Hello!! This is the first year that I have barely worked, and not made any income. However, I did receive unemployment benefits, which was around $11, 040 this year. I didn’t have any taxes taken out of my unemployment either. I have only been back to work since just this month, December 2024, and unfortunately my income is only going to be around $1100-$1200 (I figured it until the end of year). I do have 3 dependents, two are 5yrs and under, the other is 12yrs old.
I’m stressing as this will be my first year ever with little to no income. Should I still file, or will I even qualify for any credits for my 3 dependents!?
Thank you all so very much, and Happy Holidays!! 😊
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The child-related credits like the refundable additional child tax credit and earned income credit are based on having income from working, so if you did not work, you will not be eligible for those credits. You need a minimum of $2500 from working to get even the smallest amount of the additional child tax credit. If you have some income from working, you might get some earned income credit.
https://ttlc.intuit.com/questions/1900923-what-is-the-child-tax-credit
https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant
Who has to file?
http://www.irs.gov/uac/Do-I-Need-to-File-a-Tax-Return%3F
UNEMPLOYMENT COMPENSATION
Unemployment compensation is taxable on your federal return.
You will have to enter a 1099G that is issued by your state.
Some states will mail out the 1099G. Or you might need to go to your state’s unemployment website and use the password, etc. that you have been using to certify for weekly benefits to get your 1099G from the state’s site.
Enter your 1099G in Federal>Wages & Income>Unemployment
Go through the screens very carefully, making sure to enter any federal/state tax you had withheld from the unemployment.
Most states with a state income tax do tax unemployment benefits
AL, CA, DC, NH, NJ, and PA do not tax unemployment
The child-related credits like the refundable additional child tax credit and earned income credit are based on having income from working, so if you did not work, you will not be eligible for those credits. You need a minimum of $2500 from working to get even the smallest amount of the additional child tax credit. If you have some income from working, you might get some earned income credit.
https://ttlc.intuit.com/questions/1900923-what-is-the-child-tax-credit
https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant
Who has to file?
http://www.irs.gov/uac/Do-I-Need-to-File-a-Tax-Return%3F
UNEMPLOYMENT COMPENSATION
Unemployment compensation is taxable on your federal return.
You will have to enter a 1099G that is issued by your state.
Some states will mail out the 1099G. Or you might need to go to your state’s unemployment website and use the password, etc. that you have been using to certify for weekly benefits to get your 1099G from the state’s site.
Enter your 1099G in Federal>Wages & Income>Unemployment
Go through the screens very carefully, making sure to enter any federal/state tax you had withheld from the unemployment.
Most states with a state income tax do tax unemployment benefits
AL, CA, DC, NH, NJ, and PA do not tax unemployment
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