My family and I have been living off loans and grants for this year. Are there any refunds available for filing a tax return?
Last year I made 16,000 and received over 5000 in refunds.
I have three children under 6.
Thank you for the advice.
2007-10-12 02:33:22 · 7 answers · asked by nwaff102 1 in Business & Finance ➔ Taxes ➔ United States
In addition to what the other answerers have said, I should add that it is possible that some of your grant money could be taxable. It will not qualify you for a refund, but it is POSSIBLE, though not likely, that you could OWE tax. Check with a tax professional experienced in this field. They should only need to take a quick look at your education expenses and grant info to tell, and it shouldn't cost you anything for them to tell you whether or not you have to file. If it does, run away and go to someone who won't charge you for such information. You should only pay a tax pro if you file a return. I don't mean to scare you, but it's better to find out now than get caught later - way better.
2007-10-15 03:25:58 · answer #1 · answered by Katie Short, Atheati Princess 6 · 0⤊ 0⤋
"Refundable" credits (meaning you can get the money back in addition to your tax refund) are only available if you have an income. The Earned Income Credit and the Additional Child Tax Credit are examples of refundable credits. You must have an income in order to receive these.
2007-10-12 09:49:05 · answer #2 · answered by Anonymous · 1⤊ 0⤋
If you don't have any taxable income, then you have no tax and therefore no child tax credit (and no additional child tax credit). You won't be eligible for EIC either, so this year the good news is you don't have to file or have any reason to file, the bad news is that you won't get a refund.
2007-10-13 01:33:52 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
No.
The two "refundable" credits (Earned Income Credit and the Additional Child Tax Credit) are only available if you have "earned income". Earned Income is defined as income from wages or self-employment.
2007-10-12 09:42:53 · answer #4 · answered by Wayne Z 7 · 2⤊ 0⤋
It is amazing how the income tax system became an entitlement program for a large portion of the population.
2007-10-12 11:05:54 · answer #5 · answered by ? 6 · 1⤊ 1⤋
If you have no earned income you don't qualify for the EIC. Sorry.
2007-10-12 10:53:13 · answer #6 · answered by Bostonian In MO 7 · 1⤊ 0⤋
if you are entitled to the child tax credit, you will get it regardless of any other refunds. If you don't owe any taxes you will still get the credit $$ back because it is dollar for dollar tax credit and not just a deduction.
2007-10-12 09:42:43 · answer #7 · answered by KCJ 1 · 0⤊ 6⤋