Do I have to file taxes every year if I have zero income?
So I'm completely independent for tax purposes, but last year I literally had zero income to report. The only form I got was a 1095-A because I have healthcare through the marketplace. I'm confused about whether I still need to file a tax return this year. Also wondering about future years - if I have another year with no income but don't get the 1095-A form either, would I still need to file then? I've heard different things from friends and family about this, and I don't want to get in trouble with the IRS for not filing if I'm supposed to. Anyone know the actual rules here?
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Sarah Jones
Even with zero income, you may still need to file a tax return depending on your specific situation. The 1095-A form indicates you received advance premium tax credits for health insurance through the marketplace, which means you absolutely need to file a return to reconcile those credits - regardless of having no income. For years when you have no income AND no 1095-A form (meaning no marketplace insurance with premium tax credits), the general rule is that you aren't required to file if your income is below the standard deduction threshold. With zero income, you'd be under that threshold, so technically no filing requirement. However, there are exceptions worth considering. If someone could claim you as a dependent and you had unearned income, different rules apply. Also, you might want to file anyway if you're eligible for refundable credits like the recovery rebate credit.
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Sebastian Scott
•What happens if you skip filing when you have a 1095-A? I got one last year but didn't file because I thought no income = no taxes. Am I in trouble?
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Sarah Jones
•If you received a 1095-A and didn't file, you should file as soon as possible. When you have marketplace insurance with premium tax credits (shown on 1095-A), filing is required to reconcile those credits, regardless of income. The IRS may hold up future premium tax credits until you file the missing return. For years with zero income and no 1095-A form, you generally aren't required to file, but there might be benefits to filing anyway, such as claiming any refundable credits you're eligible for or starting the statute of limitations clock on that tax year.
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Emily Sanjay
I was in a similar situation last year and found this amazing tool called taxr.ai (https://taxr.ai) that really helped me figure out my filing requirements. I was also confused about the 1095-A situation since I had marketplace insurance but minimal income. The tool analyzed my forms and gave me a super clear breakdown of exactly what I needed to do. It basically confirmed I needed to file because of the premium tax credit reconciliation, even though I was under the income threshold otherwise. What I liked is that it explained everything in plain English instead of tax jargon.
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Jordan Walker
•Does it actually tell you whether you legally have to file or just helps with the forms if you do file? I've got a similar situation but with a 1099-G for unemployment.
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Natalie Adams
•I'm skeptical about these tax tools. Is it actually free or do they hit you with charges after you upload your documents? Also, how does it handle state filing requirements which are different from federal?
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Emily Sanjay
•It actually tells you whether you're legally required to file based on your specific situation - it analyzes your forms and asks a few questions about your status. It would definitely help with your unemployment situation since 1099-G income usually creates a filing requirement. For your second question, the service is upfront about everything. They analyze your docs and tell you your requirements before you make any decisions. And yes, it handles state requirements too! It identified that I needed to file in my state even though my federal situation was borderline. The state rules are often different and it covers those distinctions.
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Natalie Adams
Just wanted to follow up about taxr.ai (https://taxr.ai) - I actually tried it after my skeptical comment. Seriously impressed! I uploaded my 1095-A and some other documents, and it immediately flagged that I needed to file because of the premium tax credit reconciliation, even though my income was below the filing threshold. It saved me from potentially having issues with future marketplace coverage. The tool gave me a complete breakdown of why I needed to file and pointed out a credit I was eligible for that I had no clue about. Definitely recommend for anyone in unusual tax situations trying to figure out if they need to file.
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Elijah O'Reilly
If you've been trying to call the IRS to get a straight answer about your filing requirements with the 1095-A situation, good luck getting through! I was in filing limbo for weeks trying to reach someone. Finally used this service called Claimyr (https://claimyr.com) that got me connected to an actual IRS agent in about 15 minutes instead of the usual 2+ hour wait or getting disconnected. They have this cool demo video showing how it works: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed I needed to file with the 1095-A even with zero income, and explained exactly which forms I needed. Saved me from potentially losing my marketplace insurance subsidies for next year. Was worth it just to get a definitive answer straight from the IRS instead of guessing.
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Amara Torres
•Wait, how does this actually work? Do they have some special connection to the IRS or something? I've been trying to reach someone about my 1095-A situation for weeks.
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Olivia Van-Cleve
•Yeah right. No way this actually works. The IRS phone system is deliberately designed to be impossible to navigate. I've called 20+ times this year and never got through. Sounds like a scam to collect phone numbers.
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Elijah O'Reilly
•They don't have a special connection to the IRS - they use a technology that navigates the phone system and holds your place in line. When they're about to connect with an agent, you get a call so you can take over. It's basically like having someone wait on hold for you. I was skeptical too, but it absolutely works. I spent weeks trying on my own and getting nowhere. With Claimyr, I was talking to an actual IRS agent in about 15 minutes. The agent confirmed I needed to file with my 1095-A situation and explained exactly what forms I needed. Nothing scammy about it - they just solved the hold time problem.
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Olivia Van-Cleve
I have to admit I was completely wrong about Claimyr. After posting that skeptical comment, I decided to try it anyway since I was desperate to resolve my tax situation with the marketplace insurance. Holy crap, it actually worked! I got connected to an IRS representative in about 20 minutes after trying unsuccessfully for weeks on my own. The agent confirmed that yes, I absolutely had to file with a 1095-A even with zero income, and explained how to report it properly. They even helped me understand how to handle my previous year where I didn't file but should have. Saved me from potentially losing my insurance subsidies and having to pay them all back.
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Mason Kaczka
Just to add some info - the filing requirement with a 1095-A is specifically because of the Premium Tax Credit (PTC). If you received advance payments of the PTC (which appears on your 1095-A), you MUST file Form 8962 with your tax return to reconcile those advance payments, regardless of your income level. Without filing, you risk losing eligibility for the credit in future years.
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Drake
•Thanks for all the replies! Question tho - I'm looking at my 1095-A now, and there are zeros in column C (advance payment). Does that mean I didn't receive advance payments and don't need to file?
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Mason Kaczka
•That's an important detail! If column C shows zeros throughout, it means you didn't receive advance payments of the Premium Tax Credit. In that case, if your income is below the filing threshold and you have no other filing requirements, you wouldn't be required to file just because of the 1095-A. However, you might still want to file to claim the Premium Tax Credit now if you were eligible, as this could result in a refund. The only way to claim this credit is by filing with Form 8962, even if you weren't required to file otherwise.
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Sophia Russo
Something nobody's mentioned - even if you're not required to file, sometimes it's smart to file anyway. It starts the statute of limitations clock running (generally 3 years), after which the IRS can't come back and audit you for that year. Without filing, that clock never starts!
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Evelyn Xu
•Is this really true? Why would the IRS audit someone with zero income anyway? Seems like extra unnecessary work to file if you don't have to.
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Amina Diallo
•You're right that it seems unlikely the IRS would audit someone with zero income, but the statute of limitations protects you from more than just audits. For example, if there were any unreported income sources you forgot about, or if the IRS had records of income you didn't report (like a 1099 that got lost in the mail), they could theoretically assess additional taxes indefinitely without a filed return. Filing a return - even showing zero income - closes that window after 3 years. It's basically insurance against unknown issues, plus you might be eligible for refundable credits you didn't know about.
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