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However, I have capital loss of $1800 plus $500 of commission. Can I reports these capital loss to increase my deduction? How? What form should I use? I have only used 1040EZ bofore. Can I carry over part of loss to next year? What if I just file 1040EZ and forget about additional deduction and capital loss? Do you think IRS is still going to stick their neck?

You must report the capital losses since the brokerage firm will report the sale to IRS on a 1099-B. You must file a form 1040 with a schedule D. If you do not do the schedule D showing the date of sale and purchase as well as your cost basis (what you paid plus commissions) and net proceeds, IRS will assume that the whole sales price is gain. Your loss does not exceed your income so there will be no carry forward loss.
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