“I Only Made $75 Selling Stocks in 2025 — Do I Really Have to Report This?”
“It’s such a small amount — does the IRS really care?”
This is one of the most common questions from new and small-dollar investors using apps like Robinhood in the 2025 tax season.
Some investors sold a stock and made around $75, others earned a few dollars in dividends or interest but never received a 1099 form.
The confusion usually comes down to one issue: what actually triggers a tax reporting requirement.
In this guide, we clearly break down stock sales vs dividends vs interest and explain why “no 1099” does NOT mean “no reporting” — from an Enrolled Agent (EA) perspective.
- 0️⃣ Case Study: What Does This Situation Look Like?
- 1️⃣ Is a $75 Stock Profit in 2025 Really Taxable?
- 2️⃣ Stock Sales vs Dividends vs Interest — Key Differences
- 3️⃣ “Under $10 Means No 1099” — What That Actually Means
- 4️⃣ What If Robinhood Didn’t Issue Any Tax Forms?
- 5️⃣ The Real Risk of Not Reporting (Cost Basis & CP2000 Notices)
- 6️⃣ EA Practical Checklist for Small Investors
- 7️⃣ Top 3 Google Questions Investors Ask
0️⃣ Case Study: What Does This Situation Look Like?
Most investors asking this question fall into a mix of the following two scenarios:
- Scenario A (Stock Sale): Sold shares in 2025 and realized about $75 in profit
- Scenario B (Dividend / Interest): Earned a few dollars of dividends or interest but received no 1099 form
The mistake happens when people treat all investment income as one category and assume “no tax form = no reporting requirement.”
1️⃣ Is a $75 Stock Profit in 2025 Really Taxable?
Yes. A $75 stock gain from a sale in 2025 is reportable income.
The IRS does not exempt transactions simply because the dollar amount is small.
From the IRS perspective, the key factor is not the amount of profit — it is whether a sale occurred.
Once you sell a stock, that transaction becomes a taxable event, regardless of whether the gain is $75 or $7.
Sold shares in 2025 with a short-term capital gain of $75
→ Reported on Form 8949 and Schedule D
→ Actual tax owed may be minimal or even $0, depending on total income
Remember this rule:
Reporting is based on the transaction, not on whether you received a 1099.
2️⃣ Stock Sales vs Dividends vs Interest — Key Differences
These income types are often confused, but the tax treatment is very different.
| Type | When It Occurs | Common 1099 | Key Point |
|---|---|---|---|
| Stock Sale (Capital Gain/Loss) | When shares are sold | 1099-B | ✅ Always reportable if sold |
| Dividend Income | While holding shares | 1099-DIV | ✅ Taxable even under $10 |
| Interest Income | Cash balance or sweep accounts | 1099-INT | ✅ Reporting required even without a form |
In short:
Stock sales depend on whether you sold, while
dividends and interest depend on whether income was earned.
3️⃣ “Under $10 Means No 1099” — What That Actually Means
This is one of the most misunderstood rules in investing taxes.
Brokerage firms may choose not to issue a 1099-DIV or 1099-INT if the total amount is under $10.
However, this is a broker reporting threshold, not an IRS tax exemption.
Broker reporting rules ≠ IRS income reporting rules
No 1099 does not mean no income — it simply means the broker was not required to issue the form.
The IRS rule is simple:
If income exists, it is generally reportable — regardless of size.
4️⃣ What If Robinhood Didn’t Issue Any Tax Forms?
This situation is extremely common among small investors.
Dividend income: $4.20
Interest income: $3.10
Total: $7.30
No 1099-DIV or 1099-INT issued
EA approach:
→ Include amounts using account statements
→ Tax impact is usually negligible
→ Eliminates reporting mismatch risk
From an EA perspective, this is not about paying more tax —
it is about avoiding unnecessary IRS correspondence later.
5️⃣ The Real Risk of Not Reporting (Cost Basis & CP2000 Notices)
The biggest danger of skipping small stock sales is not the tax — it’s IRS misinterpretation.
Cost basis reporting is the critical issue.
If the IRS receives only the gross proceeds from a broker and the taxpayer fails to report the sale, the IRS may assume the entire sale amount is taxable income.
- Missing cost basis: A $75 gain can be misread as a $1,800 taxable sale
- CP2000 notice: Automated IRS letter asking why income was omitted
- Practical cost: Time, stress, and documentation far exceed the small gain
Saying “I didn’t get a form” is weak IRS defense.
A defensible return includes small transactions reported correctly.
6️⃣ EA Practical Checklist for Small Investors
- Sold stock in 2025? → Report it, regardless of profit size
- No 1099 received? → Use account activity to determine income
- Cost basis unclear? → Verify purchase price before filing
- Main goal: Reduce IRS risk, not chase zero-tax outcomes
Key takeaway:
Tax reporting is based on what happened — not on what forms arrived.
7️⃣ Top 3 Google Questions Investors Ask
→ No. Reporting and tax owed are separate concepts.
Q2. Do I report losing trades?
→ Yes. Losses must be reported to offset gains or carry forward.
Q3. Are foreign brokers treated the same?
→ Generally yes, though additional reporting rules may apply.
EA One-Line Summary
“Small gains aren’t risky — unreported sales are.”
This article is based on 2025 U.S. federal tax law.
State tax rules and individual circumstances may differ. This content is for general education only and does not constitute personal tax advice.