marctu
Employee Tax Expert

Get your taxes done using TurboTax

So to capture what you are following up on:

 

2022:  $0 Earned Income = no Earned Income Tax Credit and no Child tax Credit

 

2023:  $5,000 Earned Income and $300 Tax Payment = Tax Refund of $2,072 with the components of the refund being some Earned Income Credit and some Child Tax Credit.   Also at $5,000 of self-employed income there is some self-employment tax paid as well.      

 

The point is that the key to both credits is earned income not the payment of taxes.  This is a which came first the chicken or the egg scenario here.   I think you can make better use of the $300 during the course of the year rather then waiting for the $300 being returned to you when you file your tax return and then after the IRS processes the refund. 

 

Thank you for the opportunity to answer your questions @Zitro 

 

All the best,

 

Marc T.

TurboTax Live Tax Expert

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"