ThomasM
New Member

Get your taxes done using TurboTax

Here's the situation.  Your $80 capital gain is below the dependent filing requirement for unearned income (think "investments")  of $1050.  That means you do not owe tax on the amount, nor are you required to file a return.  But the reality is that you have gross proceeds that exceed $1050 -- even though they only amount to $80 of gain -- so I'm afraid what will happen is that IRS will do what I mentioned above: send a notice showing the gross proceeds as gain and requiring you to respond and prove otherwise (which you can do, but it will be a hassle).  Further adding to my expectation is an IRS chart with beautifully vague language, drawing a distinction between those "who must file" and those "who should file."  Gross proceeds factor into the latter category.

So I would advise you to file.  Since you haven't filed, it will be an original return, not an amended return.  You'll need to use TurboTax Premier online to do this, since a Form 8949 and a Schedule D must be prepared.  You'll file as a dependent, which means you'll answer "yes" to TurboTax's question "Can you be claimed on someone else's tax return," which you'll find in the Personal Info section when you're entering your name, SSN, etc, at the beginning of the process. Here's the link to get you started:  <a rel="nofollow" target="_blank" href="https://turbotax.intuit.com/personal-taxes/online/">https://turbotax.intuit.com/personal-taxes/onlin...>.

Doing it this way, even though you don't technically have to, will end the issue.

One last question, something I just noticed:  when you say the amount of adjustment comes from the 8949 form, that's a form that gets filed with a tax return, so where is that coming from?