problem solved, close thread
No change to assets.
Your assets are as of the date of filing your original FAFSA.
thank you!! what a relief!!
for next year i imagine i would have to report the assets though, right? or would i not have to if they’re reported on a Schedule D on my parents’ taxes? (im a dependent)
You report your income and assets, your parents report theirs.
Who invested in these stocks? You or your parents? Are these investments in their name…or yours?
they’re in my name. i do the investing. but im a dependent so for taxes for next year i think they have to fill out an extra form… not sure if that form will be under my name since it’s my doing and all… i figure there’s a way to account for the fact that it’s a dependent filling out the form and not the actual parents/join filers doing it.
Any investment income YOU earn is reported on YOUR taxes. Even if you are a dependent on their tax return.
For kiddie tax purposes, there is a form to be completed.
so would i have to file my own taxes then even if im a dependent? or do you mean i just report it on my section of the FAFSA next year?
Yes, you file your own taxes if you have income. If you have more than a certain amount in investment income you are required to do so.
And you reoort it on the FAFSA also…even if you don’t have to file a federal tax return.
You need to check your state tax return requirements as well.
@BelknapPoint can you clarify this for this student? Or @Madison85
what if i have a net loss though? would that still have to be reported as income even if it’s a 0? im trying to invest long-term and i have a -0.04 net loss from 2 sales i made earlier on but that’s all i plan on doing.
or im guessing this is where reporting stuff like dividends come in as income and all of that?
Hoping @BelknapPoint and @Madison85 chime in…and can explain investments and taxes to you.
Dividends ARE included in your income.
Income from assets held in the individual’s name normally is reported on the individual’s own income tax return, but there is an exception in certain circumstances that allows for a child’s income to be reported on a parent’s tax return.
https://www.irs.gov/taxtopics/tc553.html
Any income reported on a parent return is taxed at the (presumably higher) parent’s rate, so in exchange for simplicity (choosing the option to not file a separate return for a child), the tradeoff is likely to be paying more tax.
ah i see… thank you!! by interest…does this include interest earned in a regular savings account? or just bond interest?
so if you made less than $1050 in dividends/interest/gains, you still have to pay a 10% tax of $105? i don’t even think ill make $105 on dividends and gains to be honest…
Yes, interest earned on regular bank accounts is income taxable to the account owner.
If you can be claimed as a dependent on someone else’s tax return, use Table 20-3 in the following link to figure your standard deduction:
https://www.irs.gov/pub/irs-pdf/p17.pdf
If your total income is less than or equal to your standard deduction, you do not need to file a tax return.
Will you have any earnings from a job also?
nope, i have no job. my total income (which comes solely from investments) will definitely be less than the standard deduction.