2006-10-16 16:10:41 · 5 answers · asked by lee f 1 in Business & Finance ➔ Taxes ➔ United States
You can't. Deductions only take effect if you owe taxes - if you have no or low income, you don't.
Deductions can only be taken in the year paid, not saved for later.
2006-10-16 17:55:37 · answer #1 · answered by Judy 7 · 1⤊ 0⤋
Federal Income Tax forms (1040, 1040A, 1040EZ) require income. That is what is taxed, income. No income, no income tax......period. You can't get any refundable credits (regardless what the other people say) if you have no income. And you can't apply mortgage interest paid in one year to income taxes for a different year. My hat's off to you for being to pay for a house and everything else with money you already have (I guess I'm envious), but sorry about the tax situation. You mean you have enough money to pay for mortgage and interest and living expenses, but you have no investment income? No dividends? No interest? These are forms of unearned income. You mean you have no unearned income either?
Be careful. If you are paying for a mortgage and the IRS can't figure out where the money is coming from (there is no bank account in your name that you are pulling out money from every month), they may wonder where you are getting the money. They could tax you on income even if you don't report it. It happens a lot with people who run businesses, but don't claim any of it. The IRS figures out how much they probably made and tax them on the whole thing. I'm not saying you fall into this category, but if you do, or if anyone you know does, warn them about this. You can run, but you can't hide from the IRS. Ever hear of Al Capone?
2006-10-17 00:43:01 · answer #2 · answered by TaxMan 5 · 2⤊ 0⤋
If you had no income, how did you pay your mortgage interest? Anyway, conventional wisdom would suggest that if you didn't have an income, you wouldn't be able to claim any deduction. Because there would be nothing to deduct from.
2006-10-16 23:18:21 · answer #3 · answered by LegattoAD 2 · 1⤊ 1⤋
You can keep and claim when you do have an income. Perhaps in 2007? Or you can claim and collect the same amount if you had an income.
2006-10-16 23:20:38 · answer #4 · answered by farzd 2 · 0⤊ 6⤋
You should fill out your tax return showing all deductions. You may qualify for tax credits and still get a refund even if you had no income.
2006-10-16 23:24:05 · answer #5 · answered by WJVV 4 · 0⤊ 5⤋