I have 3 kids and I'm unemployed, how should I file my income tax this year or should I file at all?
Thanks in advance for your help.
Answer:
You should file if you have at least a little income this year because you can claim the Earned Income Credit, addt'l child tax credit and to get back any taxes they withheld. Also if you collected unemployment, because that is taxable income but doesn't count to claim EIC. The form you need is 1040-A because you have dependents.
You should file. You might be eligible for an Eearned INcome Credit and actually get a refund. Im not sure which form to use.
If you've had any income at all, file. The IRS is a nasty thing to get on the wrong side of, especially if *they* have the facts wrong.
You might also qualify for an earned income credit, if you earned a small enough amount during the tax year.
My hunch is that your standard deductions will be more than any itemized ones, so the 1040EZ will handle it. If you actually *do* have deductions (like you've made your house payments, medical bills. casualty losses like theft, etc.), try the 1040 to see if your deductions come out to more than the standard deductions.
Best of luck to you.
Yes you should file your taxes. You will still be eligible for your earned income credit for each child. I was in the same situation and I received $4,225 for two children. I just took my W-2 form and they did the rest.
If your only income is Unemployment Compensation which would not have had withholding taken out and your total was less than $8,200 if you are single, $10,500 if you are Head of Household or $16,400 if your are married, you need not file. However you would want to file if you had any earned income (income in addition to Unemployment Compensation) as you would very likely get EIC, additional child tax credit and any withholding back. I would use form 1040, Schedule EIC and form 8812. If you have earned income go see a tax professional and have them determine what your refund would be. It does not cost anything if they determine that you do not need to file but it could cost you thousands in EIC if you do it incorrectly.
You did not mention a spouse. If there is none, byt there is a parent of the children with higher income it makes sence to "give" the exemptions for the children 1 or 2 or 3 to him/her.
Unemployment is taxable income and is reported to the IRS. You will most likely need to file and might owe taxes.
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