Do You Need to File a Tax Return If You Have No Income?

For many who recently encountered the U.S. tax system, the question of filing a return with no income is very relevant. Is it necessary to report to the tax authority if there was no income during the reporting period?

What does the IRS say about this, and what’s best to do to avoid problems with the law? We’ll examine this further in the article.

When Is Filing a Return Not Mandatory?

According to U.S. federal law and the IRS, if a person didn’t receive income during the previous tax year, there’s no need to file a tax return. It’s also not mandatory to declare income if there were insignificant earnings, the amount of which doesn’t exceed the standard deduction.

However, in some cases, even if technically it’s not mandatory, filing a return is still recommended to claim potential refunds.

Income Thresholds for Federal Taxes

The standard deduction amount depends on the taxpayer’s status. The standard deduction amount is typically adjusted annually based on inflation indicators. Each taxpayer can independently subtract the standard deduction from their income.

Generally, you must file a tax return if your income exceeds the standard deduction for your filing status (assuming you are not over 65 and other special tax rules don’t apply).

Below are the standard deductions for each filing status for the 2025 and 2026 tax years.

Important Note for Married Filing Separately

It should be noted here that although the IRS states that standard deductions for Married Filing Separately (MFS) are the same as Single status, this is not a criterion for determining whether a person needs to declare their income.

Individuals in the MFS category must file a return with the IRS even if they only earned $5. This income threshold applies to married couples of any age.

Standard Deductions for Seniors (Age 65+)

Taxpayers aged 65 and older have a bit more freedom of action, as they’re entitled to an additional standard deduction.

Below is the standard deduction breakdown for the 2025 tax year for individuals aged 65 and older.

As for widows and widowers, they have the right to file as Qualifying Widow(er) for two years after their spouse’s death if they have a child with dependent status. In this case, the taxable threshold is the same as married filing jointly.

Should You File If You’re Claimed as a Dependent?

There are situations where a person’s total income may be less than the standard deduction for their filing status, but they still need to file a tax return because someone else claimed them as a dependent.

The IRS provides an interactive tool on its website that can help anyone determine if they need to file a tax return. It’s intended only for taxpayers who lived in the U.S. for the entire tax year.

Who Must File a Tax Return Regardless of Income?

For some categories of people, filing a return is mandatory regardless of whether their income exceeds the standard deduction.

1. Nonresident Aliens: Applies to immigrants without certain documents if they engaged in any trade or business in the U.S. during the tax year.

2. Special Taxes: You must file if you owe additional taxes, such as:

   • Alternative Minimum Tax (AMT)

   • “Nanny tax” for household employees

   • Taxes on tips not reported to the employer

   • Additional tax on qualified retirement plans or health insurance accounts

Note: This list is not exhaustive. It’s recommended to consult with a specialist if you received any “unusual” income.

What Is Taxable Income?

Taxable income thresholds are calculated based on Gross Income, which is the sum of earned and unearned income.

• Earned Income: Wages, salaries, tips, and self-employment income.

• Unearned Income: Investment income, interest, and dividends.

Are Government Benefits Taxable?

• Unemployment benefits are considered taxable income.

• Social Security benefits are taxed only if gross non-taxable income plus half the Social Security benefits combined exceed $25,000 for single filers or $32,000 for married filing jointly (for 2025).

When Does It Make Sense to File Without Taxable Income?

Even if there’s no legal requirement to report to the IRS, sometimes it makes financial sense to file a tax return anyway.

• Refundable Credits: If you are eligible for a refundable tax credit (like the Earned Income Tax Credit), you must file a return to get the money.

• Withholding Refund: If income received was less than the standard deduction but taxes were withheld from your wages, you can file a return to recover those taxes.

Conclusion

The tax rules outlined above apply to federal taxes. Most states also collect income taxes, and the grounds for filing a return can differ significantly. Check with your state’s Department of Taxation about specific rules.

Good News: If you live or work in Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, or Wyoming, you generally don’t have to worry about state income taxes.

How Gennadiy Arnautov CPA Can Help?

Even if you had no income, filing a return can be important for receiving tax benefits or refunds. Our specialists will help:

• Determine if you need to file a return in your specific situation.

• Evaluate the possibility of receiving refundable credits or other tax benefits.

• Correctly complete the return to avoid errors and delays.

• Develop a strategy for future tax years for maximum benefit.

Don’t leave potential refunds unattended! Even without income, the right tax strategy can bring real benefits.

Contact Gennadiy Arnautov CPA for professional consultation and confidence in tax decisions.