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[[This is about trading and taxes but let me give a quick preface.

I am have been on disability income of less than 13,000 per year since roughly
the beginning 1996. As far as the rules that I have read about disability income
the disability income is nontaxable unless I make over a certain amount ABOVE
it (1999 is at $9600 over the 13K)which I didn't because I did not work. ]]

Well, that COULD be true, depending upon certain factors...if you are talking about SSI disability. If you are talking about private disability, it may or may not be taxable depending upon other issues. So the first thing that you must do is be CERTAIN how your disability is impacted...taxable or not. If your disability is SSI, I have a post in the Taxes fAQ area that you can read that will give you the guidelines.

[[ With my extra time I UnFoolishly did alot of trading in stocks. In 1998 for my
trading I had some gains but I had as many losses so I came out with a slight
*loss*.

In summary; My disablilty income is nontaxable, I lost money on trading stocks
in 1998. Do I have to file income tax returns because I traded stocks even
though, for tax purposes, I have no income and I lost money in my trading of
stocks? ]]

Yup...because Uncle Sammy only sees half of your stock trading transactions...the SELL portion. If you made a lot of trates, let's say $100k worth of sales, all the IRS sees is that $100k. Unless you file your tax return, IRS will never know that your cost basis in all of those trades was actually $101k...for an overall loss of $1k.

And if you don't file the return, you can rest assured that Uncle Sam will come to call in order to discuss your cost basis in all of these sales...in order to satisfy himself that you didn't make a whole bunch of money with respect to all of the trades. So you are stuck wil filing the return.

TMF Taxes
Roy

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