How to file taxes with no job

Even if you’re unemployed, you may still need to file taxes. For example, unemployment benefits or government stimulus money may be taxed, or money you make selling stocks can be subject to taxation as well. Our team of Wiztax Experts put together a simple guide to answer the most common questions about taxes and tax debt when you’re unemployed.

How do I settle my tax debt if I’m unemployed?

Wiztax can help you if you’re unemployed, have a tax debt, and owe the IRS back taxes. Start by answering simple questions about your tax situation. Our free online system instantly determines if you qualify for Hardship Status as part of the IRS Fresh Start Program based on your current financial circumstances. Once you are in a “Currently Not Collectible (CNC)” hardship status, the IRS will stop all collection activity and you will not have to make any payments towards your tax debt.

Will I have to file taxes if I’m unemployed?

If you earned or received any income during a calendar year, more than likely you’ll have to file taxes. There are a few exceptions, such as people who earned below the gross income level thresholds, but for the most part, yes, you’ll have to file taxes. The minimum income for filing a tax return depends on a combination of your filing status, age, and income amount. You can use the IRS Interactive Tax Assistant (ITA) tool to help you determine if you need to file.

Keep in mind that if you suddenly lost your job but received a severance package, severance pay is subject to taxation. Self-employment income must be reported too if it exceeds a certain amount – $400 at the time of this writing – (even if you’re below the gross income threshold), so your side hustle may be taxable.

How do I file taxes if I’m unemployed?

You file taxes similarly to how you’d file if you were employed. You’ll still receive your W-2 form from your employer, along with any other tax forms, such as those associated with a severance package or self-employment work. Plus, your state will send you a Form 1099-G for any unemployment you received. All of this income will need to be claimed on your tax return.

Is unemployment taxable?

For the most part, yes. Unemployment income is considered taxable income, and all unemployment benefits must be declared to the IRS.

Unemployment: Federal Taxes

All unemployment benefits must be reported on your federal tax return. However, there are some income tax credits.

Unemployment: State Taxes

Some states don’t tax unemployment, and therefore, you won’t have to claim the unemployment benefits to the state. Refer to your state’s unemployment guidelines to see whether or not they tax unemployment.

Will I owe taxes if I’m unemployed?

If you don’t currently have a job, but you were employed for most or part of the prior year, you’ll still need to file a tax return for that earned income. Just bear in mind that filing taxes doesn’t necessarily mean that you owe taxes. It simply informs the IRS about your income, employment situation, and family status. In fact, some people may realize that they dropped to a lower income bracket because of the COVID-19 pandemic, and therefore may owe less or even receive a refund.

Can I get a tax refund if I received unemployment?

The answer to this depends on when you lost your job and how much unemployment you received. If you were employed at a higher wage for much of the year, you likely will owe taxes. However, if you lost your job early in the year and your unemployment benefits were significantly less than your previous income, you may be entitled to a refund.

What are some tips for filing taxes when unemployed?

Some people may be eligible for certain tax credits that they weren’t before being unemployed. For example, if you used to itemize deductions, but no longer do because you lost your job, then the standard deduction may be higher, which may make your taxable income less.

There are other credits available for individuals who earn less, such as the Earned Income Tax Credit, Child Tax Credit, Child, Dependent Care Credit, and Savers Credit for contributions to your retirement accounts. These credits are designed to benefit families, both with and without children, who are low-income earners. If you haven’t been eligible for these credits in prior years, you may be this year.

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Filing taxes can be a complicated process, especially if you are experiencing housing instability or homelessness.

If you have lost your tax documents, don’t know where to file your taxes, or don’t know how to receive your refund, here are some guidelines to help prepare you to file your taxes.

Should I file taxes if I don’t have to?

Even if you aren’t required to file a tax return, you may still qualify for tax credits like the Earned Income Tax Credit (EITC) and the Child Tax Credit. These credits reduce the amount of taxes you owe and may provide a refund at tax time. To claim the credits, all you need to do is file your taxes.

How do I file taxes without a permanent address?

Shelters and other service providers, such as health care clinics and drop-in day centers, may allow you to use their address for tax purposes. Other agencies that offer homeless prevention services like a Community Action Agency or Salvation Army are also options. If you are not staying in a shelter or cannot find a service provider nearby, you can also use a relative’s or friend’s address.

How do I file taxes if I’ve lost my tax forms?

To file taxes, you will need Forms W-2 or 1099, provided by your employer. If you did not receive these forms or misplaced them, you can still file taxes and claim tax credits by obtaining a copy of these documents from your employer.

If you cannot get a copy, you can fill out Form 4852, Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. These forms will request information about your wages and taxes that are withheld, so it would be helpful if you have documentation, such as a final pay stub, to complete it. If you do not have a final pay stub, you may still be able to fill out the form by estimating your earnings.

If you are unable to estimate your earnings, you can request a wage and income transcript from the IRS for free. This transcript includes data for Forms W-2, 1099, and 1098. You have two options to receive the transcript.

Online: Register for Get Online Transcript, to instantly view, print, or download your transcript. Online transcripts are redacted and mask some of your personal information to help reduce identity theft.

To use Get Online Transcript, you will need to sign in with your existing IRS username or create a new account with ID.me. To create a new account, you will need to have photo identification, such as a driver’s license, state ID, or passport. You will also need to take a selfie with a smartphone or a computer with a webcam.

Mail: Use Get Transcript by Mail or call the automated phone transcript service at 800-908-9946 to get your transcript by mail. You will need your mailing address from your most recent tax return. The IRS will mail unredacted transcripts with all your personal information visible to the last address they have on record for you. It will take 5 to 10 calendar days from the time the IRS receives your request.

If your address has changed from the one used on your most recent tax return, you will need to file Form 8822, Change of Address,  to update your mailing address to the one you will use to file your tax return before requesting a transcript by mail. Transcripts cannot be faxed.

If neither of those options work, you can submit Form 4506-T, Request for Transcript of Tax Return, to get tax return information.

If your state requires you to file a state return, contact your state’s department of revenue or tax office to get info on any state tax withheld.

Where do I find free tax help?

If you (and your spouse if filing jointly) earn less than $57,000, you could qualify for free tax preparation in your community. Volunteer Income Tax Assistance (VITA) and AARP Tax-Aide sites offer free and reliable tax filing services. They prioritize accuracy, with a rate of over 90 percent, the highest in the industry. To find a site, visit the IRS’ site locator tool.

If you have a basic tax return, there are free options to file online. You can visit Get Your Refund, a fully virtual tax assistance service where you can file your tax return with the help of an IRS- certified volunteer. Get Your Refund is free for those who earn less than about $66,000.

If you’re able to file taxes on your own, you can use MyFreeTaxes if you do not have self-employment income. If you are self-employed, there are many tax filing software options that may be more affordable than visiting a paid tax preparer.

Other Resources:

Claiming Social Security Benefits While Experiencing Homelessness

Outreach Tips to Connect People Experiencing Homelessness to Stimulus Payments

Homelessness Resources & Shelter Directory

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