Sunday, October 11, 2009

Will i get child tax credit with no income in 2007.?

i mean can i file taxes with no income and still get child tax credit as head of household in 2007.

Will i get child tax credit with no income in 2007.?
All tax credits are based on income. If you had no income to report on your tax return, you will not be able to get the Child Tax Credit, Additional Child Tax Credit, or Earned Income Credit.





The last two credits are based only on earned income, usually wages.
Reply:No, with no income you can't file taxes, and don't get the child tax credit. It's a non-refunfable credit, which means it only lowers your tax by the amount of the credit, you don't get any excess as a refund. You have no income, so no tax, so no child tax credit.
Reply:The Child Tax Credit is a non-refundable credit. If you had no income and therefore no tax liability there would be no value to the credit.
Reply:Before you assume no income,you might consider any work you may be doing under a barter arraingement,such as cleaning the house and preparing the meals for the owner of the house you are staying in,if they let you live there for free. Barter income is taxable and can be used to qualify for EIC/Child Tax Credit (as self employment income, so you'll have to pay Social Security and Medicare Taxes which will reduce your EIC/Child Tax Credit). It is not a cut and dry method, so check with a tax professional before filing to see if you qualify. It's also not to late to start working to qualify for the EIC. BTW, you can only claim head of household when you provide for more than half of the expenses for you and the child(ren). If you have no income, you are not head of household. You also cannot "sell" your children to someone else so they can claim them on their tax return (that's fraud). The person claiming your kids should be whoever is paying the bills, but they must either have a blood (closer than cousin) or legal (marriage/step) relationship to the child (divorce does not end the step-child status if the kid still lives with the step-parent) to claim things like EIC and Child Tax Credit. They can still claim them as dependents, just not the extra stuff. These rules changed for the 2005 tax season, so if someone tells you otherwise,make sure they know about the Uniform Definition of a Child rules (if they don't, they are behind the times).
Reply:Child Tax Credit reduces the tax payable by you. You cannot take this credit because there is no tax to reduce.


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