Question

If I’m self-employed and didn’t pay estimated taxes, can I possibly get a refund?

Answer

It’s possible to have a refund if you didn’t pay estimated taxes. To have a refund, your deductions and credits must total more than your income tax liability.

You’d need to have both of these:

  • A combination of deductions and credits that reduce your tax liability to 0
  • One or more refundable credits to produce a refund

Refundable credits include:

  • Earned Income Credit (EIC)
  • Additional child tax credit
  • American Opportunity Credit
  • Lifetime Learning Credit
  • Alternative Minimum Tax (AMT) credit

However, if you’re self-employed, you’re still subject to self-employment tax. This goes toward Social Security and Medicare taxes.

Related Topics

Related Resources

IRS Notice CP23 – Estimated Tax Discrepancy/Balance Due

Notice CP23 notifies you of an estimated tax discrepancy. Learn more about notice CP23 and how to handle it with help from the tax experts at H&R Block.

IRS Notice CP504 – Intent to Levy State Tax Refund or Other Property

Learn more about IRS notice CP504, why you received it, and how to handle an IRS bill for unpaid taxes with help from the tax experts at H&R Block.

Section 1256 Contracts – Form 6781

Learn more about Section 1256 contracts and straddles from the tax experts at H&R Block.

IRS Letter 2566 – Proposed Individual Tax Assessment

The IRS has not received your tax return so they have proposed taxes due. Learn more about IRS Letter 2566 from the tax experts at H&R Block.