Any tax gurus out there ... can students file tax returns with no income?

[mshheaddoc]

Ok, here is my question ... Can you file if you have no income? I don't think you can and the IRS hung up on me (By accident of course, but I'm not waiting again, I have exams)

I wanted to try to get
*mortgage interest
*Tuition
*Life learning credit
*house purchased (points) credit

I think I'm trying to milk it too much but seriously, when you need money, you need money. Loans aren't technically income per the US of A so any help (advice) any of you have would be FANTASTIC!

Thanks,

Your friendly Mushy-monster

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[tigress]

I don't get it. You didn't have an income, so you didn't pay taxes, right? So what are your credits going towards? Aren't those tax credits that lower your tax bracket or something? I admit I'm definitely no expert, but this confuses me a lot.

Oh and thanks for the PM, I'll get back to you

 

[blee]

If loans don't count as income, and if you didn't earn any money in any other way, then you have no money going in. This means that you owe the IRS absolutely nothing. This, of course, means that you did not pay them anything more than you owe. If they don't have any of your money, they have no refund to give you when you do your taxes.

So, assuming that loans don't count, the answer is no. Did you seriously buy a home without any income? :O

 

[mshheaddoc]

I don't get it. You didn't have an income, so you didn't pay taxes, right? So what are your credits going towards? Aren't those tax credits that lower your tax bracket or something? I admit I'm definitely no expert, but this confuses me a lot.

Not income taxes per se, but other taxes (mostly state/city/property). I'm wondering if its worth it to file federal and state if you can something back from the state. I agree, it doesn't make sense to file if you have no "income" on the W-2 but I'm just curious if anyone has.

 

[blee]

Not income taxes per se, but other taxes (mostly state/city/property). I'm wondering if its worth it to file federal and state if you can something back from the state. I agree, it doesn't make sense to file if you have no "income" on the W-2 but I'm just curious if anyone has.

Never thought of that (after my long-winded definitive response, go me). I mean, the worst case is that you will file and receive nothing. Or that they will audit you for having a suspicious tax return.

 

[mshheaddoc]

If loans don't count as income, and if you didn't earn any money in any other way, then you have no money going in. This means that you owe the IRS absolutely nothing. This, of course, means that you did not pay them anything more than you owe. If they don't have any of your money, they have no refund to give you when you do your taxes.

So, assuming that loans don't count, the answer is no. Did you seriously buy a home without any income? :O

Well this isn't for me but it might be next year. My new husband is whom I was curious to see (i've always had a job so I always have filed taxes since I've been 21 - granted my dad did them but I watched and helped him). I imagined that is how it worked but hey, when you want to milk it, you have to milk it for all its worth. We should have gotten married on Dec 31st

If you have a cosigner you can get a mortgage while in school with no income. Small downpayments are great, so is the federal mortgage program

 

[mshheaddoc]

Never thought of that (after my long-winded definitive response, go me). I mean, the worst case is that you will file and receive nothing. Or that they will audit you for having a suspicious tax return.

well if they audit then they'll see he has no income b/c he's a med student so ... oh well.

 

[tigress]

If you have a cosigner you can get a mortgage while in school with no income. Small downpayments are great, so is the federal mortgage program

Have you done this? We're trying to figure out how feasible it is. If neither of us have an income, but we get my parents to co-sign, could we get a mortgage? And would it be a horrible rate or something? I guess we could try to do it while I'm still working, but the plan is to move the month after I stop.

 

[mshheaddoc]

Have you done this? We're trying to figure out how feasible it is. If neither of us have an income, but we get my parents to co-sign, could we get a mortgage? And would it be a horrible rate or something? I guess we could try to do it while I'm still working, but the plan is to move the month after I stop.

I can give you a few tips on how to do it but it depends on how you work it. You can apply for the mortgage while your working and do a stated income. Its not a bad rate with parents to co-sign if they have good credit. I was going to cosign with him (I had a job at the time) but he just got his parents to cosign they got a decent fixed rate. It also depends on how good your credit is.

 

[tigress]

I don't have any credit. I have an absense of credit. My husband has good credit from repaying undergrad loans long before they were due. My parents have great credit.

We're looking into a condo if I decide to go to school where we already are. We'll be here for at least 5 more years and potentially more like 8, what with fellowships and everything. Not sure, though. It may make more sense to continue renting for now.

 

[PhDtoDO]

Always file.

Trust me, when you do start filing you might get red flagged so even when you don't have income, file.

For many types of deductions, you can take them for a couple of years....like charity donations...so when you do have an income you can bank on these, especially if you own a house.

Best to stay in the habit and stay out of the IRS's spot light.

Trust me. Not filing is not smart....unless your some college kid that doesn't know any better.

Just my opinion,

-s

 

[kellie000]

Always file.

Trust me, when you do start filing you might get red flagged so even when you don't have income, file.

For many types of deductions, you can take them for a couple of years....like charity donations...so when you do have an income you can bank on these, especially if you own a house.

Best to stay in the habit and stay out of the IRS's spot light.

Trust me. Not filing is not smart....unless your some college kid that doesn't know any better.

Just my opinion,

-s

Also interesting to note, that the IRS has three years to audit you from the date you file. If you do not file for a year, that "start" timer never happens and they can ask to see records from that year pretty much indefinately. Not that it's likely, just something to think about.

Also, I doubt that you will get money back from filing a fed tax return since none of your credits would be what they call "refundable." That being said, many of them should carry over for a few years for when you do make money, though you should speak with someone involved with tax accounting to know which ones and for how long (or the IRS site will tell you, it's just not a light read).

Kellie

 

[cosmo]

Get a job for a week or two, then quit. You will get a W-2 and will for sure be able to file.

 

[kellie000]

Get a job for a week or two, then quit. You will get a W-2 and will for sure be able to file.

You can always file, that's not a question, the question is should they.

 

[scpod]

You can always file, that's not a question, the question is should they.

Actually, holding a job for a short time is something to consider because of the Earned Income Credit (EIC). Many people don't realize it, but people who have a low paying job and never actually pay any taxes can still get a refund when they file their tax forms. In fact, some people intentionally work just a few hours a week so that they don't get any taxes taken out of their check and their income will be low enough to qualify for the EIC. Then, come tax time, they file a return and get a check from the government just like everybody else. If you are between the ages of 25 and 65 with low income in 2005 you can get up to $4400 with two kids, $2662 with one kid, and $399 if you are childless.

 

[Sol Rosenberg]

Ok, here is my question ... Can you file if you have no income? I don't think you can and the IRS hung up on me (By accident of course, but I'm not waiting again, I have exams)

I wanted to try to get
*mortgage interest
*Tuition
*Life learning credit
*house purchased (points) credit

I think I'm trying to milk it too much but seriously, when you need money, you need money. Loans aren't technically income per the US of A so any help (advice) any of you have would be FANTASTIC!

Thanks,

Your friendly Mushy-monster

You can't get back from the IRS more than you earned. You can only make deductions that total an amount less than or equal to your adjusted gross income. Therefore, if your income is 0, your maximum deduction is 0. Someone else posted about the EIC (AKA the IRS's way of saying "Thanks for trying.") You might be able to claim that with only a small amount of income, but I don't know.

 

[LovelyRita]

I haven't filed all through med school. I found something in the guidelines that said if you make more than $3000 you have to file. Student loans don't count.

 

[box29]

For real? Does this include state taxes?