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Tax filing offers several key benefits. It ensures compliance with the law, avoiding penalties or audits. Filing taxes can also provide opportunities for tax refunds, especially if you’ve overpaid through withholdings or eligible deductions. It can improve your credit score by demonstrating financial responsibility, which is important for loans or mortgages. Filing taxes on time also helps to establish a record of income, which can be useful for financial planning or securing government benefits. Additionally, it gives you access to tax credits, such as the Earned Income Tax Credit (EITC), potentially lowering your overall tax liability.
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