I received a notice from the IRS saying that I owe $4342 from 2013. I filed married filing jointly. Mine and my wife's income was low enough that we qualified for the earned income credit of $1500 each. However, because we made $3436 from sale of stock, apparently we don't qualify for the earned income credit because if sale of stock is over $3300, then you automatically don't qualify.==========>>Correct; for 2013,you
may not earn more than $3,300 in investment income. Investment income includes interest, dividends, capital gains, and royalties.
I think that if I write off $137 in securities losses, we won't owe because we'll be below the $3300. =======>>>>>>>correct;
What can I write off as security losses other than stocks?========>> Equity Securities allow you to own shares of a corporation. The most direct way is to buy stocks of a company yourself. You can also profit by buying shares of a mutual fund;debt Securities allow you to provide loans, called bonds, to a company or even a country; derivative Securities are always trying to find ways to get a higher return with less risk. Therefore, innovative derivatives of basic stocks and bonds are often developed. Stock options allow you to trade in stocks without actually buying them upfront. |