A friend of mine, who is a student and has been unemployed, has made a few thousand dollars on investments this year. He's wondering how much money he can make without having to file an income tax return. He's single. In general I see for that filing status the IRS says that if "income does not equal or exceed $9,350" you don't need to file. Does anyone know if this includes capital gains from investments? Thanks.
http://www.irs.gov/newsroom/article/0,,id=105097,00.html You must file a federal income tax return if your income is above a certain level; which varies depending on your filing status, age and the type of income you receive. Check the Individuals section of the IRS website at http://www.irs.gov or consult the instructions for Form 1040, 1040A, or 1040EZ for specific details that may help you determine if you need to file a tax return with the IRS this year. lots of variables..age,marital status,long term gains,short term,full time student,what state resident etc etc..we don't know anything about it..
Hi. It's not for me. But I checked on all that and was still uncertain if it included capital gains. Thanks for the reply and link though. Does anyone know specifically if capital gains are included in the $9350 for a single filer?
US tax law is FUBAR just like everything else related to government.. http://www.moneychimp.com/features/tax_brackets.htm i would say..10%(assuming these are SHORT TERM Cap gains)..but.. http://www.hrblock.com/taxes/tax_tips/tax_planning/doyoufile.html Your filing status is Single and you're either of the following: * younger than 65 with gross income of $9,350 or more interesting question .. http://wiki.answers.com/Q/Do_you_have_to_file_a_tax_return_if_you_made_less_than_8000
From what I understand he doesn't have any other income except his financial aid money from student grants and loans which aren't taxable.
BCE: I believe it includes all foirms of income. The link below will take about 10 minutes to go through. http://www.irs.gov/ita/article/0,,id=219890,00.html Jack Edit: 18:25
Thanks, Jack. I saw that and I did that for him and it seemed to say "no", but I'll have him do it himself as I wasn't sure of some of the answers.
i also just finish it(watching the movie,chewing some raisins and browsing anyway)-it says no(f**..it was like 40 questions,perfect example of how screwed the tax law is),but make sure he is single.mean nobody claiming him as a dependent and he paying for his college and everything else by himself.
For a USA citizen / resident, it does not include capital gains or losses. Rather it includes gross sales proceeds. So if total sales for the year (added to all other includible revenue such as interest and dividend income) amounts to less that the amount needed for filing (less than $9,350 in your example), then in theory the taxpayer might not be required to file.
i'm confused...you mean if gross proceeds(2) from 1099 -B are less than $9350-then one doesn't have to file? did i understand you correctly? www.irs.gov/pub/irs-pdf/f1099b.pdf