Money Map Tip of the Week

On January 24, 2026, in Latest News, by The Somerville Times

Q: How common is it for taxpayers to leave money on the table during tax season?

A: Very! Each year, billions of dollars go unclaimed—either because people don’t file a return or fail to claim credits or refunds owed to them. Here are five of the most significant ways this happens:

1. Not Filing a Tax Return

Each year, millions of eligible taxpayers miss out on money simply by not filing a return—often because they think they aren’t required to. But refunds are never issued automatically; to receive anything back, you must file.
This includes powerful refundable credits like the Earned Income Tax Credit (EITC)—now worth up to $8,046 for families with three or more children—even if no tax is owed.

2. Missing the Earned Income Tax Credit (EITC)
Millions of eligible workers don’t claim the EITC due to confusion over eligibility—especially part-time workers, single adults, or people with nontraditional family setups. This credit can be worth:
• Up to $4,328 (one child)
• Up to $7,152 (two children)
• Up to $8,046 (three or more children)

3. Not Claiming Education Credits
The American Opportunity Credit (up to $2,500) and Lifetime Learning Credit (up to $2,000) are often missed by adult learners, parents, or community college students unaware they qualify.

4. Forgetting to Claim Refunds from Prior Years
You have up to 3 years to file a return and claim a refund for missed credits. After that, the refund is lost permanently.

5. Skipping the Saver’s Credit
Taxpayers who contribute to retirement accounts (like a traditional IRA or 401(k)) and fall under certain income limits may qualify for a Saver’s Credit—worth up to $1,000 ($2,000 for couples)—but many don’t claim it.

Bottom line: Filing taxes isn’t just about paying—it’s also about getting money back. If you skipped filing in the past or weren’t sure you qualified for certain credits, it might be worth another look.

Any questions? I’m Vincent Hicks, a CPA based in the Cambridge–Somerville area. Reach out at vincent@hickscpasolutions.com or (859) 553-0788.

Disclaimer: This column provides general financial information and should not be considered legal, investment, or tax advice. Always consult a qualified professional for personal guidance.