My sister received a 1099-INT form, but doesn't work. Does she still need to file taxes?

Asked over 1 year ago - Davie, FL

My sister received a 1099-INT form from a company. However, she doesn't file taxes and hasn't worked in many years. What should she do with this information?

Attorney answers (4)

  1. Matthew Elon Abernethy

    Contributor Level 7

    3

    Lawyers agree

    Answered . The following analysis assumes that your sister is not claimed as a dependent by any other taxpayer.

    If your sister is under 65 and files as single, she would not have to file if her income (including 1099-INT income) is less than $9,750. If your sister is 65 or over and files as single, she would not have to file if her income (including 1099-INT income) is less than $11,200.

    If your sister is under 65 and is married filing jointly, she would not have to file if their joint income (including 1099-INT income) is less than $19,500. If your sister is 65 or over and is married filing jointly, she would not have to file if their joint income (including 1099-INT income) is less than $21,800.

    If your sister is married filing separately (regardless of her age), she would not have to file if her income (including 1099-INT income) is less than $3,800.

    If your sister is under 65 and files head of household, she would not have to file if her income (including 1099-INT income) is less than $12,500. If your sister is 65 or over and files head of household, she would not have to file if her income (including 1099-INT income) is less than $13,950.

    If your sister is under 65 and is a qualifying widow with a dependent, she would not have to file if her income (including 1099-INT income) is less than $15,700. If your sister is 65 or over and is a qualifying widow with a dependent, she would not have to file if her income (including 1099-INT income) is less than $16,850.

    Your sister would also be required to file a 2012 federal income tax return if she owes any special taxes, including: the Alternative Minimum Tax; recapture of the first-time homebuyer credit; additional tax on a qualified plan (such as an IRA); household employment taxes; social security or medicare tax on unreported tips, or write-in taxes. Additionally, your sister would be required to file a 2012 federal income tax return if: (1) her (or her spouse, if filing jointly) received HSA, Archer MSA, or Medicare Advantage MSA; (2) she had net earnings from self employment of at least $400 in 2012; or (3) she had wages of $108.28 or more from a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes.

    Even if your sister is not required to file under IRS Pub 17, she should file a federal income tax return to get money back if any of the following conditions apply: (1) she qualifies for the earned income tax credit; (2) she qualifies for the additional child tax credit; (3) she qualifies for the health coverage tax credit; or (4) she qualifies for the American opportunity credit.

    The bottom line is that f your sister is not required to file by any of the above-described requirements and does not qualify for any of the above-described credits, she shouldn't do anything with the 1099-INT she received.

  2. Brian Joseph Munson

    Contributor Level 13

    3

    Lawyers agree

    Answered . Interest is taxable income. However, if that is her only income, then it is doubtful she earned enough to have any tax liability.

    This answer does not establish an attorney-client relationship, Moreover, this attorney is Licensed to practiced... more
  3. Bruce Givner

    Pro

    Contributor Level 18

    2

    Lawyers agree

    Answered . You must file taxes if you earn $9,350 or more as a single person under the age of 65. If she is uncertain she should talk to a tax return preparer.

  4. Christopher Michael Larson

    Pro

    Contributor Level 19

    1

    Lawyer agrees

    Answered . Unless it is a lot of interest(In excess of $9,000), I would say that it will not trigger a duty to file by itself. The taxpayer would have to have income in excess of $9350 to be required to file.

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