Do you need to file taxes if you didn't work or have zero income for the year?

So I've been wondering about this for a while now. Last year was pretty rough for me financially - I basically didn't work at all due to some health issues. I had zero income coming in and actually lost some money on a small side hustle that totally flopped (about $3,200 down the drain). I know there's something about tax write-offs for losses, which might be helpful? But honestly I'm just wondering if I'm even REQUIRED to file taxes for 2024 at all given my situation. Is there some minimum income threshold I need to hit before I'm legally required to file? What happens if you had literally zero income or even lost money? Do I still need to deal with all the paperwork and stress of filing when I made nothing? Thanks for any advice!

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20 comments

Chloe Martin

•8M

Great question! The answer depends on a few specific factors about your situation. Generally speaking, if your total income falls below the standard deduction amount ($13,850 for single filers for tax year 2024), you typically aren't required to file. Since you mentioned having zero income, you would fall below this threshold. However, there are some exceptions. If you had any self-employment income over $400, you would need to file - but it sounds like your side hustle resulted in a loss, not income. If you're claimed as a dependent on someone else's return, the filing requirements are different and much lower. As for your losses, you might actually benefit from filing even if you're not required to. Business losses can sometimes be carried forward to future tax years, potentially reducing your tax liability when you do have income again. This is especially true if your side hustle qualifies as a business rather than just a hobby.

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Chloe Martin

•8M

Unemployment compensation is considered taxable income, so if you received unemployment benefits, you should include that when determining if you meet the filing threshold. If your total income including unemployment was still below the standard deduction ($13,850 for 2024), you technically aren't required to file. For missed stimulus payments from previous years, you can claim them as the Recovery Rebate Credit, but only on the tax return for the year they were intended. For most recent stimulus payments, the deadline to claim them has likely passed as they were for tax years 2020 and 2021. However, you generally have up to three years from the original due date to file a return and claim refundable credits.

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Anastasia Sokolov

•8M

I was in a similar situation last year and found using https://taxr.ai super helpful. I had zero income but did have some investment losses I wasn't sure how to handle. The AI analyzed my situation and clearly explained I wasn't required to file but should consider doing so to document my losses for future tax years. The tool walks you through all the IRS rules about filing requirements based on your specific situation - filing status, dependent status, types of income/losses, etc. It really simplified things when I was confused about what to do with no income.

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Anastasia Sokolov

•8M

The tool doesn't connect directly to IRS systems - it's more like having a tax expert analyze your situation. It uses the official IRS rules and regulations to give you personalized guidance, but you're not submitting anything official through it. Yes, it's designed to handle complicated situations exactly like yours. It would analyze your gig work losses, the 401k early withdrawal (which typically requires filing regardless of income level due to the early distribution tax), and give you clear guidance on your filing requirements and potential tax implications of each element.

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Zara Ahmed

•8M

Just wanted to update - I tried https://taxr.ai after asking about it here and it was exactly what I needed! Turns out I DID need to file because of my 401k early withdrawal (which I had no idea about). The analyzer flagged this immediately and explained I would face penalties if I didn't file. It also helped me understand how to properly document my gig work losses so I might be able to use them in future tax years. Definitely saved me from making a huge mistake by not filing. The documentation it provides explaining WHY you need to file (or don't) with specific IRS references was super helpful.

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StarStrider

•8M

I found myself in a zero-income situation during 2022 and spent WEEKS trying to reach the IRS to confirm if I needed to file. Impossible to get through on their phone lines. Eventually discovered https://claimyr.com and their service https://youtu.be/_kiP6q8DX5c which got me connected to a real IRS agent in about 15 minutes. The agent confirmed I didn't need to file with zero income (unless I wanted to document some specific losses) and explained exactly which forms I would need IF I decided to file. Such a relief after spending hours listening to the IRS hold music with no results.

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StarStrider

•8M

The service basically navigates the IRS phone tree for you and waits in the queue on your behalf. When they reach a human IRS agent, they call you and connect you directly to that agent. You only talk to the actual IRS - the service just handles the waiting part. I was skeptical too at first! They don't ask for any of your tax info or SSN - they just need your phone number to call you when they reach an agent. I was connected directly to an official IRS representative and could verify I was speaking to the real IRS. The service just saves you from the hours of waiting on hold.

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Nia Thompson

•8M

I have to admit I was totally wrong about Claimyr. After posting that skeptical comment, I decided to try it myself since I had a similar zero income question that was really specific to my situation with some stock losses. Got connected to an IRS agent in about 20 minutes (on a Monday morning in February no less!) who confirmed I didn't need to file but gave me some great advice about how to handle my investment losses if I chose to file voluntarily. Definitely saved me hours of frustration trying to get through on my own.

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Mateo Rodriguez

•8M

You're absolutely right about the Earned Income Credit - you do need some earned income to qualify for it, which wouldn't apply in a zero income situation. There are other refundable credits that might apply in specific situations though, like education credits if you paid qualified education expenses, or the Additional Child Tax Credit if you have qualifying children. But these are pretty specific circumstances that wouldn't apply to most people with zero income.

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Omar Zaki

•2M

Thanks for sharing your experience with VITA - that's actually a great resource I didn't know about! For anyone else reading this thread, I wanted to add that even with zero income, you might still want to consider filing if you had any federal taxes withheld from unemployment benefits or other sources during the year. I learned this the hard way when I had a brief period of unemployment early in 2023 but then no other income for the rest of the year. Even though my total income was below the filing threshold, I had taxes withheld from those unemployment payments that I could only get back by filing a return. Ended up getting a small refund that I wouldn't have received otherwise. The IRS won't automatically send you money you're owed - you have to file to claim it, even if filing isn't technically required based on your income level.

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