If a taxpayer is not required to file a tax return, what should you do if uncertain about their benefits from filing?

When a taxpayer is not required to file a tax return and there is uncertainty about the potential benefits of filing, beginning a return to assess possible benefits is a prudent approach. This is because filing can sometimes lead to benefits such as refunds from withheld taxes, eligibility for tax credits, or even the ability to claim certain deductions that could result in a net gain for the taxpayer. By starting the return, you can uncover any available credits, such as the Earned Income Tax Credit or education credits, which the taxpayer may not be aware they are eligible for.

Engaging in this process provides a clearer picture of the financial implications for the taxpayer, offering them informed guidance about whether filing might be in their best interest. It allows the tax preparer to analyze the taxpayer's specific situation more thoroughly and to provide tailored advice based on the outcomes observed in the return preparation. This hands-on approach can lead to better financial outcomes for the taxpayer than simply advising them not to file, redirecting them to a professional without providing immediate personal insight, or suggesting they just hold onto paperwork without taking any action.