Do I need to file a 1099-B from Cash App for tiny Bitcoin and stock gains (around 20¢ each)?
Title: Do I need to file a 1099-B from Cash App for tiny Bitcoin and stock gains (around 20¢ each)? 1 I dipped my toes into investing earlier this year by putting about $13 into Bitcoin and another $13 into some random stocks through Cash App. Honestly, I didn't expect much from such a small amount, and sure enough, I only made about 32¢ total when I sold everything (like 18¢ from crypto and 14¢ from stocks). Cash App just sent me a 1099-B form and now I'm wondering if I actually need to file this with my taxes? I've heard some people saying tax software charges extra fees (like $180+) just for having any crypto transactions on your return, which seems ridiculous for my tiny gains. Is there a minimum threshold for reporting this stuff? I don't want to pay a huge fee or complicate my taxes for literal pennies, but I also don't want to get in trouble with the IRS over something stupid. Thanks for any advice... and sorry if this is a dumb question!
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Leeann Blackstein
3 You technically need to report all capital gains regardless of the amount. However, for practical purposes, the IRS has bigger fish to fry than pursuing someone over pennies. That said, the 1099-B was filed with the IRS, so they know about these transactions. The good news is you don't need to pay for expensive software. Free File Alliance options can handle basic investment reporting, and most major tax programs only charge extra for more complex crypto situations (like mining or staking). If you use tax software, you can enter the 1099-B information without upgrading to premium versions in many cases - just look for free file options. Cash App should provide all the information you need on the form.
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Leeann Blackstein
•7 But doesn't the IRS have some sort of minimum threshold before they care? Like $600 or something? I've heard people say small amounts don't matter.
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Leeann Blackstein
•3 The $600 threshold applies to 1099-K reporting requirements for payment platforms, not capital gains reporting. All capital gains technically need to be reported regardless of amount. For your situation with such a small gain, the tax would be basically zero anyway. If you use free filing options, you can report it without paying extra fees. The concern isn't so much about owing taxes on 32 cents but making sure your tax return matches what's been reported to the IRS through your 1099-B.
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Leeann Blackstein
12 After dealing with a similar situation last year (small crypto trades on Cash App), I found a much easier solution with https://taxr.ai - it saved me so much headache. I uploaded my 1099-B from Cash App and it analyzed everything automatically, showing exactly what needed to be reported. The nice thing was it handled the crypto and stock transactions separately, so I could see my tiny gains itemized properly. It was surprisingly straightforward - no need to figure out which form goes where or worry about making mistakes.
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Leeann Blackstein
•18 Does it work with other exchanges too? I have some small trades on Coinbase and Robinhood too but nothing major.
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Leeann Blackstein
•19 How much did it cost though? Seems silly to pay for tax help when the gains are literally pennies.
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Leeann Blackstein
•12 Yes, it works with all the major exchanges and platforms! I've used it with documents from Coinbase, Binance, and even smaller platforms. It handles the format differences automatically which is super convenient. As for cost, it's actually way more affordable than the premium upgrades that most tax software charges just to handle crypto. The value for me wasn't about the amount of my gains but avoiding potential headaches with the IRS. Even small transactions need to be reported if they send a 1099-B, and doing it right the first time saves trouble later.
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Leeann Blackstein
19 Just wanted to update after trying taxr.ai for my similar Cash App situation. I was skeptical about spending money to report pennies in gains, but it was actually perfect for this exact scenario. The system immediately recognized my 1099-B from Cash App and separated the stock vs Bitcoin transactions. Turned out I could report everything correctly without upgrading to premium tax software. Total time spent was maybe 10 minutes versus the hours I wasted last year trying to figure out the right forms. Definitely less stressful than I expected!
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Leeann Blackstein
8 If you're struggling to get answers from the IRS about this, I highly recommend https://claimyr.com - I was in the exact same boat last year with tiny crypto gains and couldn't get through to anyone at the IRS for clarification. Their service got me connected to a real IRS agent in about 15 minutes when I'd been trying for days on my own. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The agent I spoke with confirmed that while all gains technically need to be reported, they have unofficial "de minimis" practices for tiny amounts. Getting that confirmation directly from the IRS gave me peace of mind rather than relying on internet opinions.
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Leeann Blackstein
•15 Wait, this actually works? I've literally spent HOURS on hold with the IRS and never get through. How does this service get you through when nobody else can?
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Leeann Blackstein
•19 Sounds like a scam tbh. Why would anyone need a service to call the IRS? And why would it work better than calling yourself?
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Leeann Blackstein
•8 Yes, it absolutely works! The service uses an automated system that navigates the IRS phone tree and holds your place in line. Once an agent is about to pick up, they call you and connect you. It's basically like having someone wait on hold for you. As for why it works better than calling yourself - they have sophisticated algorithms that know the best times to call and which IRS department paths have shorter wait times. I was super skeptical too, but after wasting an entire afternoon on hold and getting disconnected twice, I gave it a try and was talking to an agent in about 15 minutes. It's not a replacement for the IRS - they just get you connected to the actual IRS faster than you could on your own.
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Leeann Blackstein
19 I need to apologize for calling the Claimyr thing a scam. I was just frustrated with tax stuff and skeptical of everything. After reading more about it, I decided to give it a try since I had other tax questions beyond just the 1099-B issue. Got connected to an IRS agent in about 20 minutes (way faster than my previous attempts). The agent confirmed that while technically all income needs to be reported, they don't pursue cases over such small amounts, especially if the rest of your taxes are filed properly. The peace of mind was worth it, and I got answers to my other questions too. Sorry for being rude before!
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Leeann Blackstein
22 Not a dumb question at all! I'm a seasonal tax preparer and see this all the time. Here's the technical answer: Yes, all capital gains should be reported regardless of amount. But the practical answer? The tax on 32 cents would be... basically nothing. If Cash App issued a 1099-B, the IRS has that information, so ideally you should report it. But you absolutely don't need to pay for premium software for this. Most basic free tax filing options can handle simple capital gains reporting without extra fees.
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Leeann Blackstein
•7 So what form do I need to fill out for this? Is it complicated?
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Leeann Blackstein
•22 You'll need to fill out Schedule D (Capital Gains and Losses) and Form 8949 (Sales and Other Dispositions of Capital Assets). The 1099-B from Cash App contains all the information you need to complete these forms. It's not particularly complicated for simple transactions like yours. Most tax software, even free versions, will walk you through entering the information from your 1099-B and will automatically fill out these forms for you. The software will ask for details like purchase date, sale date, cost basis, and proceeds - all of which should be on your 1099-B.
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Leeann Blackstein
4 Why is everyone making this so complicated? Just report it. Use free filing software, enter the numbers from the 1099-B, and be done with it. The tax will be literally pennies, but you'll have the peace of mind knowing you did everything by the book.
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Leeann Blackstein
•24 This is the right answer. I had a similar situation last year. Reported tiny gains, took maybe 5 extra minutes in TurboTax free edition, paid no extra fees, and had zero issues. All this worrying is more work than just filing it correctly.
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Leeann Blackstein
•4 Exactly! People get so worried about tax stuff when the solution is often simple. In this case: report it properly, pay the fraction of a penny you might owe, and sleep well knowing you're compliant. If the IRS sent you a form, they know about it - just include it in your return.
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