Any reason to file?

[Misterskyline]

What is the name of your state (only U.S. law)? NY

Hi, quick question.. I currently have about 2 grand in losses on my 1099 forms(stocks) for 2015.. I should add that I was unemployed for 2015. Is there really any point to spend the money to file, or it doesn't matter? I wasn't going to bother filing, but recently did some research and noticed one site said that I should file because brokers send all my transactions to the IRS, and the IRS does not know if these sales were gains or losses, so they will send me a bill assuming it was all gains. Is this true? What to do? Then again, I was unemployed, so any gains taxed, would be returned, correct? The only benefits I could see to this move, is to be able to write off any future gains or taxes owed? Please let me know what I should do, thanks..

 

[davew128]

You have a filing requirement, so yes you should file. Gross sales on securities is income.

 

[FlyingRon]

You have a filing requirement, so yes you should file. Gross sales on securities is income.

It would matter what the gross proceeds were. If they're under $10K or so and nothing else odd is going on, he may not need to file.

The IRS has a nice little thing that asks you a bunch of questions and tells you if you need to file: https://www.irs.gov/uac/Do-I-Need-to-File-a-Tax-Return?

 

[davew128]

It would matter what the gross proceeds were. If they're under $10K or so and nothing else odd is going on, he may not need to file.

The IRS has a nice little thing that asks you a bunch of questions and tells you if you need to file: https://www.irs.gov/uac/Do-I-Need-to-File-a-Tax-Return?

Should file either way. If its a capital loss, then you need to file to carry it over.

 

[Misterskyline]

Should file either way. If its a capital loss, then you need to file to carry it over.

Thanks alot. I was actually able to recieve a nice return! So happy I filed. And the accountant said exactly what you said, you need to file every year or recieve penalties, etc.

 

[LdiJ]

Thanks alot. I was actually able to recieve a nice return! So happy I filed. And the accountant said exactly what you said, you need to file every year or recieve penalties, etc.

Just FYI:

Return = The document you file with the IRS.
Refund = Money you get back from the IRS.

 

[davew128]

Thanks alot. I was actually able to recieve a nice return! So happy I filed. And the accountant said exactly what you said, you need to file every year or recieve penalties, etc.

Then your accountant was wrong. The requirement to file is based on either having sufficient gross income or having a tax. If you don't have a filing requirement you cannot be penalized.