Options Trading Tutorial

Is it required that I file a tax return?

I am a 19 year old college student. This year I made $398 at a job. I have arround $700 in interest and dividends from some accounts. From stock/option trading, I have capital gains of about $300 and Losses of about -$3600, so capital gains/loss of about -$3300. I've definitly lost money on the year, so It seems like I sure dont' owe anything. Also, I will most likely be claimed a dependant on my parent's tax return. Am i required to file?

Public Comments

1. Yes, you must file. The capital losses will wipe out any income you have so there will be no tax due, however you must file a return since you had more than $850 in total unearned income.
2. Your income was $1,098 and you are a dependent. I don't believe you have to file a return because you remain a dependent. You would file a return to obtain a refund only if taxes were withheld from your income. Otherwise, the IRS could see that your capital losses were greater than your income and the standard deduction would render your taxable income at $0. You can go ahead and file a return and you would pay exactly $0 in taxes just for the mere formality. Since you have little income, you couldn't even use your capital losses to boost your itemized deductions.