I am a student, and haven't filed a tax return in?

Question

I am a student, and haven't filed a tax return in 2003, 2004, or 2005.
During those years I havn't made any money, but I own a few stocks which I have traded regularly. Therefore, the IRS must assume my cost basis is a zero on the stocks reported to them on the 1099 by the brokerage company holding my stocks.
My question, how can I file for 2003-2005 and clear up this mess. I made only $300 in short-term capital gains in 2004, but in 2003, 2005, and 2006, I have carried a loss.
Thank you for your help!!

Answer 1

If your only income in 2004 was the $300 gain, you do not need to file and owe no tax.

The losses in 2003, 2005 and 2006 can be used to offset other income in those years up to $3,000 with the excess carried forward to future years. Without knowing the numbers for those years it's not possible to say if any loss carry forward remains for you to use to offset 2006 income or future years income.

Whatever the case may be, however, you don't owe any taxes. Hopefully you have your cost basis information for whatever stocks were sold in case the IRS asks any questions. When your only source of funds is the sale of assets it's a good idea to file a return anyway to satisfy the IRS that you have no taxable income since the only numbers they see are the proceeds from the sales.

Answer 2

Go ahead and gather the info and file the back returns. You can get the proper forms for each year at irs.gov

Doesn't sound like you'll owe anything, but filing will clear the books and prevent questions from coming up in the future.