Social security income & stocks

[Perf21]

Hello, my family member receives only social security income & has a 1099 B from Webull. Does she still need to add her social security income to the tax return or simply file only for that 1099 B? The proceeds were under $100 & there is no other income or tax form to add. She’s never needed to file in the past & she’s not married. 

[Vanessa A]

If the stock amount was only $100, she does not need to file a return if her income would still likely be under the threshold for filing of $14,700 for someone over 65. See below to determine if half of her SS income plus the $100 would create a tax filing requirement.  

If you fall into the following, 85% of your social security is taxable income

• Single with income above $34,000
• Married Filing Jointly with income above $44,000
• Married Filing Separate regardless of income

If you fall into the following, 50% of your social security is taxable income

• Single with combined income between $25,000-$34,000
• Married Filing Jointly with combined income between $32,000 and $44,000

Your combined income is calculated by adding your

• AGI plus
• Nontaxable Interest plus
• 1/2 of your social security Benefits

Social Security Benefits Taxes

(Edited 4/4/23 @2:27PMPST) @Perf21

[Perf21]

What about the Tax form that she received? The 1099 B has been reported & I don’t want the IRS to come after her. 

[Vanessa A]

If it is only $100 on the 1099-B and then she ONLY has the 1099-SSA, which only half of it would be taxable, the IRS will know she doesn't need to file.  The standard deduction for someone over 65 is $14,700.  So in order for her to need to file, her SS would have had to be more than $29,000.  If it was more than $29,000 and she had the $100 then she would need to file a return. 

[Perf21]

Can she still file the 1099 B anyways with or without her SS income? I’m sure she doesn’t have to but I don’t like feeling a bit of uncertainty. She also receives SSI which I know for sure doesn’t matter. She’s not older than 55 if that factor makes a difference. 

[Perf21]

Also, she’s doesn’t recall having any type of 1099 SSA form. She never had to file in the past so I don’t know if her situation is different or I’m simply completely lost here. 

[Hal_Al]

Q. She’s doesn’t recall having any type of 1099 SSA form. She never had to file in the past so I don’t know if her situation is different or I’m simply completely lost here.

A. That sounds like she is receiving Supplemental Security Income (SSI) and not Social Security Disability Income (SSDI).  SSI is welfare, is always tax free  and is not ever reported on a tax return. That's why an SSA-1099 is not issued. SSDI is potentially taxable and an SSA-1099 issued. 

Q. Can she still file the 1099 B anyways with or without her SS income? 

A. She can, but it's a waste of time and energy and maybe TurboTax fees, including the IRS time. If she has SSI, it would not be included on the filing.  If she got an SSA-1099, she must report it (if she's filing for some other reason), but none of it will be taxable.

[Perf21]

Alright, thanks. I think we’re clear here & I’ll double check to see what she receives exactly. I appreciate the help & your time. Thank you very much! 

[Vanessa A]

If she is under 65 and single and not blind, then her standard deduction would be $12,950.  If she has never needed to file before, it is unlikely $100 would make a difference.  

No, she cannot file with just the 1099-B. If she files she has to include ALL income from ALL sources on her return including Social Security. 

If you would attempt to file with her 1099-B and her Social Security, chances are you will need to print and mail the return since her taxable income will be $0. The IRS will not accept a $0 return.