Why file Y tax returns with no income (no money)?

[60&counting]

What is the name of your state (only U.S. law)? SC

I haven't filed income taxes for several years. I have no income. My investments in stock market have been decimated so capital gains is very negative. My equity in my house is gone. I have barely survived (but not for much longer) on what is left of my savings. I cannot afford to make any extra payments and in fact have defaulted on some just to keep food on the table. Had to give up medical insurance a couple years ago - they jacked it to $10,000 a year in premiums with a $3000 deductible. I cannot afford to pay for the drugs I need for high cholesterol. There are no jobs available in my small town and I can't sell my house to move somewhere to take a job. Would someone please give me a good reason why I should file a tax return? I am sure it will just bring the IRS after me for penalties and interest. The IRS is a bloodsucking ruthless dictatorship with the poor and middle class as anyone who has dealt with them knows. Assuming I live to 62 will I be disqualified to receive social security and medicare if I haven't filed for several years? Thank you for your time.

 

[Some Random Guy]

I am sure it will just bring the IRS after me for penalties and interest. The IRS is a bloodsucking ruthless dictatorship with the poor and middle class as anyone who has dealt with them knows.

So the IRS has never done anything bad to you and yet they are ruthless and bloodsucking?

There are specific rules for who has to file a return. They are spelled out in the tax forms which are available at local libraries or here:

http://www.irs.gov/pub/irs-pdf/i1040ez.pdf (see page 7)

Do You Need to File a Federal Income Tax Return?

If you have no income and have not had any in years, then you will not owe penalties and interest becaue you will have not owed any taxes and were never required to file.

If ANY money was withheld for taxes, in the past few years, then it may be to your advantage to file in order to get refunds on that money.

Assuming I live to 62 will I be disqualified to receive social security and medicare if I haven't filed for several years?

You are not required to file returns unless you meet the filing requirements found on the tax forms. You wiill not be disqualified for doing what you are legally entitled to do. But, if you have not been working for decades, you may not have enough credits to qualify for social security. See this link for more info on that

How You Earn Credits

 

[LdiJ]

What is the name of your state (only U.S. law)? SC

I haven't filed income taxes for several years. I have no income. My investments in stock market have been decimated so capital gains is very negative. My equity in my house is gone. I have barely survived (but not for much longer) on what is left of my savings. I cannot afford to make any extra payments and in fact have defaulted on some just to keep food on the table. Had to give up medical insurance a couple years ago - they jacked it to $10,000 a year in premiums with a $3000 deductible. I cannot afford to pay for the drugs I need for high cholesterol. There are no jobs available in my small town and I can't sell my house to move somewhere to take a job. Would someone please give me a good reason why I should file a tax return? I am sure it will just bring the IRS after me for penalties and interest. The IRS is a bloodsucking ruthless dictatorship with the poor and middle class as anyone who has dealt with them knows. Assuming I live to 62 will I be disqualified to receive social security and medicare if I haven't filed for several years? Thank you for your time.

By not filing your tax returns, you are not establishing your capital losses. That will mean that if in the future you do have income, you will not be able to take those losses against your income.

If you owe no tax, you would have no penalties or interest...you would merely be establishing your losses to make them available for future use.

 

[irsos]

What is the name of your state (only U.S. law)? SC

I haven't filed income taxes for several years. I have no income. My investments in stock market have been decimated so capital gains is very negative. My equity in my house is gone. I have barely survived (but not for much longer) on what is left of my savings. I cannot afford to make any extra payments and in fact have defaulted on some just to keep food on the table. Had to give up medical insurance a couple years ago - they jacked it to $10,000 a year in premiums with a $3000 deductible. I cannot afford to pay for the drugs I need for high cholesterol. There are no jobs available in my small town and I can't sell my house to move somewhere to take a job. Would someone please give me a good reason why I should file a tax return? I am sure it will just bring the IRS after me for penalties and interest. The IRS is a bloodsucking ruthless dictatorship with the poor and middle class as anyone who has dealt with them knows. Assuming I live to 62 will I be disqualified to receive social security and medicare if I haven't filed for several years? Thank you for your time.

If you don't file, the IRS has no way to know if you had gains or losses. They may well file returns for you showing the security sales as income with no basis to reduce the gain. Then you could end up in enforced collections and face a levy on your bank account or other assets.

 

[60&counting]

Thank you

for the helpful information LdiJ and irsos. Much appreciated.