Why file an Income Tax Return if not required to?

Why file and income tax return if I don't have to?

If my total W2 income is lower than the amount required to file a return should I still file?

Here's some food for thought that might help you determine why you might want to consider filing:

Refunds: If you applied a refund from the prior year to cover current year tax liabilities, unless you file a return in the current year you cannot recoup that overpayment.
Making Work Pay Credit: In 2009 and 2010 certain taxpayers are eligible for a $400 (Single filer) or $800 (Joint filer) tax credit to offset withholding. If you don't file a return you cannot recoup this credit. American Opportunity Credit: If you pay tuition you may be able to receive a tax credit for tuition fees paid. The AOC replaced and improved the HOPE and Lifetime Learning credits by expanding the number of years of tuition applicable (from two to four), increasing the definition of qualified related expense category to include books and supplies necessary for attendance or enrollment not purchased directly from the institution. This new definition also increased the amount of the available tax credit from $700 to $2,500. A computer may now be a qualified expense, if it is necessary for enrollment or attendance at the institution.
Overpayments: Most of us have had federal and state income taxes withheld. Federal taxes withheld on our wages will be refundable if our gross taxable wage is less than the threshold amount. If you don't file a return you cannot get this refund.