Do I need to file taxes if I have no income?
Yes, even if you don’t have any income, you may still need to file a tax return. Here are some of the main reasons someone with no income would still need to file:
- To get a refund of any taxes withheld from unemployment benefits, pensions, or Social Security benefits
- To claim tax credits like the Earned Income Tax Credit or Child Tax Credit
- To qualify for government assistance programs like Medicaid or college financial aid
- To establish your tax history if you plan to start working
The IRS generally requires filing a return if your gross income exceeds the standard deduction and personal exemption amounts for your filing status. For 2022 taxes, those amounts are:
| Filing Status | Standard Deduction | Personal Exemption | Total |
|---|---|---|---|
| Single | $12,950 | $0 | $12,950 |
| Married Filing Jointly | $25,900 | $0 | $25,900 |
| Head of Household | $19,400 | $0 | $19,400 |
So if your gross income is below the standard deduction amount for your filing status, you generally don’t need to file. However, you should still file if any of the situations above apply.
How do I file a tax return with no income?
Here are the steps to file a tax return when you have no income:
- Gather any tax documents you have
- Fill out Form 1040
- Claim any tax credits or deductions
- Report any income, if applicable
- Sign and mail the return
Let’s go through each of these steps in more detail:
1. Gather any tax documents you have
Even with no income, you may have received some tax documents for the year that are required for filing. These could include:
- Form W-2 (for any small part-time jobs)
- Unemployment compensation statements
- 1099 forms (for interest, dividends, retirement payments, etc)
- Health coverage exemption certificates (Forms 1095-A, 1095-B or 1095-C)
- College financial aid documents
- Records of any other income received
Having these documents handy will make filing your taxes easier.
2. Fill out Form 1040
The main tax form you’ll use to file with no income is IRS Form 1040. On the 1040, you’ll report your filing status, personal exemption, any income you received, and any tax credits or deductions you claim.
Be sure to fill out all required fields and forms associated with the 1040, like Schedule EIC if claiming the Earned Income Tax Credit. The 1040 instructions provide guidance on what sections need to be completed.
3. Claim any tax credits or deductions
The key tax benefits for those with no income include:
- Standard deduction – This reduces your taxable income by $12,950 for single filers or $25,900 for joint returns in 2022.
- Earned Income Tax Credit – This provides a refundable tax credit up to $6,935 for low earners in 2022.
- Child Tax Credit – Families can claim up to $2,000 per child under 17.
- Education credits – The American Opportunity and Lifetime Learning credits can reduce your tax liability.
Be sure to claim any of these tax benefits that you qualify for. The IRS requires you to file a return to get refundable credits like the Earned Income Credit.
4. Report any income, if applicable
For those with no job or wages, you’ll likely have $0 on most main income lines of the 1040 like:
- Line 1 (Wages, salaries, tips)
- Line 2b (Taxable interest)
- Line 3b (Ordinary dividends)
- Line 5 (Taxable refunds)
However, you may have some small amounts of income to report from things like interest, dividends, unemployment income, and retirement plan or Social Security payments. Be sure to accurately report any income you received, even if it’s below the filing requirements.
5. Sign and mail the return
After filling out all required forms and schedules, sign and date the return. Make a copy for your records, then mail the original to the IRS address for your state.
If you are due a refund, consider e-filing your return so you can get your refund faster – many free file programs are available for low income filers.
What if I’m not required to file but want to get a refund?
If you are not required to file a return, but had tax withheld and want to get a refund, you should still file a return to claim your refund. The IRS recommends doing the following:
- Fill out Form 1040 through line 16
- Enter “-0-” on lines 7-21 if they don’t apply to you
- Complete lines 23-35, including entering your standard deduction and exemptions
- Enter any withholding amounts and payments on lines 64, 65 and 68-73
- Sign the return and mail it to the IRS
This will let the IRS know you are due a refund and prompt them to issue it.
What forms do I file if I made no money?
If you have no income for the year, the only form you generally need to file is:
- Form 1040 – This main federal income tax return is used by all taxpayers to report income, calculate taxes, and claim tax credits and deductions.
In addition, you may need to file:
- Schedule EIC – Required if claiming the Earned Income Credit
- Form 8862 – Needed if previously disallowed from claiming the Earned Income Credit
- Form 8965 – For reporting health coverage exemptions
- Form 8962 – To reconcile advance premium tax credits for Marketplace coverage
But in most cases, the Form 1040 is the only document you’ll need to file a basic return with no income.
Can I e-file my taxes for free if I made no money?
Yes, you can electronically file your taxes for free even if you have no income through the IRS Free File program. This provides free e-filing software options for taxpayers under these income limits:
| Age | Free File Eligibility |
|---|---|
| Under 17 | No minimum income |
| 17-51 | $73,000 AGI or less |
| Over 51 | $20,000 AGI or less |
As long as you meet the income limits, you can use free file software like TurboTax or TaxAct to prepare and electronically file your federal return for free. This ensures your return is filed accurately and promptly so you receive any refund faster.
Some free file providers also offer free state return filing. Check the IRS site for details on free filing options.
Do I have to pay taxes if I collect Social Security or disability?
If Social Security benefits or disability payments are your only source of income, you likely won’t owe any federal income tax. However, you may still need to file a tax return.
Here’s how tax rules apply to Social Security and disability:
- Up to 85% of Social Security benefits may be taxable if you exceed income thresholds.
- Disability income, including SSDI, is fully taxable as ordinary income.
- Taxable benefits should be reported on Form 1040.
- You can claim deductions and credits to reduce taxes owed.
- Withholding isn’t required, but you can request it to cover taxes.
So while Social Security and disability income is taxable, the standard deduction and personal exemptions are usually enough to eliminate taxes for those with no other income. But double check your situation to determine if you need to file and if any tax is due.
What other forms may I need to file a tax return with no income?
In addition to the Form 1040, you may need to file these other forms when filing taxes with no income:
- W-2 – For any wages from a part-time or temporary job
- 1099-G – Reports state tax refunds or unemployment compensation
- SSA-1099 – For Social Security benefits received
- 1099-R – Reports distributions from IRAs or pensions
- 1099-INT – Reports any interest income earned
- 1099-DIV – Reports dividend income from investments
You don’t need to file these other forms, but they help report any incidental income you received during the year. Make sure to report all income, even if below filing requirements.
Should I do my taxes myself or hire a tax preparer?
With no income, doing your own taxes is usually pretty straightforward. However, a tax preparer may make sense if:
- You want to ensure you maximize credits and deductions
- You have concerns about previous year tax issues
- You need help navigating state or local return requirements
- You dislike doing paperwork and forms
Many free tax prep options are also available through IRS programs. Ultimately, it comes down to your comfort level doing your own return versus getting professional help. Consider costs versus benefits and what makes you feel most confident.
Key Takeaways
Here are some key points to remember about filing taxes with no income:
- You may still need to file a return to get refunds or claim credits
- Use Form 1040 to report zero income and claim standard/itemized deductions
- E-file for free using IRS Free File program
- You can get tax refunds without any withholding
- Social Security benefits may be partly taxable
- Tax preparers can help maximize savings
Even with no income, carefully filing your taxes is important. Be sure to claim all deductions and credits you’ve earned to get the biggest possible refund.