Have a Tax Question? Ask a Tax Expert
When a company files for chapter 11 that does not mean the company is worthless. Chapter 11 permits the company to keep operating and reorganizes under bankruptcy. A loss on a stock can only be claimed when the stock is totally worthless. If the stock eventually becomes worthless then the loss that you would claim would be your investment in the stock.
If you are not going to owe any federal income taxes this year then you will not have to pay estimated taxes. Unemployment benefits and interest income are taxable. Social security benefits start to become taxable if the sum of 50% of the benefits you receive plus your other taxable income exceeds the base amount of $25,000 if filing single ($32,000 if married filing jointly). In 2008, generally you will not have to file a tax return if your gross taxable income from all sources (unless you have self-employment income of $400 or more) is less than $8,950 if you are under age 65.
I am confused with your answer. I did not work during the 2008 year. I received unemployment and Social Security Surviors benefits since my husband passed away.
I have interest from cds, bank accounts. All of this combined will be over 25,000.
I have 3 dependents. Will I have to file an estimated tax now to pay towards money
that will have to be paid when I file my taxes in 2008? Where would I get such a form?
I just do not want a penalty. Also my other stock did earn money when sold so I guess
even though my stock is all at a terrible loss I still have to pay on the money gained at
the time of sale right?
Thanks for your help. I would like this answer
My husband passed away in2007. The stocks are in my name,and my kids names with me as the caretaker. My girls are 11,13, and 15. my social security survior benefits were about 11,000. The unemployment was about 5,000. Interest could be about 10,000 but that might be to high. Stock gain in Jan 08 was 9,000 but reinvested and now losing in stocks. I have a loss between me and my girls stocks around 30,000 loss but like you stated they are not chapter 7. The stock that has filed chapter 11 is not trading..its zero right now. The sad part all this was for my girls future after my husband passed and now its disappeared. Lets just say the stockbroker lost his job because of what he did to us and others...quick buying and selling fast and not being conservative as I asked.
THanks for your help.
Since your husband passed away in 2007 and you have dependents you can file as a qualifying widow. By filing as a qualifying widow with 3 dependents you can have up to $24,900 (based on standard deduction and exemptions) of taxable income without liability for federal income taxes. Your gross taxable income would be approximately $26,700 ($5,000 + $10,000 + $9,000 + $2,700 of social security benefits) based on the information you provided. A portion of your social security benefits would be subject to tax (approximately $2,700). However, you can claim the child tax credit for your children which will eliminate any tax you owe. http://www.irs.gov/pub/irs-pdf/p972.pdf