Can I still file tax even if I did not work in 2020?

[oyinda15]

I am unemployed, can I still file tax?

[xmasbaby0]

What do you want to enter on a tax return?  Do you have some taxable income to enter?   You have missed the deadline to use the free software.   So if you want to file a tax return you will have to pay to do so.

[Carl]

Keeping in mind that it's perfectly possible for you to have reportable income from sources other than work, If you have no income from any source in 2020, why would you want to file a tax return? Do note that you can not file a $0 income tax return.

[rjs]

Did you receive unemployment benefits in 2020? If so, depending on your filing status, you might have received enough that you are required to file a tax return. Unemployment benefits are taxable income. You can go to the following link on the IRS web site to see if you are required to file.

Do I Need to File a Tax Return?

[tagteam]

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@Carl wrote:

Do note that you can not file a $0 income tax return.

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Anyone actually can file a zero return with the IRS.

https://www.irs.gov/about-irs/filing-a-2020-tax-return-even-if-you-dont-have-to-could-put-money-in-y...

https://turbotax.intuit.com/tax-tips/irs-tax-return/can-i-file-an-income-tax-return-if-i-dont-have-a...

[Carl]

Maybe I should have been more specific. You can't e-file a $0 income return with the IRS. I saw posts from others who attempted a e-file a $0 return for 2019 and the IRS computers would not accept it. Also, from what I've been told by those who mailed a paper return to the IRS with $0 income on it, looks like it was never even processed, as nothing shows up on the filing history for the tax year a $0 return was mailed.

[Hal_Al]

Q. Can I still file tax even if I did not work in 2020 and/or are otherwise not required to file?

A. Yes.  But, you need to explain what you are trying to accomplish.

If it's for the stimulus payments, there was a non-filer tool available at irs.com to do that.  That is no longer available and you will need to file a 2020 return to get the 2020 Recovery rebate credit (stimulus).  People who qualified as dependents, in 2020, are not eligible for the Recovery rebate credit .

If it's about child credits, the money you hear about people getting for just filing a tax return claiming kids requires them to  have some earned income (wages or self employment). Without earned income, they are not eligible for the "refundable" Earned Income Credit or Additional Child Tax Credit.  Both credits are calculated on the amount of earned income you have. No earned income means no "refund". A small amount of earned income means a small refund. For 2020, the child tax credit does not "kick in" unless you have at least $2500 of earned income.  For 2021, the rules are different, and you will not need earned income to claim the Additional Child Tax Credit. But, you will not file your 2021 tax return until early 2022. 

A child can be the “qualifying child” dependent of any close relative in the household. If you live with someone else, e.g. your parents, it may be better if they claim your child.

Instead, you could allow the non-custodial parent to claim the children.  Non-custodial parents are allowed to claim the child tax credit, but not the Earned income credit.

If you are a student, over age 23, and are not claimed as a dependent by someone else (e.g. your parent) you may be eligible for the up to $1000 refundable American Opportunity (tuition) Credit. That credit is not dependent on having either kids or earned income. You must be at least a half time undergraduate student. There's even a loop hole available to claim the credit, if you are on scholarship.

[rjs]

When, for any reason, someone wants to file a tax return with no income, the common practice is to enter $1 of interest or $1 of other income. The $1 of income does not incur any tax or cause any other problems, but it allows the tax return to be e-filed.

[tagteam]

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@rjs wrote:

When, for any reason, someone wants to file a tax return with no income, the common practice is to enter $1 of interest or $1 of other income.

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That is the best approach and virtually foolproof. 

Regardless, the return needs to have a digit entered on certain lines; a completely blank return will not work.

[TWJ4899]

My daughter is a college student who has no earned income.  She is a dependent of mine to support the college expense.  She received a 1098-T from the university for tuition.  Does she has to file for tax return?  

We as parents paid her room & board using 529 fund and received 1099-Q this year.  

[Vanessa A]

No, if she has no income and is your dependent, there is no reason for her to file a return.  You would claim her 1098-T on your return.

[Carl]

My daughter is a college student who has no earned income.  

She has no need to file a tax return, unless she received a refund from the college for unused scholarships/grants in excess of $12,550.

She is a dependent of mine to support the college expense.  She received a 1098-T from the university for tuition.  Does she has to file for tax return?  

No. Since she qualifies as your dependent, you the parent report the 1098-T and all college expenses on your (the parent's) tax return.

We as parents paid her room & board using 529 fund and received 1099-Q this year.

Understand that there is no requirement for the parents to provide the student any support. Not a single penny. The support requirement is on the student, and is as follows:

If the student did not provide more than 50% of their own support for the entire tax year, then the parents qualify to claim the student as a dependent on the parent's tax return.

There are only two possible ways the student can provide more than half of their own support.

1) The student was self-employed or had a W-2 job and earned/was paid a sufficient amount to justify their claim to providing more than half of their own support. The amount earned/paid must be at least $1 more than the total of all other 3rd party income received by the student during the tax year. (scholarships, grants, 529 distributions, money from parents, gift from Aunt Mary, etc., are all 3rd party income and do not count for the student providing their own support.)

2) The student was the primary borrower on a qualified student loan and a sufficient amount was distributed to the student during the tax year to justify a claim to providing more than half of their own support. The amount distributed must be at least $1 more then the total of all 3rd party income received by the student during the tax year.

As for the 1099-Q, if every single penny was used for qualified education expenses and the allowed support expenses, then it doesn't have to be reported on any tax return. Otherwise, it gets reported on the tax return of the person whose SSN is listed on the 1099-Q. Then, it's only required if the recipient's total taxable income (including any potential 1099-Q funds) exceeds their standard deduction.