Form 1099-B Question

[GGBJr]

Silly question:  my grandson started a brokerage account last year and mades 7 or 8 stock sales for a total gain of $1.24.  Does this nominal gain have to be reported to the IRS?  Banks supposedly do not have to provide Form 1099s if total interest (or dividends?) paid are less than $10.   Does this also apply to stock transactions?

[Bsch4477 · Accepted solution]

If that is his only income he would not have a filing requirement. If he does have a filing requirement then the gain must be reported. Note that although banks don’t have to send a 1099-INT under $10.00, any amount of interest still has to be reported if there is a filing requirement. 

[GGBJr]

I was afraid that this might be the case.  Many thanks for your very prompt  response!

[Mike9241]

filing requirement is based on gross income.  for stock only from trades with a gain

as a dependent he must file a return if any of the following apply.
• his unearned income was over $3,100 
• his earned income was over $15,700 
• his gross income was more than the larger of—
• $3,100 or
• his earned income (up to $13,450) plus $2,250