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I didn't work for 2016 but I have kids can I still file taxes to claim them?

I know these posts are a little out of date (only five months) but it's tax season again so here is the meaning of that article versus the question asked. Q= Should a person file a tax return since they have children but did not work?  Answer = YES (according to the IRS)  in her question there is no mention of tax credits or tax refunds just "should a person with kids that didn't work file taxes".  Why = That is where the article mentioned by chadroche5 above comes into play. The article very specifically states "IRS does not hold your refund" "however, if you file you maybe able to claim rollover tax credit(s)" What does that mean. So lets say she sold $500 worth of items on Amazon in 2016 but didn't file because of the information that was provided above. Well after paying the self employment tax and any other applicable tax they then could get the applicable tax credits that were available in 2016 for 2019

I didn't work for 2016 but I have kids can I still file taxes to claim them?

She would have to amend 2016, but only if she made a profit (not just sales) on Amazon.

I didn't work for 2016 but I have kids can I still file taxes to claim them?

another sombody wanting to benefit from the system..go figure .. no income means your taxes kept this person ane their kid up all year instead of working to and doing there part theyll just rely on the gov't, now tax season is here and they want some of that too!!! #lowlife # slum #worthless makes me sick......

I didn't work for 2016 but I have kids can I still file taxes to claim them?

But if I worked for this person as his driver for more then six months but he paid me only in cash and have no receipts

I didn't work for 2016 but I have kids can I still file taxes to claim them?

@lionelleal   That is self employment income.

 

To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax.  You will need to use the Online Self Employed version or any Desktop program but the Desktop Home & Business version will have the most help.

 

For the future, you should use a program like Quicken or QuickBooks to track your income and expenses.  There is a QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Online Self Employed  return....

http://quickbooks.intuit.com/self-employed

 

You need to report all your income even if you don't get a 1099Misc. You use your own records.  You are considered self employed and have to fill out a schedule C for business income.   You use your own name, address and ssn or business name and EIN if you have one.   You should say you use the Cash Accounting Method and all income is At Risk.   

 

After it asks if you received any 1099Misc it will ask if you had any income not reported on a 1099Misc. You should be keeping your own records.  Just go through the interview and answer the questions.   Then you will enter your expenses.

 

FOR 2019

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment.  You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400.  The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.  So you get social security credit for it when you retire.  

 

The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 Schedule 2 line 4 which goes to 1040 line 15.  The SE tax is in addition to your regular income tax on the net profit.  You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040 Schedule 1 line 14 which flows to 1040 line 8a.  Turbo Tax automatically calculates the SE Tax and Adjustment.

 

For 2019 Schedule C Net Profit or Loss now goes to 1040 Schedule 1 line 3.  Then the total on schedule 1 line 9 goes to 1040 line 7a.

 

Here is some IRS reading material……

 

IRS information on Self Employment

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

 

Pulication 334, Tax Guide for Small Business

http://www.irs.gov/pub/irs-pdf/p334.pdf

 

Publication 535 Business Expenses

http://www.irs.gov/pub/irs-pdf/p535.pdf

 

You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version.  How to enter self employment income

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

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