Tax liability with zero taxable income

Forum|Forum|1 year ago
March 22, 2025
1 reply
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Total income = $59

Deductions = -$16,550

Taxable income = $0

Blended Tax Rate = $0.0%

Tax Liability = $21

How can I still have tax liability with zero taxable income?

Best answer by AnnetteB6

Yes, you may owe a Premium Tax Credit repayment. This would be reported on Form 8962 and would then be reported on Form 1040 Schedule 2 line 1a. Then this number will go to Form 1040 line 17.

This amount would represent a repayment of a portion of the advance premium tax credit you received.

@varo80

AnnetteB6

Taxable income determines whether you owe income tax. Tax liability encompasses income tax, self-employment tax, and other taxes.

If part of your income was due to self-employment income, then you may owe self-employment tax as part of your tax liability.

Take a look at your Form 1040 lines 16, 17, or 23 to try to determine what type of tax you owe.

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varo80Author

Thank you Annette!

However the income isnt due to any self employment. The only thing I can think is the marketplace.

Can a 1095A cause a tax liability? Because i noticed the amount due happened when input the 1095A form.

AnnetteB6Answer

Yes, you may owe a Premium Tax Credit repayment. This would be reported on Form 8962 and would then be reported on Form 1040 Schedule 2 line 1a. Then this number will go to Form 1040 line 17.

This amount would represent a repayment of a portion of the advance premium tax credit you received.

@varo80

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