I am a college student and I play around with stocks. I just got home to find a 1099 form which obviously I didnt file on time if I had to file. My only income is proceeds from stock. My proceeds from stock are $7385.34 for the year and purchases are $7,162.92. So I made $222.42 for the year... not a lot anyway do I need to file.
2007-05-28 17:58:12 · 5 answers · asked by M C 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
Actually, it depends. You mentioned that you're a student, but you didn't say whether or not your parents still claim you as a dependent on their tax return. If they still claim you, then yes, you must file a tax return. The unearned income above $850 requirement to file applies to dependents. You won't owe anything, but it's best to file now in order to avoid any hassle later on down the road.
If they no longer claim you, then no you are not required to file. If your gross income is less than $8,450 (regardless of the source) you are not required to file a tax return.
2007-05-29 08:55:21 · answer #1 · answered by starlight_chic06 3 · 0⤊ 1⤋
Did you file a return because of other income or to get a refund, or for any other reason? If so, you need to amend it to include the stock sales. If you have no other income, you probably didn't.
When filling out your schedule D to report the stock sales, you don't show your purchases for the YEAR, you show the cost for each block of stock that you SOLD, on the same line as the sale price for that stock. You use a separate line for each sale, under long-term or short-term depending on how long you held the stock.
In any case, with that much in sales, you'd be wise to file. The IRS doesn't know what you paid for the items, so if they pick up that no return was filed on this, they'll assume that your basis was zero and send you a bill that will be larger than you really owe - you'd be able to get it corrected, but could be a pain.
If you are a dependent, then you are required to file since your gross income is over $850. If you're not a dependent, you're not required to, but might simplify your life if you did. At a guess, you won't owe any tax, whether you can be claimed as a dependent or not, but I'd file just to avoid hassle down the road.
2007-05-29 11:32:39 · answer #2 · answered by Judy 7 · 0⤊ 1⤋
You sure do! If you don't, the IRS will assume that the entire $7385.34 is gain since they don't have the information on your cost basis. If the gain you stated is your only income for the year there won't be any tax due but you need to file to make sure that the IRS has the correct numbers.
You need to file if you have unearned income of $850 or more. As far as the IRS is concerned, you have $7385.34 in unearned income so filing is required.
2007-05-28 18:09:29 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
You need to search your records and come up with the purchase price for each stock you sold, and also the amount of any dividends that you reinvested. You'll show this amount as your basis on each line of your schedule D showing the sales, and will only be taxed on any gains. YOU, not the IRS, are responsible for coming up with that info. If you bought the stock through the same broker that sold it, they might have the info you need.
2016-05-20 04:20:24 · answer #4 · answered by mandi 3 · 0⤊ 0⤋
Yes you need to file. email me if you have any another question, i might be able 2 help you out. urariot@yahoo.com
2007-05-28 18:06:45 · answer #5 · answered by Anonymous · 0⤊ 0⤋