Question

I have been on workmen's comp all year but still had a mortgage and a child at home . How does this effect my taxes

Forum|Forum|5 years ago
January 11, 2021
1 reply
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TurboTax Deluxe Online

In a normal tax year you would have no reason to file any tax return since you have no earned income unless you had marketplace insurance. But this is not a normal tax year.

You can file a 2020 return IF ... you did NOT get all of the advance stimulus payments you are eligible for and/or you had earned income on the 2019 return in the EIC range. Follow the program interview carefully in the EIC section of the deductions & credits tab.

Hal_Al

Employee

Unemployment compensation is taxable (and reportable) income; it's just not classified as "earned income" and is not qualified for child based refundable credits. So, if you had a least $12,400 of income, you are required to file.

As Critter-3 pointed out, even if you had less, you still want to file, as you are allowed (for 2020 only) to use last year's (2019) earned income to calculate the Earned Income Credit and "Additional" (refundable portion) Child Tax Credit for 2020.