Total Tax is Zero

JonBoy27 · ‎February 5, 2023

Hello,

I am about to file my taxes. Due to being a lower income earning family, my effective tax rate is usually in the negatives (e.g. -4.29%). This has been the case for most of the last decade. However, I noticed on my TurboTax summary form this year, it said my Total Tax is $0. Even in previous years with a negative tax rate I have always had a positive number for Total Tax. Has something changed? Is this going to somehow get flagged?

DanaB27 · ‎February 6, 2023

Having the total tax as $0 is a good thing. It seems that the standard deduction (or itemized deduction) and nonrefundable credits lowered your total tax to $0. The standard deduction increases each year. No, it won't get flagged if your total tax is $0.

Generally, your total tax cannot be lower than $0. But you might get more back than you paid in if you qualify for refundable credits.

Please see What Is the Difference Between a Refundable and a Nonrefundable Credit? for additional information.

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