I haven't worked all year, my income is zero. I'm basically living off savings which includes paying my property taxes.
Should I even bother filing my taxes next year? What's the point?
Edit: Thanks everyone. I guess I'll continue to file just to keep things on record. It just seems weird to me to write zero on a tax return.
Should I bother filing if my income is $0
byu/Ok-Writer3512 intax
Posted by Ok-Writer3512
31 Comments
yes, because not filing makes a huge headache later when everyone asks “why didnt you file” and says “you cant do XYZ until you file”
ask me how I know
You’re not strictly required to unless you make $14,600 or more but personally I’d file still just to keep records.
And the statute of limitations doesn’t start to run until you file.
if your income is zero, generally no need to file. unless you need to claim refundable credits or health insurance subsidies.
It might be worth doing just to get a Tax Return for the year on record, but it’s not strictly necessary.
You should file to put it on the record that you had zero income.
You should particularly if you qualify for any credits that don’t require earned income, recommend filing using FreeTaxUSA.
Additionally, if you have a 401k / Traditional IRA, and have some leeway in savings to cover the taxes, it might be worth considering converting some of those traditional funds to a Roth, and taking the lower tax hit now rather than a (likely) higher tax hit later in life.
Yes, you are required to file and many social benefits are tied to having filed.
Yes you should file, and if they actually did the rebate checks, last time they took it from the tax rolls, if you did not file, you would not get one.
it starts the statute of limitations. No filing, statute never start
If you have something questionable you want to get this started.
you may still be eligible for one of these credits if you file with zero income
* **Earned Income Tax Credit (EITC):** A significant credit for low-to-moderate-income workers and families.
* **Child Tax Credit (CTC) / Additional Child Tax Credit:** If you have qualifying children, you may be eligible for a refund through this credit.
* **American Opportunity Tax Credit (AOTC):** For eligible students to help with education expenses.
* **Recovery Rebate Credit:** If you missed any previous government stimulus payments, filing a return is the way to claim them.
Yes. Start running the statute of limitations.
It’s not required but just in case you want to file for assistance or something later on they will ask for income verification. Always better to just file it to have the record rather than having to go back later which can be a pain in the 🫏.
File. You may be entitled to a tax credit that is refundable.
Worth at least using one of the free file programs to see if you qualify for any credits that do not require earned income (though many of the common ones do). If you get to the end and find out, you owe nothing and are owed nothing, may as well file and just have it on record. It shouldn’t take long.
I made my buddy so taxes even though he made virtually nothing. Had he bit did that he wouldn’t have received the COVID stimulus checks.
I had a coworker who was dealing with her brother being audited by the state of California because he didn’t file a tax return one year and was paying property tax on his condo, so they decided that he must have been making money. She was trying to recreate a tax return from several years earlier, when he was just living off savings. Would have saved a lot of trouble if he had filed it in the first place.
This may be a California specific issue, the FTB is very aggressive.
There is no harm in filing. It protects your SSN from being used on another return. It reduces the chances of filing a return in your name. It starts the statute of limitations, which limits how long the IRS has to review the return.
While there is also no harm in *not* filing if a return is not required, as another reply alluded to, there can be other, non-tax issues that come up later. Some government programs require tax returns to be filed. Some lenders require them. They are generally required for FAFSA or ACA health insurance. As long as your SSN is unused for that year, the potential for tax related identity theft remains.
1. Earn some income, if you can – It gives you access to things like the Earned Income Tax Credit and the ability to put post-tax money into a Roth IRA where it can grow tax free and you can withdraw it tax free when you retire.
2. Heck, it may be worth converting 401K or Traditional IRA money into Roth funds if you have them just to have some income that is below the taxable limit – you may have to pay a 10% penalty, but you’ll save on income taxes in the future when your income may be higher.
3. As others have said, FILE – it doesn’t cost much, if anything, and it could avoid grief in the future.
4. Why don’t you have any income ? If you have enough savings to be able to live off, you should be able to earn something in the way of interest. 2-4% may not be much, but it helps your savings keep pace with inflation at least.
Good luck.
it only takes a few minutes. freetaxusa.com
I write plenty of zeros on tax returns. Like, not a joke, I’ve filed many zero dollar returns because the local jurisdictions will automatically hit you with a failure to file.
That’s how mu daughter missed her covid check
You may have a loss
If you have any long term cap gains you could sell now and pay 0% tax with the option to buy back immediately if you still like the stock. I believe $48350 is the max for a single filer in 2025.
It’s best to just file so you don’t run into any identity theft issues.
Do you have any traditional IRAs? You should convert to Roth up to the standard deduction.
I would. It will be a five minute deal, but you will thank yourself later.
You can use freetaxusa, and just knock it out easy.
I’ll file it for you
No, there is no reason to file.
Federal bonuses are based on fileing so yes
Always