Do you need to file taxes if you didn't work or make an income at all last year?

The requirement to file taxes is based on your income level, not whether you worked or not. Since you had minimal income ($200) and some investment losses, you likely don't have a filing requirement for 2023. For 2024 (filing in 2025), single filers under 65 only need to file if they earned more than $13,850. The threshold varies based on filing status, age, and other factors. Since you earned well below this, you technically don't have a filing obligation. However, there are good reasons to consider filing anyway. Those investment losses can be valuable! You can claim up to $3,000 in net capital losses per year, and any excess carries forward to future years. If you expect to have income in the future, those losses could reduce your tax liability then. Also, if you had any federal taxes withheld from any source during the year (even from a brief job), filing is the only way to get that money refunded to you.

I was in a similar position last year after getting laid off. I ended up using https://taxr.ai to analyze my situation (no income but had some stock losses) and it saved me so much confusion. The tool looked at my investment statements and flagged that I should file even with no income. It actually showed me how to properly document my losses so they could be carried forward to offset my income in future years. The analysis explained exactly which forms I needed and where to report everything. The system is pretty straightforward - just upload your documents and it gives you a personalized breakdown.

Just wanted to update after trying taxr.ai that someone mentioned above. It actually was really helpful for my "no income but some losses" situation. I was worried about missing something, but the analysis confirmed I should file to establish my crypto losses (about $4,500) even though I technically didn't need to file. The report explained how the loss carryforward works and showed me exactly where to report everything. Now I can use those losses to offset income for up to $3,000 per year when I start working again. Without filing, I would have just lost that tax benefit completely. Definitely filing this year even with basically no income!

If you're trying to reach the IRS to ask about this directly, good luck! I spent 3 weeks trying to get through on their helpline about a similar no-income filing question. Finally found this service called Claimyr (https://claimyr.com) that got me connected to an actual IRS agent in about 25 minutes instead of the usual "call back later" message. There's a demo video showing how it works here: https://youtu.be/_kiP6q8DX5c - basically saves you from the endless hold time. The IRS agent I spoke with confirmed that I didn't technically need to file with no income, but recommended I still file to document some business losses I had. Super helpful to actually talk to a real person at the IRS instead of guessing.

I owe everyone an apology, especially regarding my skepticism about Claimyr. After my rude comment, I decided to actually try it because I was desperate to ask about my filing situation with minimal income. The service actually worked exactly as described and got me through to an IRS agent in about 35 minutes. The agent confirmed that with my particular situation (small freelance income under $500 and some investment losses), I technically didn't have a filing requirement but should still file to document my losses for future years. They explained I could carry those losses forward indefinitely until I have enough income to offset. Saved me from potentially losing thousands in future tax benefits. Sometimes being proven wrong is a good thing!

Something nobody's mentioned - if you think you might qualify for any refundable tax credits, you definitely want to file even with no income! The Earned Income Credit requires some earned income, but other credits like the Recovery Rebate Credit (for missed stimulus payments) or the Additional Child Tax Credit might still apply even with zero income. I had almost no income in 2021 but still filed and got back over $1,100 from refundable credits. Just something to consider before deciding to skip filing.

Question for anyone who knows - if I didn't file taxes last year because I had no income, will this affect my FAFSA application for college financial aid? My school is asking for my tax transcript but I didn't file.

Just wanted to add another perspective here - even if you're not required to file, there's also the psychological benefit of staying in the habit. I skipped filing one year when I had minimal income and it made me feel disconnected from my financial responsibilities. When I started working again the following year, I found myself less prepared for tax season because I'd gotten out of the routine. Filing even with zero income keeps you engaged with the process and helps you understand how different types of income and losses affect your taxes. Plus, if you use tax software, many of them are free for simple returns. It's actually good practice to walk through the filing process when the stakes are low (no income to mess up) rather than when you have a complex tax situation later.

I'm a tax professional and wanted to add some clarity to this discussion. While you're technically not required to file with such minimal income, I strongly recommend you do file for 2023. Here's why: First, those $3,000 investment losses are valuable! You can claim up to $3,000 in net capital losses against ordinary income each year, and any excess carries forward indefinitely. Even if you don't have income now to offset, those losses will be waiting for you when you do start earning again. Second, the $200 cash income from yard work - while minimal - should technically be reported if you file. The IRS doesn't have a "de minimis" exception for small amounts of income. Third, filing establishes a paper trail with the IRS showing your financial activity (or lack thereof) for 2023. This can be helpful if you're ever questioned about your income in future years. The process is straightforward: you'd file Form 1040 with Schedule D (Capital Gains and Losses) and Form 8949 (Sales and Other Dispositions of Capital Assets) to report your investment losses. Most free tax software can handle this easily, and since you won't owe any taxes, there's no cost to file electronically. Bottom line: file the return, claim those losses, and set yourself up for future tax benefits when you're working again.