File a tax return / It’s tempting to think you don’t need to file a tax return if you didn’t make enough money to owe any tax. However, there are still good reasons to file your taxes every year, whether you owe money or not.
Filing Is Required By Law
First and foremost, the law requires you to file a return if your income exceeds a certain threshold. In the Philippines, you must file if your annual gross income exceeds Php 250,000.
Even if you didn’t make enough to ace any tax, not filing when required can lead to penalties, interest charges, and other problems with the Bureau of Internal Revenue (BIR).
Don’t skip out just because you think your tax bill will be zero.
You May Be Owed a Refund
If your employer withheld taxes from your paycheck, you could be due for a refund when you file your return. The only way to get that money back is to file.
The BIR won’t just send you a refund without a filed return showing you overpaid during the year. Don’t leave that money on the table if it rightfully belongs to you.
Claim Tax Benefits You’re Entitled To
There are tax benefits like deductions and credits you can claim by filing, which will reduce your taxable income and taxes owed.
For example, contributions to PhilHealth and Home Development Mutual Fund are deductible. Lower income Filipinos may also qualify for refundable tax credits. But you have to file a return to claim them.
Establish a Compliance Track Record
Regularly filing taxes builds a compliance record with the BIR. This can facilitate smoother tax situations for you down the road, compared to someone who skips years of filing. Establishing a history of compliance is just good practice.
Filing a Tax Return Is Fast and Easy
Modern e-filing makes submitting your simple return fast and efficient. The BIR website provides softwares for taxpayers to use. So there’s really no good excuse for not taking a few minutes to file a tax return, even if you don’t owe anything for the year. Stay compliant, establish a track record, and claim any refunds by filing.
Yes working taxes is very important. Even if you file with zero, you still have to do it every year, at least in my country
Your reminders have made it clear why it’s necessary. I appreciate knowing that filing establishes a compliance track record and could even result in a refund if taxes were withheld from our income.
This is a great article and important reminder! I’m actually going with my husband next week to get our taxes done with our accountant.
I’m actually going with my husband next week to get our taxes done with our accountant. Thanks for the timely reminder!
So very important to remember that we have to do our part of filing taxes diligently so there are no issues later
You are right. Filing an ITR helps in maintaining a record of your income and financial activities, even if you don’t have any tax liability. This documentation can be useful for various purposes, such as applying for loans, visas, or government benefits.
This is SO IMPORTANT! I have met so many people in my life who didn’t realize they had to file if they didn’t have income or owe.
Not only is it illegal not to file your taxes, but sometimes, you can actually get money back if you earn below a certain threshold.
Yes, you may receive a refund if at the end of the year. and only if you have paid taxes in advance on monthly or quarterly basis.
The biggest thing here is that even if you don’t make much money, you don’t know if you owe until you file. You always have to file!
Filing for taxes are a must in our household! I know it may be a headache for my husband, but he always gets the job done and we are always on time for our filing! Great post!
I do my kids taxes for them every year and hire an accountant for my own. Got to admit, it is annoying having to pay taxes when the money is never used wisely. And don’t even get me started on budget balancing! LOL You have some excellent points, I just wish I was on the receiving end of not owing or getting a refund!
Filing taxes can seem daunting, but your article breaks it down into manageable steps. Your emphasis on the importance of filing taxes, even if one doesn’t owe anything, is crucial information that many may overlook. It’s reassuring to have resources like your article to guide individuals through the process and alleviate any uncertainties they may have. Your clear and concise writing style makes the topic more approachable, which is invaluable when dealing with financial matters. Keep up the great work in providing valuable insights and advice to your readers!
Yes i’t so important! We just met with our accountant again the other day and have already begun discussing how to prepare for next years tax returns. They take so much time!!
I completely agree with the article. Even if you did not earn enough money to owe any taxes, it is still essential to file your tax return every year. Not only is it required by law, but it can also help you claim any refunds you may be owed and take advantage of any available tax benefits. Moreover, regularly filing taxes helps to establish a compliance track record with the Bureau of Internal Revenue, which can come in handy in the future.
Just finished our taxes this week! So grateful I have a good accountant!
Been filing taxes for a while now even though my client is AU based. Honestly, I’m just doing it to be a good citizen. 🙂
This is valuable information about filing your taxes even if you didn’t earn anything. It’s easy to forget that it’s mandatory no matter what!