Hello, This is my very first time on the ask me desk.

Here is my question-

Filing 1099's W/$0 income for the 2007 tax year.
Yes folks, 0 income stated on the 1099's

We are a family of 5, 2 adults, 3 children and we have almost completely depleted our savings.

We are both Realtors (don't laugh) in Florida (don't laugh again)

We've had tons of add'l medical billings because Our middle child had been stricken with serious medical problems and we had to hire private doctors and teachers.

We've paid out around 19k -22k in med care & meds, 3k in school supplies & 2.2k in office supplies.

Also, NAR, FAR & the local Realtor association/MLS fees $1800.


So all of you tax pros out there- Please let us know if we are able to take the child tax credit, are we eligible for a EIC? Can we get some kind of refund????

We are broke (1k left in savings) no one can seem to get a loan for our house (click here, its cute) because mortgages have gotten much harder to get (thats 40k below the house next door that closed on 10/31) and need to relocate ASAP to get close to my huge family to help us take care of our darling middle daughter and our 2 other precious girls.
text if you can tell us what to do, PLEASE

Mobea

What was your gross income before any deductions?

AtlantaTaxExpert

If you have no earned income, then, unfortunately, your are NOT eligible for any Earned Income Credit.

Recommend you both go out and get a part-time job under a W-2 to generate SOME earned income so that you can get the EIC.

Right now, you are out of luck.

s_cianci

I'm assuming that the $0 is your taxable income, not your gross income. If that's the case, then you'd be entitled to a refund of all taxes withheld during the course of the year. If you don't have taxes withheld then you won't owe anything. You should still be able to take whatever credits, deductions. etc. you'd normally be entitled to. Of course, once your taxable income hits $0 then anything further would be redundant.

Mobea

Why would you be issued a 1099 with 0 income?

AtlantaTaxExpert

Mobea:

Sometimes, real estate companies issues Forms 1099 regardless of the amount due.

I know it makes no sense, but I have seen Forms 1099 with ZERO income.

buymyflorida

Because we are self employed contractors. Each company (regardless of monies earned) must let the IRS know if we have made how much/if any monies. Atleast that is what the H&R Block guy said on the phone Friday! LOL

Mobea

If you did not have any taxes withheld or owe any taxes on a withdraw from a pension or such, and you did not have any earned, unearned or passive income over $250 then you are not required to even file a return. A lot of people file returns that are really not neccessary according to the IRS.
Do You Need to File a Federal Income Tax Return?

AtlantaTaxExpert

I agree with Mobea. If you do not follow my suggestion to work part-time in order to generate SOME income for EIC purposes, you may not even be required to file a tax return.

However, if the cost is not too great, you may want to file, because it is POSSIBLE that you have Net Operating Loss (NOL), which is a complicated computation that allows you to carry back losses from this year to previous years in order to claim refunds of taxes paid in previous years.

The NOL is NOT for amateurs. In fact, there are a fair number of "tax professionals" who cannot do a NOL, because there is no real good tax software to support a NOL computation. It has to be done manually.

I recommend that you consult with a CPA or enrolled agent to see if you may qualify for a NOL submission. Do it sometime in the next five weeks, because most tax professionals will shy away from doing such a return during the busy tax season.

Mobea

ATE, don't you have to have gross income in order to qualify for NOL?