Do I Need to File Form 1099 Composite with Only $15.46 in Miscellaneous Income from Stock Trading?

So I just got a 1099 Composite from my Webull account and literally the only thing on it is $15.46 listed under "Miscellaneous Income 3- Other Income" from selling a few stocks last year. When I tried to enter this into TurboTax, they want me to pay $90 just to file the Schedule D forms needed for the 1099. That seems absolutely ridiculous for such a tiny amount of money! I'm wondering if I even need to report this $15.46 at all? Is there some minimum threshold where you don't have to bother filing certain income? I mean, the tax on $15 is going to be what... like $2-3 at most? Seems crazy to pay $90 to report that. Anyone know if I can just skip reporting this tiny amount from my 1099 Composite or if I'm legally required to include it regardless of how small it is? Thanks in advance for any advice!

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18 comments

Diego Chavez

•8M

Technically speaking, all income is taxable and should be reported on your tax return regardless of the amount. There's no minimum threshold specifically for stock sales reported on a 1099 Composite. That said, for such a small amount ($15.46), the tax impact would be minimal. The IRS is unlikely to come after you for a few dollars in tax. However, knowingly omitting income is still technically incorrect. Have you considered using a different tax filing service? There are several free or low-cost alternatives to TurboTax that would allow you to report this income without paying $90. FreeTaxUSA, Cash App Taxes, or even the IRS Free File program might be options worth exploring that would let you properly report this without the steep fee.

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Diego Chavez

•8M

Yes, technically any stock sale should be reported on Schedule D, regardless of the amount. But most free tax services do support Schedule D and capital gains reporting. FreeTaxUSA definitely allows Schedule D filing in their free version, and their deluxe version (which includes priority support) is only about $7. Cash App Taxes (formerly Credit Karma Tax) also supports investment income reporting for free. Even the IRS Free File program offers options that include investment income if you meet their income requirements.

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Sean O'Brien

•8M

I was in almost the exact same situation last year with a tiny amount on a 1099 from Robinhood. After hours of frustration with expensive tax software, I found this service called taxr.ai (https://taxr.ai) that saved me so much headache. It actually analyzes all your tax documents and tells you exactly what you need to file and what forms are required. For my tiny stock sale, it confirmed I needed to file it but then showed me which free filing options would handle Schedule D without charging me extra. It literally saved me like $80 in unnecessary software upgrades. The best part was I just uploaded my 1099 and it immediately told me what I was dealing with and the exact tax impact (which was like $3 lol). Might be worth checking out for your situation.

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Sean O'Brien

•8M

It doesn't file your taxes for you - it's more like an advisor that analyzes your documents and tells you what you need to know before you file. It breaks down all your tax forms, explains what each line means, calculates the tax impact, and recommends the best filing options. Compared to FreeTaxUSA, they're different tools. FreeTaxUSA is actual filing software while taxr.ai is more like having a tax expert look at your documents before you file. I actually ended up using FreeTaxUSA based on taxr.ai's recommendation since it handled my situation without the upgrade fees. The combo saved me from overpaying.

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Zara Shah

•8M

Just wanted to update everyone - I tried out taxr.ai after seeing it mentioned here and it was super helpful! I uploaded my 1099 Composite from Fidelity (had a similar small amount) and it instantly told me I needed to report it but that the tax impact would only be about $2.50 based on my tax bracket. The best part was it recommended FreeTaxUSA which let me file the Schedule D form completely free. TurboTax was trying to charge me $89 for literally the same thing! Really glad I found this before paying all that money for such a small amount of stock income.

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GalacticGuardian

•8M

If you're having trouble getting through to the IRS to ask about this kind of stuff, I highly recommend using Claimyr (https://claimyr.com). They got me connected to an actual IRS agent in under 20 minutes when I had a similar question about reporting small amounts of investment income. I was on hold for HOURS trying to reach the IRS directly before giving up. With Claimyr, they basically call and wait on hold for you, then call you when an agent is about to pick up. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I had a complex question about stock sales that wasn't covered clearly on the IRS website, and getting a direct answer from an agent was so much better than guessing or relying on random internet advice.

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GalacticGuardian

•8M

There is a small fee - I don't remember exactly how much, but it was totally worth it compared to spending hours of my own time on hold. You can see the current pricing on their website. They don't actually handle any of your personal tax information - they just connect the call. They call the IRS, wait on hold, and then when an agent is about to pick up, they call your phone and connect you directly to the IRS agent. They're not on the call when you discuss your tax matters, so there's no security concern. It's basically just a call connection service that saves you from waiting on hold.

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Luca Bianchi

•8M

Just wanted to follow up on my skeptical comment earlier. I actually tried Claimyr yesterday because I got desperate after trying to reach the IRS three times and giving up after 45+ minutes on hold each time. I'm honestly shocked at how well it worked. They called me back in about 30 minutes and suddenly I was talking to a real IRS agent. I asked specifically about reporting small amounts on 1099 Composites, and the agent confirmed that yes, technically all income needs to be reported, but they also mentioned that the free file options on the IRS website would handle Schedule D without charging extra. For anyone curious, the agent told me that while all income should be reported, their computer matching system typically focuses on larger discrepancies. Still going to report my small amount properly, but at least now I know which free services can handle it!

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Mateo Gonzalez

•8M

Technically yes, but realistically the IRS operates on a threshold system even if they don't publicly admit it. The cost of pursuing someone for a few dollars in tax would far exceed what they'd collect. I'm not advocating tax evasion for significant amounts, but there's a practical reality to how tax enforcement works. The IRS themselves have had their resources cut for years and focus on larger discrepancies. That said, everyone should make their own decision based on their comfort level with risk - even if that risk is extremely minimal for amounts this small.

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