Can you still file taxes if you had no income last year?

Paying taxes is mandatory, but what happens if you don’t have an income to report to the IRS? Even in this situation, you shouldn’t neglect to submit a tax return because you may be eligible to claim tax credits that will land you a refund even if your tax bill is $0.

Is it still necessary to file a tax return even if I don’t have a salary or income?

If you did not earn any income during the previous tax year, you are not required to file a tax return. The minimum income threshold for filing a tax return is adjusted annually by the Internal Revenue Service (IRS) based on various factors such as inflation and your individual tax situation.

This year, individuals under 65 making over $12,950 must submit a tax return. For those 65 and older, that threshold increases to $14,700.

For all other filing statuses, a return is required if one files as:

Benefits of filing a tax return even without an income

Different filing statuses such as “married filing separately,” “married filing jointly,” “no dependents,” and “other” can impact your eligibility for certain benefits and exemptions. Although filing a tax return is not mandatory if your income is zero, there are some compelling reasons to do so. For instance, there are refundable tax credits available, which means that even if you had no income last year, you may still get a refund. This is particularly relevant for those who are currently unemployed. Additionally, if you have children, you could qualify for tax breaks like the Earned Income Tax Credit and the Child Tax Credit. Both of these credits may be refunded if you paid more taxes than you owed.

You may still file even if you had a very low salary last year

If you have worked for a short time in the past calendar year or are a student with a low salary, you might be eligible for a refund of your back taxes. Students should be aware that if they are claimed as dependents on their parent or guardian’s tax return, they may not be eligible to receive certain rebates, credits, or other benefits. One of these credits is the Earned Income Tax Credit, available to workers who make less than $63,398 with an investment income below $11,000.

Self-employed individuals and company owners face unique challenges when it comes to taxes. If your income exceeds $600, you must report it on your tax return. There may be some confusion if you are a contractor and your salary is between $400 and the threshold for W2 workers.

If you received any healthcare tax credits or subsidies during the previous year, you must file your taxes. This will allow you to continue receiving them.