With 2 kids and less than 3K in Income, can I a get Tax Refund?

I have a friend who has been on Temporary disability for several years and has 2 children under 17. Her income is 204 per month (2448 per year) from assistance, and her housing is free from the voucher program, but she has no help for medical expenses and no ability to get a job because of having no money for transportation. Is she able to file taxes and get the Child tax credit even if her income is so low? Is her income even reportable as taxable income?

With 2 kids and less than 3K in Income, can I a get Tax Refund?

The sutoff for income tax if around $6000. This is why so many teens who make under this amount get a FULL tax refund. If your friend is below this cutoff limit, than she should be fully reimbursed.

With 2 kids and less than 3K in Income, can I a get Tax Refund?

The child tax credit can only reduce her taxes, and hers is already at zero with income that low, so no, that won%26#039;t help her.

Doesn%26#039;t sound like her income is reportable. You mention that she%26#039;s on temporary disability, but don%26#039;t mention any disability payments - if she has that, it might be reportable depending on the type.

With 2 kids and less than 3K in Income, can I a get Tax Refund?

She should get all of it refunded and possibly get an earned income credit.

With 2 kids and less than 3K in Income, can I a get Tax Refund?

Since her income is from assistance, then no it%26#039;s not reportable. The Child tax credit and the child care credits only reduces tax liability (which she doesn%26#039;t have). The Earned Income Credit (EIC) is only for income from working, and the Additional Child Tax Credit doesn%26#039;t start phasing in untill $10,500 of earned income.

She can still file a tax return and get the telephone excise tax credit of up to $50 (with 3 exemptions) if she had long distance on her phone and she paid for it for the past 3 years. Please note that this is only available this year. If she wants any money from the government next year she has to go out and get a job.

With 2 kids and less than 3K in Income, can I a get Tax Refund?

In her situation she does not need to file. The benefits she receives are not taxable. She has no earned income so does not qualify for the Earned Income Tax Credit. The Child Tax Credit is a reduction in liability but since she has no liability it won%26#039;t benefit her.

The only thing left is the Phone Tax Rebate, a one-off refund of Telephone Excise Taxes that she may be eligible for if she had phone service (any kind -- land line, cellphone or VOIP) that included long distance service at any time between March 2003 and July 2006. It%26#039;s worth $50 to her. She can file Form 1040EZ-TC to claim it.

With 2 kids and less than 3K in Income, can I a get Tax Refund?

Some disability payments are taxable income, it is not clear from your description if this is the case with your friend. If she received a W-2 or 1099R that indicated her payments are taxable, then she can file a return and get Earned Income Credit if the children lived with her for more than six months.

She does not have to file by April 17 and there will be no penalty if she waits to file for a refund.