Health Coverage Tax Credit
The health coverage tax credit helps certain displaced workers and pre-retirees pay for health insurance. Specifically, it is available to people eligible for Trade Adjustment Assistance allowances because of a qualifying job loss, and people between 55 and 64 years old whose pension plans were taken over by the Pension Benefit Guaranty Corporation. The credit is worth up to 72.5% of payments for qualified health insurance coverage.
As with the other credits we’ve mentioned, the health coverage credit is refundable. So, if you can claim the credit, you’ll want to file a tax return just to claim the credit, even if you’re not required to file a return. By doing so, you can get a federal income tax refund check sent to you.
As with the premiums tax credit, the health coverage credit can be paid in advance. If you received advance payments last year, you must file a 2021 tax return. That also means that your refund will be smaller if the advance credit payments are greater than your actual allowable credit.
Also note that the health coverage credit expired at the end of 2021, so you won’t be able to claim it next year when you file your 2022 tax return.
While People With Income Under A Certain Amount Aren’t Required To File A Tax Return Because They Won’t Owe Any Tax If You Qualify For Certain Tax Credits Or Already Paid Some Federal Income Tax The Irs Might Owe You A Refund That You Can Only Get By Filing A Return
Get to know the IRS, its people and the issues that affect taxpayers
As the Deputy Commissioner of Wage & Investment, its important to me that my organization ensures that everyone can claim the tax credits theyre eligible for, whether its a tax refund, a stimulus payment or federal withholding credits.
Before I talk about 2020 tax returns, I do want to mention that IRS employees are hard at work to process some of last years returns that we werent able to get to because of the many office closures during the pandemic. Its important that you file your 2020 tax return even if your 2019 tax return hasnt been processed yet. We will still process your 2019 return even if youve already gotten your 2020 tax refund.
What Happens If Your Employer Doesn’t Withhold Federal Income Tax
No Federal Income Tax Withheld If your employer didn’t take out enough, you’ll owe on April 15. If your employer took out too much, you’ll get a refund. … Although the responsibility for paying your taxes ultimately falls on you, employers face criminal and civil penalties for failing to withhold taxes on employees.
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Coronavirus Unemployment Benefits And Economic Impact Payments
You may have received unemployment benefits or an EIP in 2021 due to the COVID-19 pandemic.
Unemployment compensation is considered taxable income. You must report unemployment benefits on your tax return if you are required to file.
If you received the EIP, you do not need to report it as income whether youre required to file a tax return or not. If you did not receive some or all of your stimulus payments, you may claim missing stimulus money that you are owed by filing for a Recovery Rebate Credit on your 2021 return.
Filing Taxes Without Any Income
If an individual has no income at all, he does not need to file a tax return but he can do so if he wants. This can be useful for someone without income but eligible for tax credits.
Generally, these are amounts deducted from your taxes. However, if the credit is more than the amount the individual owes in taxes, he can sometimes claim the excess credit as a refund if he files a tax return.
However, the child tax credit would not be available to a person who earned nothing. It is only available to people who earned an income of $2,500 or more.
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Filling Out The Fafsa To Get Financial Aid
Head over to the Department of Education website to start your FAFSA application. Youll need to have the following ready as you complete the process:
- Social Security number and, if applicable, Alien Registration number
- Financial account statements
- Federal income tax returns, W-2s and other records of money earned
Be aware that you may be able to pull in your tax documents via the IRS Data Retrieval Tool available within the FAFSA form.
While you dont need a Federal Student Aid ID to fill out the FAFSA, it can be a good idea to create one. Having an FSA ID can make it easier to find your application once its started, as well as to access other information about financial aid throughout your college career. You can quickly pull up your student aid reports, as well as keep track of your direct loan servicers.
|Special cases affecting federal financial aid eligibility|
|Beyond a Pell Grant, you could also qualify for an Iraq and Afghanistan Service Grant|
If you have your information together, its possible to complete your application in 30 minutes or less. Plus, you could complete the 2023-24 FAFSA form on your phone via the myStudentAid app.
You can also use the FAFSA4caster tool to estimate your potential financial aid before you even start your application, so you can get an idea of where you stand.
Child And Dependent Care Credit
As with the child tax credit, there were several enhancements made to the child and dependent care tax credit that only apply for the 2021 tax year including making the credit refundable for people who live in the U.S. for more than half of the year, which means you definitely want to file a 2021 tax return if you qualify for the credit.
The credit helps people who work, are looking for work, or attending school pay for the care of children under 13 or certain other people who can’t care for themselves. In addition to being refundable, credit amounts will be higher and more people will qualify for the credit on their 2021 tax returns.
For the 2021 tax year, you’re eligible for a 20% to 50% credit for up to $8,000 in care expenses for one child or other qualifying person or up to $16,000 in expenses for two or more. There are income limits, though. You’re eligible for the full credit if your AGI doesn’t exceed $125,000. The percentage is gradually reduced from 50% to 20% if your AGI is between $125,001 and $183,000. It stays at 20% if your AGI is from $183,001 to $400,000, but then it’s gradually reduced again from 20% to 0% if your AGI is between $400,001 and $438,000. You can’t claim the credit if you make over $438,000.
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About Filing Your Tax Return
If you have income below the standard deduction threshold for 2022, which is $12,950 for single filers and $25,900 for married couples filing jointly, you may not be required to file a return. However, you may want to file anyway because you may be able to take advantage of several features and benefits in the tax system which could reduce the amount you owe, or in many cases, especially for people with low incomes, increase the amount you could receive in a refund. Some key factors to make sure you look out for include:
I Was Unemployed Half Of The Year Do I Need To File Taxes
Unemployment is a tremendous burden to carry. In addition to causing financial strain and indecision about your future, it also causes a few headaches regarding taxes.
Even if you did not work for half of the year or more, you still must file taxes. There are certain things you may need to reportand there are also tax credits or deductions that could be available.
Here is your guide to filing taxes if you were unemployed half of the year.
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If You Are Due A Refund
Good newsyou wont owe any penalties if you are due a refund on your tax return. You should still file as soon as possible because you cant receive your refund check unless you file. If you dont file within three years of the returns due date, the IRS will keep your refund money forever.
Its possible that the IRS could think you owe taxes for the year, especially if you are claiming many deductions. The IRS will receive your W-2 or 1099 from your employer. However, the IRS wont know about your itemized deductions or business expense deductions until you file, so they could come after you if they think you should have sent them a check for taxes owed.
You can prevent this issue by filing your return as soon as possible. You can also get an automatic six-month filing extension by submitting Form 4868, as long as you file on or before the due date of the tax filing deadline.
Contact Levy & Associates For Unemployment Taxes
If you are concerned about how you will pay back tax debt, contact Levy & Associates today. We help unemployed individuals file taxes, take advantage of tax credits and deductions, and find solutions for paying off any debt.
Your first meeting with us has absolutely no obligation or cost. Please visit www.levytaxhelp.com for more information.
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Child Tax Credit For Non
Americans have struggled during the pandemic, especially people with kids. The Child Tax Credit is here to help.
The deadline to sign up for monthly Child Tax Credit payments is November 15. The Administration collaborated with a non-profit, Code for America, who has created a non-filer sign-up tool that is easy to use on a mobile phone and also available in Spanish.
Heres a link to the Code for America non-filer sign-up tool:
Most families are already signed up! If youve filed tax returns for 2019 or 2020, or if you signed up with the Non-Filer tool last year to receive a stimulus check from the Internal Revenue Service, you will get the monthly Child Tax Credit automatically. You do not need to sign up or take any action.
If you arent already signed up, you can still sign up to get the Child Tax Credit. You wont lose your benefits if you do. These payments do not count as income for any family. So, signing up wont affect your eligibility for other federal benefits like SNAP and WIC.
You are also eligible to apply for the Recovery Rebate Credit, also known as stimulus payments, as part of this process.
Heres a list of things you will need to complete the process.
- Social Security Social Security numbers for your children and Social Security Numbers for you and your spouse
- A reliable mailing address
- E-mail address or phone number
- Your bank account information .
Heres a link to the Code for America non-filer sign-up tool:
Doing Business In California And Have Not Filed
If youre doing business in California, youre subject to our tax laws. Visit our Business filing page to figure out your filing requirements, based on your business type.
If you’re doing business as a corporation or trust, you may be eligible to participate in our Voluntary Disclosure Program.
If youre an out-of-state business, you may qualify for a Filing Compliance Agreement.
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Need A Loan Get One In 3 Simple Steps
If you are considering applying for a personal loan, just follow these 3 simple steps.
Apply online for the loan amount you need. Submit the required documentation and provide your best possible application. Stronger applications get better loan offers.
If your application meets the eligibility criteria, the lender will contact you with regard to your application. Provide any additional information if required. Soon youll have your loan offer. Some lenders send a promissory note with your loan offer. Sign and return that note if you wish to accept the loan offer.
The loan then gets disbursed into your U.S. bank account within a reasonable number of days . Now you need to set up your repayment method. You can choose an autopay method online to help you pay on time every month.
Stilt provides loans to international students and working professionals in the U.S. at rates lower than any other lender. Stilt is committed to helping immigrants build a better financial future.
We take a holistic underwriting approach to determine your interest rates and make sure you get the lowest rate possible.
Learn what others are saying about us on , Yelp, and or visit us at . If you have any questions, send us an email at
Unearned Income Reported By Parent
In limited circumstances, if you have only interest and dividend payments, a parent can elect to include the income on their tax return instead of the child having to file a separate income tax return. To qualify for this option, the child must be under 19 at the end of the year, though the age is increased to 24 if the child is a full-time student. The child cant have any income other than interest and dividends, and the total interest and dividend income for the year cant exceed $11,000. In addition, the child cant have made any estimated tax payments or had any income taxes withheld, and cant be filing a joint tax return for the year.
For example, say you are a 19 year old full-time student and are single. If you have $1,000 of interest and dividend income, and no other income, your parents could include your income on their tax return so you dont have to file a separate income tax return. However, if you have any other taxable income, even if its just a taxable scholarship because your scholarship covers room and board, youre required to file your own income tax return.
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Filing Taxes While Unemployed
You still need to file your taxes even if you were unemployed for the entire year. It will indicate to the IRS whether or not you received unemployment benefits, as well as if you wish to claim any tax credits or deductions.
The good news is you have multiple options for how you file your taxes and pay for tax liability.
Taxpayers may decide to have the taxes owed withheld from upcoming unemployment compensation, or unemployed individuals may decide to pay estimated quarterly taxes to avoid a bigger lump sum at the end of the year.
You should make yourself aware of whether or not paying estimated quarterly taxes makes the most sense for you. Unfortunately, the IRS does penalize taxpayers who underpay throughout the year if they wait until April for the lump sum, which many unemployed individuals cannot afford.
What If I Dont Have A Permanent Address
You can receive monthly Child Tax Credit payments even if you dont have a permanent address. You can list a trusted address where you would like to temporarily receive your monthly checks, such as the address of a friend, relative, or trusted service provider like a shelter, drop-in day center, or transitional housing program.
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Can I File An Income Tax Return If I Dont Have Any Income
Filing a tax return is always important, so you have to make sure you do it before the deadline. But what is the procedure when you didnt have any income last year?
The good news is that you are not forced to file a return if you didnt get have any income in the last tax year. Every single year, there are some minimum income requirements imposed by the IRS they change annually depending on your tax status or inflation.
So, your requirements can change based on whether you file jointly, youre married but filing separately, youre single, and so on. So, a tax return is not mandatory if you have no income. Still, you may want to do it regardless, because there are some huge reasons for this.
Filing despite getting no income the last tax year will allow you to claim some refundable tax credits, which can then offer you some tax refund. This applies even if you dont have a job. Therefore, it is possible for you to qualify for the Additional Child Tax Credit or the Earned Income Tax Credit. They are both refundable tax credits.
Besides, you can also file if you earned very little income last year. This makes it possible for you to recover taxes that were withheld from the last time you paid. It is a scenario that occurs when you had a job, but only for a small part of the last year.
You will also have to file your taxes if you got any health care tax credits or subsidies for the last year. This allows you to receive them from now on too.
Filing Taxes With No Income Faqs
Do you have to file taxes if you have no income?You only have to file taxes if you make above the IRS-imposed income thresholds which vary based on your filing status . You can still file your taxes even if you have no income if you choose.
Can you file taxes with no income but have a child or dependent?If you have no income but have a child/dependent, you can still file your taxes. This may allow you to get a refund if the tax credits youre eligible for are more than your income.
Do you have to pay taxes if you dont have a job?If you dont have a job, you will have to file taxes if you meet the IRS minimum income thresholds. If you have no income, you are not required to file your taxes but there may be benefits to doing so.
How can I file a zero-income tax return?You can file your zero-income tax return just like any other tax returnthrough the mail or online.
How can I file a zero-income tax return online?You can file your zero-income tax return online using the IRS Free File system or an online tool such as TurboTax.
What is the benefit of filing a tax return even if you dont have enough money?Even if you have no or low income, filing your taxes can lead to you receiving a refund if your tax credits are more than your income.
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