Do I file taxes on capital gaines if that is the only income I have?

Answer 1

i always recommend filing....there are many factors involved - including the amount of the gain, your dependency status, etc...

check this out:

http://www.irs.gov/individuals/article/0,,id=96623,00.html

also, confirm you have not received any dividend/interest income...how were the gains reported? Did you receive
a K-1? If so, file file file!!! Even if you don't owe..sometimes it just saves you the hassle of worrying about that IRS later down the line....

Answer 2

If you have enough capital gains income to be over the limit for your filing status to be required to file a return, then yes, you have to file, and pay taxes if any are due.

Even if you are below that limit, it's a good idea to file - otherwise you might end up in a correspondence with the IRS on why you didn't have to file.

Answer 3

Are you a dependent on someone else's return? I assume this is the case.

You are required to file a tax return if your capital gains is more than $850. Your standard deduction is $850, and you will pay taxes on capital gains in excess of $850.

Answer 4

Yes you should file.
Let's say you sold stock for $20,000 that you paid $19500
Even though you have only $500 profit, you have to tell the IRS that by filing a return with a schedule D.
Otherwise they will want you to pay taxes on the the $20,000.
Also you can deduct brokerage fees that you may have paid when you sold the stock.

Answer 5

Yes, you sure do! And if you have unearned income greater than $850 in any year you must file a tax return. CG are unearned income by the way.

Answer 6

Yes. Capital gains still fall under the earned income category. Check the IRS website for further detail.

Answer 7

the saying is taxes come first.