So, like the EITC, you could end up with a nice refund check by filing a return just to claim the this credit. If you are a nonresident living and earning money in the United States, you may be required to file a U.S. tax return. Learn more about getting an ITIN for federal tax reporting. U.S. citizens or Green Card holders living abroad must pay U.S. income tax on their worldwide income. If you earned little to no income over the course of a year, though, it’s a chore you may be able to avoid. As with the EITC and child tax credit, the IRS has an online tool to help you figure out if you're eligible for the American Opportunity credit.
You will need to file a U.S. tax return depending on your: Review this list of five situations to learn more about who must file. Other tax credits that may apply include the additional child tax credit, the premium tax credit, the health coverage tax credit, the American opportunity credit and the federal tax credit on fuels. (With a "nonrefundable" credit, you don't get a refund because the tax you owe isn't reduced below zero.) If you’re filing as single, you need to file if your income is more than the standard deduction, which is $12,000. TurboTax: Can I File an Income Tax Return If I Don't Have Any Income. That also means that your refund will be smaller (or eliminated) if the advance credit payments are greater than your actual allowable credit. She specializes in business, personal finance, and career writing. The amounts you report on your U.S. tax return must be in U.S. dollars. But, you must file a tax return to claim a refundable tax credit or a refund for withheld income tax. However, if advance credit payments were made to your insurance company and your actual allowable credit is less than your advance credit payments, the difference is generally subtracted from your refund or added to the tax you owe. The IRS has an online tool to help with that. The American Opportunity credit covers expenses for students who are in their first four years of college. Specifically, it is available to (1) people eligible for Trade Adjustment Assistance allowances because of a qualifying job loss, and (2) people between 55 and 64 years old whose pension plans were taken over by the Pension Benefit Guaranty Corporation. The EITC is the first of several refundable credits that we'll discuss. If you don't owe any tax – and, therefore, aren't required to file a return – then it only makes sense that any taxes you already paid should be refunded to you. The premium tax credit is another refundable credit. It can also apply to other earnings including alimony, interest, or dividends. If you are a foreign student, use this reference guide to learn more about the special rules that apply to your U.S. income, IRS's tax guide for individuals who aren't citizens, As a Green Card holder or U.S. citizen living abroad, you can use the same forms (.
The credit is available for people with household incomes ranging from 100% to 400% of the federal poverty level. Green Cards and Permanent Residence in the U.S. U.S. Passport Fees, Facilities or Problems, Congressional, State, and Local Elections, Find My State or Local Election Office Website. Do You Have to Vote for the Party You're Registered With? Filing your federal income taxes can be a chore. As with the other credits we've mentioned, the health coverage credit is refundable.
The 2020 Stimulus Check is based on your income from your most recent tax return. If an employer withheld federal income taxes from your paycheck last year, or taxes were withheld from other sources of income in 2019, you might be entitled to a refund if you file a tax return before the July 15 deadline.