Haven't filed since 2018, Must i file taxes this year?

[NCperson · Accepted solution]

<<Just file in 2021 for year 2020?>> YES!!! 

<<And getting taxes done earlier than later will have no bearing on when i might recieve any owed stimulus? >> CORRECT.

Infact all PAYMENTS will be stopped by the IRS on January 15th (by law) so there is no confusion whether you should be waiting on the payment or just filing for it through the 2020 tax return.  The tax return window opens in late January so it looks like the IRS is giving it two weeks to let 'checks in the mail' flush out. 

My only caveat is that you don't want to do it too early and find out that the turbo tax software wasn't updated to accommodate the 2nd stimulus.  They have until the end of January to update the software and the IRS just released the requirements on Wednesday, so hopefully it'll be done by Jan 27.

<<What is your guess as to when i could possibly receive stimulus #2 if owed,using tax return??

it's just going to be part of your refund as part of your 2020 tax return. If you file and request Direct Deposit, it normally is refunded to you within a few weeks, but if you get a child tax credit or Earned income credit, the IRS can't release the refund until mid-Feb

https://www.irs.gov/individuals/refund-timing 

for the prior AGI, use zero, see if that works 

does that help? 

[Renquist188]

Thank you yes it all does help. But the way you mention just trying out zero, a little scary?

Can't terrible things happen if you put the wrong AGI?

And yes FYI I'm going to mark your answer as best 

[xmasbaby0]

@Renquist188 

"interview" is just referring to the question and answer process you go through in the software ---nothing to do with meeting with anyone.

Instead of paying so much for the software, if you wait until mid-January you can use Free File--it becomes available then. 

If you qualify to use it, there is another full-featured free version of the software:

Try Free File: 

You qualify if your income was $39,000 or less, or $72,000 or less if active duty military, or if you qualify for Earned Income Credit

https://ttlc.intuit.com/questions/1900583-what-is-turbotax-free-file-program

• https://ttlc.intuit.com/questions/2026912-how-do-i-switch-to-turbotax-free-file-program

And.....I would like to say this----you are getting good advice from user @NCperson 

[Renquist188]

Thank you very, very much. Most grateful for everyone's wisdom here. 

[xmasbaby0]

@Renquist188 Just to reinforce what @NCperson said, it is fine to use "zero" as the 2019 AGI in order to e-file 2020.  That is the standard little software workaround to use to e-file when you do not have a 2019 AGI in the IRS system.  We suggest that all the time.

I am bowing out now--you are in good hands with NCperson.

[MissMCJ]

When you file with TurboTax there is an option to reply that you did not file taxes last year.  If you check that box, it will not ask you for your AGI.

[Renquist188]

One final couple of questions and I'd really enjoy hearing from xmasbaby0 as well here if possible.

• Like NCperson mentioned; it wouldn't be prudent to file asap via TurboTax, like today for example, because TurboTax software isnt up to date yet to accommodate the 2nd stimulus requirements just announced on Wednesday. So, is this to say that if one (hypothetically) filed with proper up-to-date hard copy IRS forms, say manually + via E-file, or with another service( i don't know of any, just a hypothetical) that it still wouldn't be prudent to file asap? My question stems from seeing IRS tax refund date calculators from years past, that typically show for example, "if you filed on Jan 20th, you can expect your refund to be deposited on Feb 13th" etc and so on. Not that i would bet the farm on the accuracy of these calculators, but there is a reason they exist. And If my wife and i weren't both in such a desperate financial bind (both no employment-new baby + 3 kids and my Chemo) i wouldn't be stressing about this, i never have in the past. But I'd like to get to the front of the line at least, to be one of the first recipients of refund. If I can possibly do anything about it. Could there possibly be another, more timely way to file, one that doesn't require waiting for a Jan 27th software update? (no offense whatsoever to TT) 
• In this thread, we discussed that because of child tax credits or Earned income credits, the IRS can't release my refund until mid-Feb anyways. I don't believe one can (or is required to) claim either of these credits with $0 income. Can they? Moreover, I believe my primary and only purpose for filing, and for only filing for 2020 (from what y'all have suggested) is simply so I can claim my 2020 newborn $1100, and get our Recovery Rebate Credit/EIP 2 , correct? So if no EIC/Child tax credits are claimed wouldn't that eliminate the need for IRS to hold my funds until mid-February, thus possibly , maybe getting a more timely direct deposit? 
• The IRS is saying one must have Notice 1444 to determine the amount to include on the Recovery Rebate Credit  worksheet included in 1040, 1040-SR, which is the form I will be filing.  If I already know what the IRS deposited in 2020 for my 1st stimulus, do I need this form? Like to attach it as proof or something? I think we threw ours out.
• And lastly, in my head this should be simple. Get 1040 done with Recovery rebate credit worksheet plus add new kid from 2020, and show that I have Zero income. Provide bank info, and under AGI put a Zero. Is there anything I'm missing?

Apologies for the longwindedness here, must have been all the Komodo Dragon for breakfast!

[NCperson]

• Like NCperson mentioned; it wouldn't be prudent to file asap via TurboTax, like today for example, because TurboTax software isnt up to date yet to accommodate the 2nd stimulus requirements just announced on Wednesday. So, is this to say that if one (hypothetically) filed with proper up-to-date hard copy IRS forms, say manually + via E-file, or with another service( i don't know of any, just a hypothetical) that it still wouldn't be prudent to file asap? My question stems from seeing IRS tax refund date., The  IRS won't accept returns until late January; TT doesn't set that date.  Personally, I suspect TT will have the software updated as it affects EVERYONE 
• In this thread, we discussed that because of child tax credits or Earned income credits, the IRS can't release my refund until mid-Feb anyways. I don't believe one can (or is required to) claim either of these credits with $0 income.  if your income is zero, there is no EIC or CTC to be had in  any event.
• The IRS is saying one must have Notice 1444 to determine the amount to include on the Recovery Rebate Credit  worksheet included in 1040, 1040-SR, which is the form I will be filing.  If I already know what the IRS deposited in 2020 for my 1st stimulus, do I need this form? Like to attach it as proof or something? I think we threw ours out. You don't need the form; I suspect most threw it out, not realizing what it was. you just need to know how much stimulus you received each time.
• And lastly, in my head this should be simple. Get 1040 done with Recovery rebate credit worksheet plus add new kid from 2020, and show that I have Zero income. Provide bank info, and under AGI put a Zero. Is there anything I'm missing? no, other than do you really have zero income????? you will have to amend if you do and it could be worth a lot in refund because of CTC and qualifying tax credit. 

[fanfare]

Visit the IRS at https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

to find truly free filing with various tax software outfits.

If you choose TurboTax, you must create a new account.

If you sign in with your existing account, you'll be back in the same place -- not free -- you're trying to escape.

[Critter-3]

If you did not file a 2019 return the AGI when asked will be zero.

and the interview process just means completing the return using a DIY program of any kind. In my opinion I would wait for the IRS free online system which will open somewhere mid-January. Just go to www.irs.gov and click on file for free and follow the on-screen directions.

[Renquist188]

NCperson

other than do you really have zero income? you will have to amend if you do and it could be worth a lot in refund because of CTC and qualifying tax credit. 

Ashamed to say it but no. We have no income. Up until the end of 2018, I had an amazing 6 figure career that i absolutely loved for 14+ years. Then I got really sick and was diagnosed with cancer at 39. I absolutely could not work any longer. I had some savings though, which lasted a bit. When that ran out, we unfortunately required government assistance.  They help with food only. But wait, could food stamps be considered income? Because if it is, i had no idea.  My mortgage is being handled by a foreclosure prevention agency which helps immensely.  And the rest, electric bills, water are very late most of the time and backlogged, and have been directly paid by donation from cancer related agencies and some donations from family. I cant see any of this as "Income" technically. We don't  "see" or touch any of these funds, it doesn't pass through our hands.  All other accounts went to collections sadly. Its been hard. 

But you do bring up a point. I went and did Turbotax calculator to just see for 2019 a bit ago, and somehow because we have children, though no income, it shows I may be eligible for $500+ dollars from 2019 maybe? But i didn't file for that year. 

About amending taxes, to be honest I don't know much about it. I should probably do more reading on all of this.

[Renquist188]

no, other than do you really have zero income????? you will have to amend if you do and it could be worth a lot in refund because of CTC and qualifying tax credit. 

Unfortunately no . We've had zero income. Been living off savings, after leaving a 6 figure 14+ year career i loved in 2018 due to being so sick from cancer.  We've had to get government assistance, not money only food stamps. Do food stamps count for income? For mortgage now we have a foreclosure prevention agency helping with that. We've gotten some donations from Cancer related agencies for like the water bill here or there, and my parents help when they can with a bill or two, but we don't touch or see any of that money. No cash in other than stuff sold for pennies on the dollar like at yard sale once in a while, a few small depreciated things on Ebay.  All credit accounts are now in collections, its really tough on the family.

You bring up a point though. I didn't file in 2019, but just did the TT calculator and it showed that even though i didn't have income, that i might be eligible for $500+ dollars?? maybe for the kids? that doesn't really make sense to me but yeah. 

I dont know about amending though. I should read a little more on tax related things though. 

and btw the reason i brought this up is that i am now hoping that i wont have to wait out until mid February for refund. if your income is zero, there is no EIC or CTC to be had in  any event.

[NCperson]

sorry for your situation...suggestion: rather than spending the time on reading up on tax stuff, it might just be worth filling out the Turbo Tax free form in mid-January.... all the rules are built in and if you just answer the questions, you'll have the right tax return in the end.

[Renquist188]

@NCperson

I called h&r block just out of curiosity and they told me as of tomorrow, the 15th of January, their software will be updated for the recovery rebate credit and that if I wanted to come in tomorow to file I could. (I don't want to) but have you heard any updates on Turbotax for the recovery rebate software for TT? 

And does that sound accurate that they would have the software updated so soon? 

[ThomasM125]

All of the automatic payments should be processed by January 15, 2021 (tomorrow.) If you don't receive your stimulus payment soon, then you should file a tax return in 2020, even if you have no income and are not required to file. That is the only way you can get your stimulus check if you didn't receive it automatically. There is no separate application for the stimulus check at this time, you have to file a tax return to receive it.

When you prepare your tax return for 2020 in TurboTax, you will be prompted to enter how much you received for your stimulus and then the program will calculate the amount of stimulus due you based on your income, number of dependents and payments already received. If any additional stimulus is due you, it will be used to reduce your 2020 income tax liability, and the balance will be refunded to you.

You will see the options when you are done entering your tax information and proceed to the review process.

You can file a tax return in 2020 to get your stimulus check, even if you aren't required to otherwise.