1099B for S -- required to file tax return?

Parent Cafe
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<p>S had $560 in earned income on W2, and has $240 in dividends on 1099DIV, also received 1099B for sale of UTMA, (which was then put into 529) </p>

<p>have been researching and it seems once a 1099B is issued a tax return must be filed, however have also seen a formula mentioned so it is unclear to me. Cost basis not on the 1099B so trying to get that data as that may be the determinant. But thought I’d check with folks in the know here, is it required simply because a 1099B was issued by the broker?</p>

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<p>Only if the gross proceeds exceed $710. That’s because that amount, plus his dividends ($240) would exceed the unearned income limits for filing a return ($950) Without the return, the IRS would have no way of knowing whether the entire gross proceeds were taxable, or only the gains.</p>

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<p>thanks, I did see that amount indicated, however I read it was a different amount when there was also earned income.</p>

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<p>Wages $560<br>
Taxable interest income: $0<br>
Taxable ordinary dividends: $242<br>
Capital gains or losses: $1,614</p>

<p>I found the cost basis for my s’s 1099B. Seems with the capital gains of $1614 plus his dividends and wages he is required to file a return. I started a return on Taxact and he doesn’t actually have to have to pay any tax, does he still have to file?</p>

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<p>Lindz, go to this link: [Publication</a> 929 (2012), Tax Rules for Children and Dependents](<a href=“Publication 929 (2021), Tax Rules for Children and Dependents | Internal Revenue Service”>Publication 929 (2021), Tax Rules for Children and Dependents | Internal Revenue Service)</p>

<p>If you answer “No” to the question, “Is your child either age 65 or older or blind?” then
you must file a return if any of the following apply:<br>
Your unearned income was over $950 ==> your son’s total is $1856 (242+1614)
Your earned income was over $5,950.
Your gross income was more than the larger of $950, or Your earned income (up to $5,650) plus $300.</p>

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<p>From the same link, if you fill out the Filing Requirement Worksheet:
line 1: 860 (560 + 300)
line 2: 950
line 3: 950
line 4:5950
line 5: 950
line 6: 2416 (560 + 242 + 1614)
Since line 6 > line 5, dependent must file an ITR.</p>

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<p>For post#5, the you/your refers to your dependent Lindz not you. Sorry. I really need to wind down at this time instead of trying to answer tax questions.</p>

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<p>If you don’t file you’ll hear from the IRS. Eventually. He still won’t owe so it’s up to you. I suggest using the freefile on the IRS website. Won’t cost you anything and at least you’ll get it over with.</p>

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<p>thanks very much for the links. I realized after I posted that even though he doesn’t have to pay any tax, my 16 yr old still does have to file, and I will be doing that for him on Taxact. you guys are very helpful</p>

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<p>I’d recommend doing the return with your son if he’ll sit for it. I think that going through the process is pretty instructive for everyone.</p>