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Cashed in 2 life insurance policies and took a loss so no 1099s were sent. Do I need to report it as income anywhere on my taxes. That was my only income last year. I thought all income has to be reported even if I dont owe taxes on it? confused :-)

Forum|Forum|7 years ago
June 4, 2019
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Best answer by MichaelL1

Based on facts in the question, you do not need to file a tax return.

All income is taxable unless specially excluded.

Being taxable income and be taxed however are different. You can have taxable income, however due to the low amount, it may not be taxed.

For example, a single person under age 65 can make $10,350 ($6,300 standard deduction and $4,050 personal exemption) in 2016 and not have to file a return. These amounts go up if married filing jointly and over age 65.

Note: a return would be required if net profit from self-employment is over $400.

MichaelL1Answer

Employee

Based on facts in the question, you do not need to file a tax return.

All income is taxable unless specially excluded.

Being taxable income and be taxed however are different. You can have taxable income, however due to the low amount, it may not be taxed.

For example, a single person under age 65 can make $10,350 ($6,300 standard deduction and $4,050 personal exemption) in 2016 and not have to file a return. These amounts go up if married filing jointly and over age 65.

Note: a return would be required if net profit from self-employment is over $400.