1009-INT questions

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Posted by Grip on April 6, 2009, 3:37 pm Please log in for more thread options I'm filing a 1040. 1) I received a 1099-INT  in the amount of $14 for my minor child, who I am claiming as a dependent.  Where do I need to this income? 2) In my 1099-INT, I had interest income and I had an early withdrawl penalty.  Does the latter offset the former? Thanks, G -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used,   >> << nor can it used, for the purpose of avoiding penalties  >> << that may be imposed upon the taxpayer.                  >> <<                                                         >> <<   The Charter and the Guidelines for submitting posts   >> <<  to this newsgroup as well as our anti-spamming policy  >> <<                  are at www.asktax.org.                 >> <<         Copyright (2007) - All rights reserved.         >> << ------------------------------------------------------- >> Posted by sfbeena on April 6, 2009, 7:44 pm Please log in for more thread options > 1) I received a 1099-INT  in the amount of $14 for my minor child, who > I am claiming as a dependent.  Where do I need to this income? 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. > 2) In my 1099-INT, I had interest income and I had an early withdrawl > penalty.  Does the latter offset the former? Yes.  See line 30 of form 1040. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used,   >> << nor can it used, for the purpose of avoiding penalties  >> << that may be imposed upon the taxpayer.                  >> <<                                                         >> <<   The Charter and the Guidelines for submitting posts   >> <<  to this newsgroup as well as our anti-spamming policy  >> <<                  are at www.asktax.org.                 >> <<         Copyright (2007) - All rights reserved.         >> << ------------------------------------------------------- >> Posted by Harlan Lunsford on April 6, 2009, 8:45 pm Please log in for more thread options sfbeena@gmail.com wrote: > >> 1) I received a 1099-INT  in the amount of $14 for my minor child, who >> I am claiming as a dependent.  Where do I need to this income? > > 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 $900, so there will be no tax. > > The child can also file their own return, but they have to also attach > a form in the 8000's to say they are a dependent but are filing their > own tax return, and some of their income will be taxed at higher > rates, though the tax would be zero in this case.  So in your case, > the above method is just fine.  Simpler. > >> 2) In my 1099-INT, I had interest income and I had an early withdrawl >> penalty.  Does the latter offset the former? > > Yes.  See line 30 of form 1040. > And since 14$ is well under the $900 floor, there's no need to file anything. ChEAr$, Harlan Lunsford, EA n LA -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used,   >> << nor can it used, for the purpose of avoiding penalties  >> << that may be imposed upon the taxpayer.                  >> <<                                                         >> <<   The Charter and the Guidelines for submitting posts   >> <<  to this newsgroup as well as our anti-spamming policy  >> <<                  are at www.asktax.org.                 >> <<         Copyright (2007) - All rights reserved.         >> << ------------------------------------------------------- >> Posted by removeps-groups@yahoo.com on April 7, 2009, 4:05 pm Please log in for more thread options > > 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 $900, so there will be no tax. > And since 14$ is well under the $900 floor, there's no need to file > anything. Probably.  The IRS might send a letter for not declaring income, but I doubt they would. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used,   >> << nor can it used, for the purpose of avoiding penalties  >> << that may be imposed upon the taxpayer.                  >> <<                                                         >> <<   The Charter and the Guidelines for submitting posts   >> <<  to this newsgroup as well as our anti-spamming policy  >> <<                  are at www.asktax.org.                 >> <<         Copyright (2007) - All rights reserved.         >> << ------------------------------------------------------- >> Posted by Harlan Lunsford on April 7, 2009, 4:54 pm Please log in for more thread options removeps-groups@yahoo.com wrote: > >>> 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 $900, so there will be no tax. > >> And since 14$ is well under the $900 floor, there's no need to file >> anything. > > Probably.  The IRS might send a letter for not declaring income, but I > doubt they would. > They won't.   You see, IRS has (closely guarded) threshold amounts for sending exception letters, amounts at which we may only guess at. Not true 40 years ago maybe, but in the interim someone took Accounting 101 and learned about "materiality". ChEAr$, Harlan Lunsford, EA n LA -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used,   >> << nor can it used, for the purpose of avoiding penalties  >> << that may be imposed upon the taxpayer.                  >> <<                                                         >> <<   The Charter and the Guidelines for submitting posts   >> <<  to this newsgroup as well as our anti-spamming policy  >> <<                  are at www.asktax.org.                 >> <<         Copyright (2007) - All rights reserved.         >> << ------------------------------------------------------- >> This Thread        Yahoo!   Google   Windows Live   del.icio.us   digg   Netscape 1009-INT questions Grip 04-06-2009  Re: 1009-INT questions sfbeena 04-06-2009  Re: 1009-INT questions Harlan Lunsford 04-06-2009  Re: 1009-INT questions removeps-groups@yahoo.com 04-07-2009  Re: 1009-INT questions Harlan Lunsford 04-07-2009 Related Posts Subject Date A few questions April 11, 2007, 11:28 pm Questions? 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