1

I am 55 years old. I'm a dependent of my daughter who's fully supporting me. Just for fun.......I also did some part time job and and played with stock and crypto in 2019:

1) Part time job: $2,000 total for the 2019 year

2) Stock and crypto. I bought some in the amount of $500 and sold it for around $1,200, i.e. $700 short term capital gain.

So my total earnings for the year 2019 were: $2,000 wages plus $700 short term capital gain. TOTAL: $2,700.

Should I pay taxes from those short term capital gains? Or should my daughter pay taxes from my capital gains? Or no taxes since it's less than 4000. I know the 4000 limit rule applies to normal wages. But does it also apply for income from short term capital gains?

1
  • Did they withhold any federal, state or local income taxes from your part time job? May 2, 2020 at 11:49

1 Answer 1

1

Based on your question you are dependent, under age 65 and I am assuming not blind. Your earned income is $2,000 and your unearned income is $700 with a gross income of $2,700

So from IRS pub 501

Single dependents—Were you either age 65 or older or blind?

No. You must file a return if any of the following apply:

  1. Your unearned income was more than $1,100.
  2. Your earned income was more than $12,200.
  3. Your gross income was more than the larger of:

    a. $1,100, or
    b. Your earned income (up to $11,850) plus $350.

Yes. You must file a return if any of the following apply.

  1. Your unearned income was more than $2,750 ($4,400 if 65 or older and blind).
  2. Your earned income was more than $13,850 ($15,500 if 65 or older and blind).
  3. Your gross income was more than the larger of:

    a. $2,750 ($4,400 if 65 or older and blind), or
    b. Your earned income (up to $11,850) plus $2,000 ($3,650 if 65 or older and blind).

So you would be in the no section, and your gross income would be larger than $1,100.

Of course if any income taxes were withheld from the part time job then you would have wanted to file even if not required just to get the taxes refunded.

1
  • 1
    Your gross income was more than the larger of: b. Your earned income (up to $11,850) plus $350. Doesn't that one catch them? Gross 2700, earned 2000.
    – Hart CO
    May 2, 2020 at 23:15

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .