for 2022
a return must be filed for him if any of the following apply:
- his unearned income was over $1,150. (this would include gains but not losses from sales of the crypto + the Swagbucks,etc)
- his earned income was over $12,950 (Swagbuhs, Etc,)
- his gross income was more than the larger of—
• $1,150, or
• his earned income (up to $12,550) plus $400
- he had net earnings from self-employment of at least $400 (Swagbucks, etc)
2021
a return must be filed for him if any of the following apply:
- his unearned income was over $1,100. (this would include gains but not losses from sales of the crypto + the Swagbucks,etc)
- his earned income was over $12,550 (Swagbuhs, Etc,)
- his gross income was more than the larger of—
• $1,100, or
• his earned income (up to $12,050) plus $350
- he had net earnings from self-employment of at least $400 (Swagbucks, etc)
2020
a return must be filed for him if any of the following apply:
- his unearned income was over $1,100. (this would include gains but not losses from sales of the crypto + the Swagbucks,etc)
- his earned income was over $12,400 (Swagbuhs, Etc,)
- his gross income was more than the larger of—
• $1,100, or
• his earned income (up to $12,200) plus $350
- he had net earnings from self-employment of at least $400 (Swagbucks, etc)
- why do you mention trust expert? this income would normally be reported on form 1040
- each year's 1040 is separate. so filing for some years may not be required unless he previously filed for that year in which case an amended return is required.
- Swagbucks, etc (see later about crypto) would be reported on schedule C, as would any expenses related to this activity that can be supported (I doubt that there would be any)
- conversion of SB's to giftcards etc would not be reportable nor would any expenses in connection with the conversions - a personal expense
- using SB's to buy crypto is in itself not taxable. howecver, when he sells the crypto for the year of sale he has a capital gain or loss that must get reported. this goes on form 8949/ schedule D
- certain years have a question about digital assets ie crypto that should be nswered yes
- the above may not be everything that has to be taken into account since since only limited info was provided and there was no mention of whether prior year returns were filed
- for 2020 and 2021if required, and no previous return was filed; it would either need to be prepared manually or through the use of self-prepared apps like Turbotax (for 2020 and 2021 Turbotax can only be done using desktop software - full pc or MAC while other online apps may allow preparation online of these years) . Since certain minors retuns can have complexities like the kiddie tax, i do suggest using an app rather than manual preparation. these returns must be mailed. Another consideration is if there is a state income tax.
- if you don't use Turbotax for any required returns for 2020 and 2021 you should continue using the same app for 2022. It just is simplier that way
- if preparing these returns seems daunting, then perhaps using a tax pro would be best but it would be costly.
- For additional questions about his returns please use this thread.
