2007 income taxes-What can I do???

[gramdma]

ohio- I have been on social security disability(medicaid) for the past two years due to being hit by a car. I have a daughter now and also have interest that I have paid on a student loan which I should be able to deduct. Problem is that I have paid no taxes for the past two years. How can I calim my child as a dependent and deduct my school loan interest from my returns (both federal and state) if I haven`t paid any. Can I go back and claim it later after I go to work or what?

[TinkerBelleLuvr]

If you have no taxable income, there is nothing to deduct. Possibly your daughter may have taxable income. Let her claim it.

[abezon]

Without income, you can't deduct anything. You might look into an income contingent repayment plan for your student loans, since you're on disability. That should reduce your loan payments.

You didn't say how old your daughter is. If she's a child, you could "sell" her dependency exemption to her father. Since he would benefit by up to $1800, he should be willing to shell out some cash to get you to sign an 8332. Note: don't give him an 8332 for a promise of cash; make him pay first.

You could also talk to a tax pro about your other options.

Good luck.