Should a taxpayer file a return when income is zero?

Maybe. The first question is whether a return is required. The second question is whether filing is useful even if it is not required.

For example, Leah Moreno has no wages this year and lives from savings. She may be below the federal filing threshold. But she should still check for facts that could make filing useful:

• refundable credits
• health coverage reporting
• a tax payment or carryforward
• investment sales
• state filing rules
• a need to document income for school, lending, or benefit programs
• identity-protection concerns

Filing can also start the limitations period for the filed return. The exam trap is saying zero income means never file. The better answer is check whether filing is required, then check whether filing gives a procedural benefit.