Form 1099-B Question

Forum|Forum|2 years ago
March 17, 2024
2 replies
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Silly question: my grandson started a brokerage account last year and mades 7 or 8 stock sales for a total gain of $1.24. Does this nominal gain have to be reported to the IRS? Banks supposedly do not have to provide Form 1099s if total interest (or dividends?) paid are less than $10. Does this also apply to stock transactions?

Best answer by Bsch4477

If that is his only income he would not have a filing requirement. If he does have a filing requirement then the gain must be reported. Note that although banks don’t have to send a 1099-INT under $10.00, any amount of interest still has to be reported if there is a filing requirement.

Bsch4477Answer

Employee

GGBJrAuthor

I was afraid that this might be the case. Many thanks for your very prompt response!

Mike9241

filing requirement is based on gross income. for stock only from trades with a gain

as a dependent he must file a return if any of the following apply.
• his unearned income was over $3,100
• his earned income was over $15,700
• his gross income was more than the larger of—
• $3,100 or
• his earned income (up to $13,450) plus $2,250