You May Not Have to File

There are situations where filing may not be required. For example, some individuals whose only income comes from certain combinations of:

• Social Security benefits, and/or
• A relatively modest pension,
• And who have no significant other taxable income

may not be required to file a tax return under current IRS rules.

However, just because filing is not mandatory does not mean it’s always wise to skip it.

You might still want to file if:

• Taxes were withheld from a pension or other income and you may be due a refund
• You qualify for certain credits that require a filed return
• You want to establish a clear record of income for purposes such as loans, housing applications, or immigration-related matters

When in doubt, it’s worth checking with a tax professional rather than assuming you’re exempt.

The Hidden Benefits of Filing Even When You Don’t Have To

Sometimes, filing a return is less about obligation and more about opportunity. Even if you are technically below the filing threshold, submitting a return can:

1. Claim Refundable Credits
   Some credits, like the Earned Income Tax Credit or certain child-related credits, can result in a refund even if you owe no tax. These usually require a filed return.
2. Recover Withholding
   If a payer (employer, pension, or financial institution) withheld tax from your income, filing a return may be the only way to get that money back.
3. Create a Financial Paper Trail
   Tax returns often serve as vital documentation when:
   Applying for a mortgage or rental
   Seeking financial aid for education
   Working through estate or retirement planning
4. Protect Against Identity Fraud
   Filing your legitimate return early makes it harder for a fraudster to file a fake return under your Social Security number and claim a refund in your name.

Why April 15th Still Matters

For most individual taxpayers, the federal tax return is due around April 15th each year (or the next business day if that date falls on a weekend or holiday).

You can generally request an extension to file, which gives you more time to submit your paperwork—but it does not extend the time to pay any tax you owe. If you expect to owe, you should still make an estimated payment by the original deadline to avoid penalties and interest.

Whether you’re required to file or filing voluntarily for the benefits, treating April as a serious planning deadline helps you stay ahead of potential problems.

Signs You Should Definitely Talk to a Professional

It’s especially important to get personalized guidance if:

• You started or closed a business
• You have self-employment or gig income
• You began receiving Social Security or pension income this year
• You sold investments, real estate, or cryptocurrency
• You received a large distribution from a retirement account
• You moved states or had multiple jobs

In these situations, whether you need to file—and how you file—can have long-term tax consequences.

From “Do I Have To?” to “What’s Smart for Me?”

The real question isn’t just, “Am I required to file?”

A better question is:

“What decision—filing or not filing—best supports my financial life, my family, and my long-term goals?”

Sometimes you file because the law says you must. Other times you file because it’s simply smart strategy—to claim refunds, credits, or to maintain clean documentation.

Either way, understanding the rules gives you control instead of uncertainty.

Final Thoughts

Tax law can be confusing, and the answer to “Do I need to file this year?” depends on your unique mix of income, age, filing status, and life changes. But you don’t have to figure it out alone.

If you’re unsure where you stand—or you’re ready to move from last-minute guessing to proactive tax planning—professional guidance can give you clarity and confidence.

🔗 Read more at: www.thecrgroupllc.com/blog

📅 Book your consultation: Book a consultation with Dr. Cardenas

About the Author

Dr. Jose G. Cardenas is a retired U.S. Army Finance Officer and the Chief Tax Strategist at The C & R Group, LLC. With a Doctorate in Business Administration and over 20 years of experience in financial strategy and tax planning, Dr. Cardenas helps individuals and business owners protect their wealth and build a legacy. Learn more at www.thecrgroupllc.com

📌 Disclosure

This article is for educational and informational purposes only and is not intended to serve as personalized legal, tax, or investment advice. Tax laws and filing thresholds are complex and subject to change. You should consult with a qualified tax professional about your specific situation before making any decisions. Dr. Jose G. Cardenas, DBA, provides tax advisory services through The C & R Group, LLC. Insurance strategies, including Indexed Universal Life (IUL) and annuity products, may be offered through his role as a licensed financial professional affiliated with Experior Financial Group.

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