Can income tax be 0?

You didn't have any prior year tax liability if your total tax was zero or if you didn't have to file an income tax return. Your total tax was zero 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.S.

Tax Return Department of Education for the elderly was zero. Any year in which you have minimal or no income, 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 a good idea 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.

While having a zero-tax bill isn't a new phenomenon, it could be more pronounced this year due to a variety of temporary changes in the tax code, said Elaine Maag, principal research associate at the Urban-Brookings Tax Policy Center. This could consist of 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%. 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.

Bill Klette
Bill Klette

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