How to File a Zero Income Tax Return
- 1). Prepare your income tax return as you normally would. If you don't have any income to declare, prepare the return anyway, including all deductions. Make sure that you include any income that should be reported, even if it's less than your combined standard deduction and personal exemption.
- 2). Claim any credits that you are entitled to, especially refundable credits that pay you back in cash even if you have no tax liability. These credits include the Earned Income Credit, the Additional Child Tax Credit and certain education credits starting in 2010.
- 3). Keep copies of any expenditures you claim, such as educational expenses or income earned. You may need to furnish it to the IRS if they choose your return for audit. Failure to do this may result in the forfeiture of your refund.
- 4). Finish your return and file it in the normal fashion, either electronically or via mail. Include direct deposit information for a faster refund. However, you will not be eligible for a rapid refund if your entire refund comes from the Earned Income Credit. Allow at least two weeks for processing if you filed electronically and opted for direct deposit, or twice that if you sent in your return by mail.
- 5). Check to see whether you need to file a state tax return. If you have no taxable income for your state return, then you can probably skip this step, since there are few or no refundable credits available from any state.