Income below filing threshold but own real estate. Should I file?

Ashtabul20a

My income for the year was below the requirement to file but I have real estate deductions for the year. Does it behoove me to file? Can I take these interest deductions if I have no tax bill from which to deduct?

SamanthaY

People may want to file even if they make less than the filing threshold, because they may get money back. This could apply to them if they:

• Have had federal income tax withheld from their pay
   
• Made estimated tax payments
   
• Qualify to claim tax credits like:
  • Earned income tax credit
  • Child tax credit
  • American opportunity tax credit
  • Credit for federal tax on fuels
  • Premium tax credit
  • Health coverage tax credit
  • Credits for sick and family leave
  • Child and dependent care credit

If you have real estate deductions from the year, they will be entered as an itemized deduction. An Itemized deduction is only used to reduce the tax liability you have, not give you a bigger refund. If you do not have a tax liability, you are generally not required to file a return and do not need to include the real estate deductions.

The IRS has a great tool to help you determine if you're required to file a federal tax return or if you should file to receive a refund: https://www.irs.gov/help/ita/do-i-need-to-file-a-tax-return