Access up to $5,200 with 1 kid and up to $9,000 with 2 kids for your 2022 taxes.
If you did not earn any income this year, unfortunately, it will not be worthwhile to file your taxes at the federal level for any of the refundable tax credits. Currently the tax credits require earned income to get the refundable tax credits. However, you may want to check to see if your state has any tax credits that do not require earned income to receive a refund.
That said, did you file your taxes in 2022? The tax laws were different last year, and there were lots of credits that didn’t require you to have earned income to get them. So, if you haven’t filed for that year yet, you should consider it! (There’s a tool within our app that helps you estimate your credits from that year to see whether it’s worth it to file.)
Fun fact: you can file for up to 3 previous years and get a refund for prior year taxes. Typically, you have 3 years to file a prior year tax return or amend one if you were eligible for a refund.
Also, if you are in a situation where you don’t have money from work, but do have other income or think you must file a tax return, make sure you check with your tax advisor to make sure you file if you should. You want to be sure you are not incurring any fees or penalties by not filing.
Tax credits are reductions to how much tax you owe. There are two types of tax credits: refundable and non-refundable.
Refundable credits means you can get the dollar amount back even if you don’t owe any taxes. The Earned Income Tax Credit is an example of a credit like this. This means that even if you don't owe any taxes, you can get this credit back as cash.
Non-refundable credits means you can use the dollar amount to cancel out your taxes owed (aka your tax liability). Non-refundable credits can't come back to you as a cash refund though. For example, if you owe $500 in taxes, and have $1,000 of non-refundable credits, your tax liability would be canceled out ($1,000 > $500), but you wouldn't get the remaining $500 back. If you owe $1,250 in taxes instead, you'd get to use it all and then only pay $250 in taxes.
We have a tax care team ready for any questions or concerns that come your way. Simply log in and go to your support tab in the app. Choose “text my care team”, and you will be prompted to text us with your questions or concerns.
You can expect to hear back via text in 1-2 business days at the latest.
This year a couple things have changed. The first one is that there was no stimulus check payment in 2022 so that cannot be claimed on your tax return.
For most people the big change will be in how the Child Tax Credit will be calculated. This year you will need to have earned income to take advantage of this credit, whereas last year you didn’t need to have made any money from work to get it. You also will need to have made money from work to get the Earned Income Tax Credit. To find out more about the changes, check out https://smartasset.com/taxes/all-about-child-tax-credits
The last big change is that the Child and Dependent Care Credit is changing back to its old calculation, which means that you will need to owe taxes to actually be able to benefit from it. It is a non-refundable credit, which means it never comes back to you as cash in your refund and instead only decreases the amount of taxes you owe. The tldr here is that if you make very little income, this credit won’t be able to help you this year.
All information on this site is provided for educational purposes only and does not constitute legal or tax advice. Let's Get Set is not liable for how you use this information. Please seek a tax professional for personal tax advice.