Most unemployed taxpayers still must file returns
by Paula Burkes Published: Tue, March 28,
Q: If you’re unemployed, do you still have to file a tax return? A: Usually. But often your tax burden will be lower, which can mean a larger refund or lower tax bill because of your lower taxable income. Q: Do you still have to file, if you were unemployed for all of 2016? A: If you have any income, including unemployment benefits and severance pay, you likely will need to file. However, if your income is below the filing requirement, you won’t. But even then, you still may want to file if there are credits for which you qualify. Q: What is the “filing requirement?” A: Generally, a taxpayers will need to file a tax return if their incomes exceed $10,350 (single filers under the age of 65) or $20,700 (joint filers under 65). Also, if you have $400 in self-employment income, you’re required to file a tax return. Q: For what credits might a unemployed taxpayer qualify? A: The Earned Income Tax Credit (EITC), Additional Child Tax Credit or the Savers Credit, to name a few. These credits can reduce what you owe or increase your refund. Q: For what deductions do unemployed workers qualify? A: If you itemize, you may deduct job hunting expenses. But for the expenses to be deductible, job searches must be in the same field as the job you lost.