Can Unemployed Women With Children File for a Tax Refund?
An employed woman is responsible for paying income taxes to the Internal Revenue Service (IRS). If the woman has children, the amount of taxes she owes the IRS may be reduced, resulting in a tax refund. This is done by applying the "Child Tax Credit." If a woman is unemployed, she may still be required to file a tax return. Depending upon her circumstances, it may be possible for her to take advantage of the Child Tax Credit, despite her unemployed status.
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Unemployment Length
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If the woman works during the tax year, regardless of the length of time, she should file for a tax refund. If the woman did not work at all during the tax year, she may still be able to file for a tax refund, depending upon whether or not she receives income from other sources. In general, if a woman does not receive any income from any source during the tax year, she is unable to file for a tax refund.
Other Income Sources
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If the woman receives money from other taxable income sources, she should file a tax return. Examples of taxable income sources include 401K withdrawals, alimony, unemployment benefits, disability income, royalties, lump-sum payments, paid babysitting and renting out property such as a room. (This is a nonexhaustive list of taxable-income examples.) To determine whether or not income is taxable, consult with an accountant or contact the Internal Revenue Service at 800-829-1040.
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Child Tax Credit Explained
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The Child Tax Credit is designed to provide tax relief to parents of qualified children. A woman can receive up to $1,000 of credit as of August 2011 for each "qualified child." The maximum number of children the woman can claim for a child tax credit is five. Once the child tax credit is applied to a tax return, it offsets the amount of tax that is owed. In many instances, this results in quite a hefty refund, even if the woman did not work much during the year.
Qualified Children
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In order for a woman to claim the Child Tax Credit, the child must under the age of 17. More than half of the child's support must be provided by the woman. This qualifies the child as a "dependent." The child must past the "Relationship Test." This means that the child must be the woman's biological child or another child for whom she regularly provides care, such as a stepchild, foster child, grandchild, niece or nephew. The child must be a United States citizen, and must live with the woman for at least half of the tax year.
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