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Faceandbodyworks
New Member

Is it possible to receive a refund when no taxes were paid?

I have a sole proprietorship business and it is my only income.
1 Reply
DanielV01
Employee Tax Expert

Is it possible to receive a refund when no taxes were paid?

Yes, it is possible.  If you are claiming children or educational credits on your return, you may be entitled to certain refundable credits which are considered the same as tax withheld from your paycheck:  any amounts that go above the tax due are included as part of your refund.  This most commonly happens when you have self-employment (which is earned income), and qualify for earned income and perhaps Additional Child Tax Credit.  Even if you made no estimated payments, if you qualify for these credits, it is very possible to still have a refund.

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