Do you need to file taxes if you didn't work or make any income this year?

Thanks for clarifying! I didn't have any withholding since I didn't work at all, but that point about documenting the business loss is really interesting. I didn't know you could carry forward losses to future years. Do you know how many years you can carry it forward? And would I need to file a bunch of special forms, or is it pretty straightforward?

You can typically carry business losses forward for up to 20 years, which gives you plenty of time to use them when you're earning income again. The IRS calls this a Net Operating Loss (NOL). The process isn't super complicated. You'll file a regular return with Schedule C showing your business activity and loss for the current year. When you file in future years, you'll need to include Form 1045 or 1040X to apply the previous losses. It's definitely worth the small effort now to potentially save tax dollars in the future.

How accurate is it? I've tried other tax software and they often miss things or give weird recommendations. Did it actually help with figuring out the right forms for claiming losses when you don't have income?

I'm curious - does it work for more complicated situations? I have zero W-2 income but did some gig work that didn't generate 1099s because it was under the threshold. Would it help determine if I need to file in that case?

It's been spot-on for me. It correctly identified all the forms I needed including Schedule C for business losses and told me exactly how to document everything properly so I could use the losses in future years. For your situation with gig work under the 1099 threshold, it would definitely help. The system specifically asks about all types of income, even amounts below reporting thresholds. It told me that even with small amounts of gig work, you're technically supposed to report that income on Schedule C as self-employment income.

How does this even work? I've tried calling the IRS like 50 times and always get the "try again later" message. Does this service actually get you through or is it just another way to get generic advice?

Sounds fishy to me. Why would anyone be able to get through to the IRS when their lines are always jammed? And why would you need this if you can just get free tax advice from any tax preparer? Seems like a waste of money to me.

It uses a technology that continually redials and navigates the IRS phone tree for you. When it gets through, it calls your phone and connects you directly to the agent. You don't have to do anything except answer when your phone rings. It's not generic advice - you're talking to an actual IRS agent who can see your tax records and give you official guidance specific to your situation. Tax preparers can give general advice, but they can't access your IRS records or provide official IRS positions on specific questions. I needed to know if my particular situation required filing, and only the IRS could give me a definitive answer.

That's a good point I hadn't thought about. I'm definitely not a dependent on anyone's return (I'm 31). But you're right about state taxes - I'm in Texas so I think we don't have state income tax, but I should double check.

Texas doesn't have state income tax, so you're good there. Just wanted to mention it because so many people forget about state requirements which can be totally different from federal!

Great point about credits. For 2024, there aren't stimulus payments like during COVID, but depending on your situation, you might qualify for credits like the Recovery Rebate Credit (if you missed previous stimulus payments) or certain educational credits if you were taking classes. Even with zero income, you might qualify for the Earned Income Tax Credit if you had any income at all in the previous 3 years and meet certain other requirements. This is called the "lookback rule" and it's often overlooked.

Thanks for that info! I'd completely forgotten about the lookback rule for EITC. That's definitely something OP should look into if they had income in previous years.

That's actually really helpful - I am planning to apply for some assistance programs and didn't think about needing proof of my (lack of) income. Definitely another good reason to file. Thanks for sharing your experience!