Do I need to file a tax return for minimal day trading profits as a student?

Thanks, that's helpful! But what if my parents file me as a dependent AND I file my own return? Does that cause problems? Also, will Robinhood automatically send that 1099 thing to the IRS even for such a small amount?

There's no problem with you filing your own return while being claimed as a dependent - just make sure to check the box indicating someone can claim you as a dependent. Your return and your parents' return are completely separate, and this happens all the time with working students. Yes, Robinhood will issue a 1099-B to both you and the IRS regardless of the amount. They're required to report all trading activity. But again, with only $72 in gains, it won't trigger any filing requirement for you under the dependent income thresholds.

Does this actually work for more complex trading stuff? I've got options trading and some crypto that's a complete mess when tax time comes around.

I'm skeptical. How is this different from just using TurboTax or something? Does it just tell you if you need to file or does it actually help with the filing too?

It definitely handles complex trading including options and crypto. The tool actually specializes in analyzing investment documents including all the complicated parts like wash sales, options assignments, and straddles. It breaks everything down into plain English which saved me hours of research. This is different from TurboTax because it's more focused on analyzing your documents and explaining tax situations specific to investors rather than just filling in forms. It tells you if you need to file and explains why, plus gives you insights about your trading patterns from a tax perspective. You can use what you learn there to file more effectively with any tax software if you do need to file.

Wait, how does this service even work? The IRS phone lines are notoriously impossible to get through. Are you saying this somehow puts you at the front of the line? That seems... questionable.

This sounds like a scam tbh. Why would I pay someone to call the IRS when I can just do it myself for free? And how would they possibly get you through faster than anyone else?

The service works by using technology that continuously redials and navigates the IRS phone tree until it gets through, then it calls you and connects you directly to the agent. It's like having a computer assistant doing the frustrating part for you. It doesn't put you "ahead" of anyone, it just handles the redial process that would take hours of your time. I had the same reaction initially, but it's not about "cutting the line" - it's about not having to manually redial 50+ times and sit through the same menu options repeatedly. You're still waiting your turn, just not actively on the phone the whole time. I was skeptical too, but when I needed specific guidance on some investment tax questions, waiting on hold for 3+ hours wasn't realistic with my schedule. The video demo on their site shows exactly how it works.

Thanks! I definitely started tracking everything more carefully after reading these responses. Do you know if apps like Robinhood automatically account for wash sales on their 1099 forms?

Robinhood does report wash sales on their 1099-B forms, which is helpful. You'll see adjustments to your cost basis when wash sales occur. However, there's a potential issue - if you trade the same security across different platforms (like Robinhood and Webull), those platforms don't communicate with each other about wash sales. So while each platform reports wash sales that happen within their system, they can't detect wash sales that might occur when you sell at a loss on one platform and rebuy on another within 30 days. In that case, you'd need to identify those wash sales yourself when filing. But for your current situation with just Robinhood and small amounts, their reporting should be sufficient.

I have to respectfully disagree with this advice. While it's true the IRS is unlikely to pursue such a small amount, recommending not filing when required isn't good practice. In this specific case, OP actually isn't required to file based on the dependent unearned income threshold, but that won't be true for everyone reading this thread. Better to understand the actual rules than risk problems down the road.

Fine, technically you're right. But let's be real - the IRS is severely understaffed and focused on high-value enforcement. The chance of any consequences for not filing when you're owed a tiny refund or owe virtually nothing is practically zero. But yes, everyone should "understand the actual rules" 🙄