If someone has income from stocks of less then the current federal income tax reporting requirement for "salary/wages".. and the stocks are there only form income.. do they still need to file? or just like if it was wages income do they not have to file? anyone know.
2007-07-31 04:11:46 · 6 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
The only reason you would need to file in that case is if you got a notice from the irs saying that you hadn't filed your tax return. You also need to check out your state income tax requirements though. Your stock sale income might be under the federal income requirements for filing a federal return, but might require you to file a state income tax return.
2007-07-31 04:18:59 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If you are a dependent and your unearned income is above $850, you are required to file a tax return.
If you are not a dependent, you are not required to file a return if your income is under the filing requirement.
However, if your gross proceeds from the sale of stock is more than the filing requirement, but your net income is less than the filing requirement, you should file the Schedule D return anyway to establish that you do not owe tax, and to record your gains and losses.
2007-07-31 04:58:45 · answer #2 · answered by ninasgramma 7 · 2⤊ 0⤋
One caveat:
If the Gross sale was higher than the filing requirement, you have to file.
For example: If you bought a stock for $8000 and sold it for $10000, your income would be only $2000 leaving you with a tax liability of $0.00. Unfortunately, all the IRS sees is $10k in income which is over the filing requirement.
Also, your state may have a lower filing requirement than the feds.
2007-07-31 04:20:53 · answer #3 · answered by Wayne Z 7 · 0⤊ 0⤋
You do not have to file if the income from the stocks is your only income and it is less than the federal income tax reporting requirements.
2007-07-31 04:15:43 · answer #4 · answered by William H 2 · 0⤊ 0⤋
Probably not. The instructions for the various flavors of Form 1040 give the filing requirements. Exception: if Federal tax was withheld from something for some reason, you need to file a return to get it refunded.
2007-07-31 04:36:52 · answer #5 · answered by Anonymous · 0⤊ 0⤋
If you have unearned income(interest, capital gain, and the like) greater than $850 you must file a return.
2007-07-31 04:27:59 · answer #6 · answered by ? 6 · 0⤊ 1⤋