I'm filing a 1040.
2) In my 1099-INT, I had interest income and I had an early withdrawl penalty. Does the latter offset the former?
Thanks, G
Use form 8814 to report the child's income on your return. It's easy to fill in this form, and you'll report the income but there is an exemption of $900, so there will be no tax.
The child can also file their own return, but they have to also attach a form in the 8000's to say they are a dependent but are filing their own tax return, and some of their income will be taxed at higher rates, though the tax would be zero in this case. So in your case, the above method is just fine. Simpler.
Yes. See line 30 of form 1040.
And since 14$ is well under the $900 floor, there's no need to file anything.
ChEAr$, Harlan Lunsford, EA n LA
Probably. The IRS might send a letter for not declaring income, but I doubt they would.
They won't. You see, IRS has (closely guarded) threshold amounts for sending exception letters, amounts at which we may only guess at.
Not true 40 years ago maybe, but in the interim someone took Accounting
101 and learned about "materiality".ChEAr$, Harlan Lunsford, EA n LA
Have something to add? Share your thoughts — no account required.
Ask the community — no account required