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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
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