Meaning of Income

It's easy to think that you don't have any income when, in fact, you do. Before deciding whether or not to file a tax return, examine your financial records for the previous year to make sure you didn't have income that requires you to file. Taxable income includes money you earn from a job, from retirement savings account distributions, from investment interest and from the sale of investments. If you're not sure if you have income that makes filing a requirement, the best idea is to file anyway just to be safe.

Filing for Rebates

One reason to file an income tax return even if you don't have any income is to be eligible for certain rebates. Federal rebates include lump-sum payments that the government may issue to taxpayers in hopes of relieving financial hardship or stimulating the economy. There are different ways to determine who receives a rebate payment, but in general only those who filed a tax return to make their financial information available to the government qualify. Refunds, which are different from rebates, apply if you paid an estimated tax payment but didn't actually earn any money. Refunds return the money you paid to you, but only if you file to claim them.

Filing for Records

Another reason to file without income is for your own personal records. You might have no taxable income due to deductions that eliminate the tax liability on a small amount of money you earn. While this makes it appear as though you have no income on your tax return, and will likely eliminate the legal requirement for you to file, you may wish to do so to keep copies of your tax returns for your own personal records. If you have no income in a given year and choose not to file, it will be more difficult to file again once you do have income since you'll be less familiar with the tax code and have fewer recent tax returns to use for reference.

How to File

Since you can file an income tax return whether or not you have income, the next step is to decide how to file. Even though the Internal Revenue Service no longer provides paper tax forms to taxpayers, you can still print paper forms from its website and submit them via postal mail. Filing online is another option that allows you to enter your information electronically and submit your payment by providing your bank account number. If your lack of income qualifies you for a refund, you can also file online and provide a bank account number to have your refund deposited automatically. Finally, paid tax preparers can complete and submit your income tax returns; if you have no income, yours is likely to be a simple and low-cost return to file.