Personal Finance and Investing

Last edited Mon Mar 30, 2026, 07:55 PM - Edit history (2)

tax credit and child tax credit every year. She paid nothing in during the year -- no withholding, no estimated tax, she's self-employed (so no employer paid in anything). And that $thousands was left over after they deducted SS taxes from her refund (she did not pay in any SS taxes during the year either).

Also she got a big amount from the state (Minnesota)

I suspect her tax preparer was uhh, savvy, in maximizing her bounty.

The other young woman, self-employed was "off the books" completely, didn't file taxes.
Didn't get anything from federal or state
And no Social Security credit for working those years, so her eventual SS benefit will be not good (fortunately she does have some years when she was employed and SS taxes were paid via withholding).

Moral of the story - not having to file taxes does not mean it is in one's economic interest not to do so. And don't make this decision based on some worksheet or magazine article.