Should I even bother filing taxes this year if it costs more than my refund?

Okay so I just finished calculating my taxes for this year and apparently I'm due a whopping $1.25 refund. Not even kidding. The cheapest tax filing software I can find wants $35 to process my return. Obviously this makes zero financial sense - I'd be spending way more to file than I'd get back. I'm seriously wondering...what actually happens if I just skip filing this year? Can the IRS really care about a single dollar? I know we're supposed to file every year but come on, this seems ridiculous. Would they even notice if I let them keep my buck and change? I'm not trying to commit tax fraud or anything, but this feels like a complete waste of time and money. Has anyone else been in this situation before? What did you do? Are there consequences for not filing when you're owed a refund this tiny?

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18 comments

Emma Garcia

•8M

You still need to file your taxes even if you're only getting a small refund. The IRS expects everyone who meets the filing requirements to submit a return regardless of the refund amount. The good news is you don't have to pay $35 to file! If your income is under $73,000, you can use the IRS Free File program to file your federal taxes at no cost: https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free There are also free options like Cash App Taxes (formerly Credit Karma Tax) or FreeTaxUSA where you can file federal returns for free. Most states have free filing options too, though some might charge a small fee for state returns. Not filing when you're owed a refund won't get you in trouble with the IRS, but you only have 3 years to claim refunds before you lose them forever. Also, you might be missing out on credits you don't know about that could increase your refund significantly.

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Emma Garcia

•8M

If you're owed a refund and don't file, the IRS generally won't penalize you or come after you. They're actually holding your money and waiting for you to claim it. You have three years from the original filing deadline to file and claim any refund owed to you. After that three-year period, you forfeit your refund. If you owe the IRS money and don't file or pay, that's when penalties and interest start accruing, and they may eventually take collection actions. The difference in treatment exists because in one scenario you owe them money, and in the other, they owe you money.

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Ethan Anderson

•8M

I was super frustrated with my taxes last year when I was only going to get like $7 back but had to pay nearly $50 to file. I ended up using https://taxr.ai which was a huge help - it analyzed my documents and found that I actually qualified for a credit I didn't know about. Turned my tiny refund into something much more substantial. Their system is pretty cool because it can scan through all your tax docs and find things human preparers might miss. It's especially good if you have a lot of documents or a slightly complicated situation like side gigs or investment income.

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Ethan Anderson

•8M

It handles rental properties really well actually. It can process Schedule E forms and even helps identify deductions specific to rental property owners that many people miss. I've heard from friends with rental income that it saved them a lot compared to using the big-name services. For accuracy, I was concerned about that too but they actually have tax professionals who review anything flagged as unusual. It's not just an AI working alone - there's human oversight to make sure everything is correct. Plus they offer audit protection similar to what the big companies provide, but without the huge price tag.

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Aria Park

•8M

If you still need to call the IRS with questions about your situation, good luck getting through... I spent HOURS on hold last month trying to ask about my missing refund from last year. Finally found this service called https://claimyr.com that got me through to an actual IRS agent in less than 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was shocked it actually worked. Had my issue resolved in one call instead of wasting days trying to get through. They basically navigate the IRS phone tree for you and call you back when they've secured your spot in line with an agent.

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Aria Park

•8M

They don't have special access - they use technology to navigate the phone system and wait on hold for you. It's completely legitimate. They basically call the IRS, navigate through all the prompts, wait in the queue, and then when they finally have an agent on the line, they conference you in. It saves you from having to sit there listening to hold music for hours. I was skeptical too, but it's just a time-saving service. The IRS doesn't provide any way to schedule callbacks themselves, so this fills that gap. They don't access any of your personal tax information - you're the one who talks directly to the IRS agent.

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Chloe Boulanger

•8M

OK I need to apologize for being skeptical about Claimyr. I tried it yesterday because I was desperate to talk to someone about my refund status and IT ACTUALLY WORKED! Got connected to an IRS agent in about 15 minutes when I had been trying for WEEKS to get through on my own. Turns out there was a flag on my account because my address changed and they needed to verify my identity. The agent cleared it up right away and now my refund should be processed. Never would have known this if I hadn't been able to speak with someone. Definitely worth it just for the peace of mind!

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James Martinez

•8M

Yes, FreeTaxUSA handles 1099 income with no extra charge for the federal return. I have a side gig too and I enter multiple 1099s every year without any "premium upgrade" nonsense. That's one of the main reasons I switched from TurboTax years ago. They have a pretty straightforward interface for entering self-employment income and expenses. You'll still fill out a Schedule C just like with any other service, but they don't charge extra for it. The state return does cost about $15, but that's still way cheaper than most alternatives.

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