If your total tax was zero or you didn't have to file an income tax return, then you didn't have any prior year tax liability. This is true if the line labeled as total tax on Form 1040, U. S. Individual Income Tax Return.
Department of State, or on Form 1040-SR, U. Tax Return Department of Education for the elderly was zero. If you had minimal or no income in a given year, you may be able to skip filing your tax return and related documentation. However, it's perfectly legal to file a tax return that shows zero income, and this could be beneficial for several reasons. With TurboTax, you can be sure that your taxes are done correctly, from simple to complex tax returns, no matter what your situation is.
This year, due to a variety of temporary changes in the tax code, such as raising the maximum marginal income tax rate to 39.6% from the current 37% and changing the maximum capital gains tax rate to 39.6%, also from 20%, having a zero-tax bill may be more pronounced than usual, according to Elaine Maag, principal research associate at the Urban-Brookings Tax Policy Center. Even if you earned income last year, if it falls below the IRS minimum, you don't have to file a tax return. The IRS offers a number of tax credits that you can deduct directly from your taxes instead of your income, such as a deduction.
