If you do not have any form of taxable income on your tax return, the IRS E-file system may reject your return. This is because it will read it as an empty tax return.
Some people are not required to file returns but choose to file so they have a tax return on record for personal and/or legal reasons.
How do I file a return with $0 taxable income?
If you still want/need to file a federal tax return you should go into the Income section of the program and make a $1 entry for Interest Income.
To do this go to:
- Federal Section
- Income
- 1099-INT, DIV, OID
- Did you earn any interest or dividend income from a bank, brokerage firm or some other financial institution?
- Interest Income Form 1099-INT > enter your name in the box labeled "Payer's Name" and enter $1 for "Interest Income (Box 1)."
- Press continue to save the information to your tax return
This will have no bearing on the return. However, it will allow the IRS computer to read an entry on one of the required lines and therefore be able to process the return for you.
What if my only income is from Social Security?
If the only income that you had was from Social Security benefits, most likely these benefits are not considered taxable income. You are not required to file a tax return.
For more information about who must file a return, please reference the IRS Form 1040 Instructions.