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

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?

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Attorney answers 4

Posted

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.

Posted

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 law ONLY in LOUISIANA and answers to questions from other jurisdictions or states are meant to provide only general information. Users should contact a local attorney in their jurisdiction or state.

Posted

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.

Posted

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.

Christopher Larson
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