You can get a refund even if you paid no taxes, but only through refundable tax credits

A tax refund when you paid nothing in taxes sounds impossible, but the IRS allows it through refundable credits. These are tax benefits that can pay you money even if you owe zero tax. The most common one is the Earned Income Tax Credit (EITC), which can return hundreds or thousands of dollars to workers and families with low to moderate income. Other refundable credits include the Additional Child Tax Credit and the American Opportunity Tax Credit (for education expenses).

The key difference: a regular tax credit reduces what you owe. A refundable credit does that, but if the credit is larger than your tax bill, the IRS sends you the difference. That difference is your refund, even though you paid nothing during the year.

You still have to file a tax return to receive this money. The IRS does not automatically send refundable credits—you must report your income and claim the credit on Form 1040 or Form 1040-SR.

Key Takeaways

  • Refundable tax credits can send you money even if you paid no income tax during the year, as long as your income qualifies.
  • The Earned Income Tax Credit is the largest refundable credit for workers, ranging from a few hundred to over $3,000 depending on income and family size.
  • You must file a tax return to receive a refund from a refundable credit—the IRS will not send it without a return on file.
  • If you had no tax withheld and no income, you likely do not may have access to for refundable credits and will not receive a refund.

How the Earned Income Tax Credit works when you paid no taxes

The EITC is designed for workers with low to moderate income. If you earned wages but had little or no tax withheld, or if you are self-employed and paid no estimated taxes, you can still receive an EITC refund. The credit phases in as your income rises, reaches a maximum, then phases out at higher income levels.

For the 2023 tax year, the maximum EITC was $3,995 for filers with three or more may have access to children, $3,515 for those with two children, $2,176 for one child, and $560 for workers with no children. These amounts change each year. If your total tax liability is less than your EITC amount, the IRS refunds the difference to you.

You do not need to have paid taxes to claim the EITC. You only need to have earned income from work and meet the income limits and other requirements set by the IRS. Self-employed people, gig workers, and W-2 employees all can claim it.

Other refundable credits that can send you money

The Additional Child Tax Credit (ACTC) is refundable up to a limit. If you have may have access to children under age 17, you can claim up to $2,000 per child in the regular Child Tax Credit. If that credit exceeds your tax bill, up to $1,700 per child (for 2023) can be refunded to you as the ACTC, even if you paid no taxes.

The American Opportunity Tax Credit allows up to $2,500 per student per year for education expenses. Up to $1,000 of that credit is refundable, meaning you can receive that portion even if you owe no tax. You must be paying for may have access to education expenses at an accredited school.

The Saver's Credit (also called the Retirement Savings Contributions Credit) is refundable and can return up to $1,000 if you made contributions to a retirement account and have low income. This credit is less common but can help workers who are saving for retirement.

What you need to file and claim a refund

You will need to file Form 1040 or Form 1040-SR (for people age 65 and older). You do not need to file if your income is below the threshold for your filing status, but if you want to claim a refundable credit, you should file anyway—the IRS will not send the refund without a return on file.

Gather your documents: your Social Security number or Individual Taxpayer Identification Number (ITIN), proof of income (W-2 forms from employers, 1099 forms if self-employed or a contractor), and information about any dependents you are claiming (their names, Social Security numbers, and dates of birth). If you are claiming the EITC, you will need to verify that any children meet the relationship, age, and residency requirements.

You can file online using free IRS software through the IRS Free File program if your income is below a certain threshold (usually around $79,000 for 2023). You can also file by mail using paper forms, or hire a tax preparer. Filing electronically is faster and more accurate than paper filing.

Timeline for receiving your refund

If you file electronically and choose direct deposit, the IRS typically issues refunds within 21 days of accepting your return. If you file by mail, allow 4 to 6 weeks. Some refunds take longer if the IRS needs to verify information or if there are errors on your return.

You can track your refund status using the IRS Where's My Refund tool on IRS.gov. You will need your Social Security number, filing status, and the exact refund amount from your return. The tool updates once per day, usually overnight.

If your refund is delayed beyond the expected timeframe, check the Where's My Refund tool first. If it shows no status, contact the IRS at 1-800-829-1040 (the main tax line) or visit a local IRS office. Bring a copy of your return and your Social Security card.

When you have no income and cannot get a refund

If you had no income during the year and no tax was withheld from paychecks, you do not may have access to for the EITC or most other refundable credits. The EITC requires earned income from work. If you received only unemployment benefits, Social Security, or other non-work income, you cannot claim the EITC.

You also cannot claim the Child Tax Credit or ACTC if you have no income, because these credits are tied to having a tax filing requirement or earned income. The American Opportunity Credit requires you to be paying for education expenses yourself or have someone else pay them on your behalf.

If you truly had no income and no tax withheld, filing a return will not result in a refund. However, if you had any earned income at all—even a small amount from a part-time job or self-employment—you may still may have access to for a refundable credit.

Frequently Asked Questions

Do I have to have paid taxes to get the Earned Income Tax Credit?

No. The EITC is refundable, meaning you can receive it even if you paid no income tax during the year. You only need to have earned income from work and meet the IRS income limits and other requirements. Self-employed people and gig workers may have access to as long as they had net earnings.

What if I made very little money and had no tax withheld?

You can still file a return and claim refundable credits if your income qualifies. Even if you owe no tax, the credits may result in a refund. The IRS will not send the refund unless you file, so it is worth filing even if your income is very low.

Can I get a refund if I only received unemployment or Social Security?

Unemployment and Social Security are not considered earned income for the EITC, so you would not may have access to for that credit. However, you may may have access to for other benefits depending on your situation. File a return to see what you are may have access to to.

How long does it take to get a refund from a refundable credit?

If you file electronically with direct deposit, expect your refund within 21 days. Paper returns take 4 to 6 weeks. Some refunds are delayed if the IRS verifies information. Use the Where's My Refund tool on IRS.gov to check the status of your specific return.

What if I claimed a child on my return but the IRS rejected it?

The IRS may reject a dependent claim if the child's Social Security number does not match their name or date of birth, or if someone else already claimed them. You will receive a notice explaining the issue. Respond to the notice with documentation (birth certificate, custody papers if applicable) or file an amended return if you made an error.