Do i need to pay tax on selling a stock of $5

Forum|Forum|5 years ago
February 24, 2021
1 reply
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Hi team,

I got a free stock of worth $5 while joining Robinhood which I sold after few days at same price.

So technically i earned $5 in 2020.

Do i need to pay taxes on that $5?

i heard if u have earned less than $10, you are exempt and not supposed to pay any taxes on it.

please clarify and help

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robtm

If you received a 1099-b from RobinHood, then you need to report it. If you did not receive the 1099-b then you don't have to report it. Usually amounts under $10 do not receive 1099's.

akj1357Author

Thanks, i will report it.

But my question is, do i need to pay tax on it?

robtm

If you have to report it, you will be paying taxes on it. If you do not have to report it, then you will not be paying taxes on it. It all depends on whether you received a 1099-b or not.