Filing a tax return when you have no income may seem pointless, but there are some good reasons to submit one to the IRS anyway. Even with zero income, you may be eligible for refundable tax credits that could result in a nice tax refund.
This article will walk through everything you need to know about filing taxes if you had no income in 2024. We’ll cover who needs to file, reasons to file voluntarily, how to claim credits and get a refund, and what documentation you’ll need.
Do I Need to File a Tax Return With No Income?
In most cases, you do not need to file a federal tax return if your gross income falls below the standard deduction for your filing status. For the 2024 tax year, the standard deductions are:
- Single: $13,850
- Married filing jointly: $27,700
- Head of household: $20,800
So if in 2024 you earned less than the standard deduction for your filing status, you generally do not need to file a tax return.
However, there are some situations where you may still need to file, even with zero income:
- You had over $400 in net earnings from self-employment
- You can be claimed as a dependent on someone else’s tax return
- You’re eligible for refundable tax credits (more details below)
- You owe special taxes, like the alternative minimum tax
So check those factors before deciding not to file.
Why Should I File a Tax Return With Zero Income?
While you may not have to file with no income, there are good reasons you might want to file anyway:
1. To Claim Refundable Tax Credits
The IRS offers several refundable tax credits that can result in a nice tax refund for low-income Americans, even if you don’t owe any tax. Some examples include:
- Earned Income Tax Credit (EITC): A credit for low-income working individuals and families. The maximum 2024 EITC is over $7,000 for families with 3+ kids.
- Additional Child Tax Credit: Provides up to $1,500 per child under age 17. Fully refundable for 2024.
- Premium Tax Credit: Offsets health insurance premium costs. Excess amounts over your tax bill are refundable.
- Education credits like the American Opportunity Credit provide up to $2,500 per student. 40% of the credit is refundable.
To claim these credits and receive a refund, you must file a tax return even with zero income. The credits can put hundreds or even thousands of dollars back in your pocket.
2. To Get Your Full Refund Faster
When the IRS calculates refunds from credits like the EITC and Additional CTC, they limit refunds to taxpayers who have filed a return. Without a return on file, your refund may be significantly delayed.
So filing a return, even with zero income, ensures you’ll get the full refund owed to you as quickly as possible.
3. To Establish a Filing History With the IRS
Having a consistent history of tax filing establishes your compliance with IRS rules. This can help avoid issues if you fail to file a required return in the future. Penalties for failing to file add up over time.
Building a solid filing history through voluntarily filing each year can prevent headaches down the road.
How Do I File Taxes With Zero Income?
Filing with no income is simpler than a standard tax return. But you still need to report some information to the IRS. Follow these steps:
1. Gather Necessary Documents
Even with no income, gather any tax documents you receive, like:
- Forms W-2 and 1099 showing your income sources
- Social Security cards or ITIN notices for you and dependents
- Proof of identity like a driver’s license
- Paperwork for any credits you plan to claim
If you don’t have paper copies, electronic documents are also accepted by the IRS.
2. Prepare Your Return
The IRS offers free guided tax prep software called IRS Free File that handles basic tax situations. It’s available for taxpayers with an AGI below $73,000. Since your income is zero, you likely qualify to use this software for free.
The guided interview process will help you claim any credits you qualify for, like the Earned Income Tax Credit, and maximize your refund.
If you need extra assistance, the IRS also offers free tax prep help through programs like Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE).
3. Submit Your Return
When your return is complete, file it electronically instead of on paper to get your refund faster. Electronic filing is available through IRS Free File. Make sure to use direct deposit as well to expedite refund delivery.
After filing, expect your refund from credits within 3 weeks if you file electronically and use direct deposit.
What If I’m Not Eligible for Refundable Credits?
If, for some reason, you don’t qualify for refundable credits, filing is likely not worthwhile if you have no gross income. Since no taxes are owed on $0 of income, there is no penalty for not filing a return.
However, if your situation changes in the future, voluntarily filing can establish a history with the IRS and prevent late filing penalties.
Just remember, with no income for 2024, you aren’t required to file a federal tax return. Focus instead on claiming any refundable tax credits you qualify for to put cash back in your pocket.
The Bottom Line
- File a return if you have over $400 in self-employment income, regardless of gross earnings
- File to claim refundable tax credits like the EITC and Child Tax Credit, even with zero income
- Use IRS Free File software to prepare your simple return for free
- Submit electronically and via direct deposit for fastest refund delivery
Even if you aren’t required to file taxes, submitting a return can help you claim credits and refunds you’ve earned and establish a solid history with the IRS. Follow the steps outlined here for the best way to handle taxes with zero 2024 income.