For the past two years, I haven't made enough to have to file taxes after business deductions. I have 1099 income and basically live off of government benefits. That being said, I usually do make some money. When I clicked on the information question mark it gave a list of all the things that are considered taxable and non-taxable income, but didn't mention what to do if you didn't make enough money to file taxes. Does anybody know what I should do?
I need to recertify for my income based payments, if I didn't make enough to do taxes, do I click yes or no for having taxable income?
byu/Fit-Combination-6211 inStudentLoans
Posted by Fit-Combination-6211
4 Comments
I would submit the 1099’s as proof of income
You should answer the question which was asked, which is not whether you were required to file a tax return.
Follow the checkboxes. You didn’t file your taxes in the last 2 years but you do have taxable income, which will route you to the alternative documentation flow where you will attach 1099s and similar documents to show your gross income for IDR plan purposes
If you’d prefer not to do the alternative documentation route, you can also file your taxes anyway (even though you’re not required to) in order to capture the income you did earn. Assuming you’re correct about earning too little to be required to file, you’ll get a $0 minimum payment on the IBR plan.