Medical expense deduction when there is no income

Question

If medical expenses exceed your income, is there a mechanism by which you can receive money back when you file your taxes?

What impact would trying to claim the Earned Income Tax Credit have on this situation?

Answer 1

If you have an IRA with pretax money (i.e. a traditional IRA you were able to deduct while depositing), this is the time to consider a conversion to Roth. You'd benefit long term by having the money available later with no tax due on the withdrawn funds, including growth. This is a great way to benefit from your situation if you have the funds to convert.

Answer 2

This feels like a double post but the other question doesn't mention EITC.

If medical expenses exceed your income, is there a mechanism by which you can receive money back when you file your taxes?

If medical expenses exceed income they can potentially eliminate all income tax liability resulting in a refund equivalent to what was withheld, but without any income there is no tax liability and therefore no benefit.

To qualify for the Earned Income Tax Credit (EITC) you need to have earned income (employment or self-employment). There's also a phase out based on AGI and other restrictions. The medical expense deduction doesn't affect AGI, so it has no impact on EITC eligibility, but in a no-income situation there is no impact anyway.