1099 misc box 3 question again

Leigh1178 · ‎September 30, 2019

I asked a question before and got an answer but I'm still a bit confused about my situation. I receive veterans disability as my only income. I know that I'm not required to file taxes on this.

Just recently I won a 600 dollar prize. I was told it will be reported on 1099 misc box 3. Since its a prize, I'm pretty sure it is not subject to self employment tax. ?? So do I need to file taxes on this since it is less than the standard deduction??. The last answer I got confused me because it said I might want to because the IRS could think it's subject to tax and ask me. Or have me file. I will file if that is what's required. But am I required to and if I don't will the IRS bother me about this? From what I've researched I am not required to file. Please someone with more knowledge than I , confirm this

Anonymous · ‎September 30, 2019

if the $600 is your only income, you are not required to file a federal return. i would not file. the worse that can happen is the IRS makes an inquiry (sends you a notice) but with only $600 of income on file, this is doubtful. say it does. then there will be a number on the notice you can call. explain that your only income was $600 and they'll tell you what to do. if they say file, again doubtful, file. there will be no taxes. penalties or interest since your liability is $0, you could probably prepare the return manually

My uncle, had income but was below the filing threshold in 2014-2018. never filed. never got a notice.

if your state has an income tax, you may need to file. if you tell us what state we can give better advice on this

BMcCalpin · ‎October 1, 2019

"My uncle, had income but was below the filing threshold in 2014-2018. never filed. never got a notice. "

Indeed, I have had clients who were on Social Security (and nothing else) who filed tax returns because they had filed every year for their entire lives so assumed that they were supposed to no matter what...until finally the IRS wrote them a nice letter saying that they no longer needed to file unless they have some other source of income (like taking money from an IRA).

As HACKITOFF says, the IRS won't bother you about not filing if their own records (copies of SSA-1099, W-2, 1099s, etc) don't show that you have sufficient taxable income to be required to file.