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[[I am in the situation of wanting to file amended returns for 1995 and 1996 due to a capital loss
which was not reported in 1995. I know I need to file 2 copies of 1040-X, one for each year, and
also a Schedule D for each year.

Here's the question. In 1995, I used 1040-EZ rather than 1040. Since 1040-EZ cannot be used
when filing a Schedule D, do I need to also submit a newly filled out 1995 1040 as well?]]

That would certainly be your best course of action. Complete and attach the full 1040 as backup computations to your amended return.

[[ My brother and sister are in the same situation (of needing to amend returns due to the 1995 loss),
but their earned income in 95 was low enough that they did not file tax returns for that year. I am
guessing that in addition to the 1040-X and Sch D, we will have to fill out a 1995 form 1040 for
each of them. Is this correct?]]

Again, yes. Depending upon their AGI, they may or may not have to take the $3k capital loss, and may have a larger carryover.

For additional infomration on amended returns, see IRS Form 1040x and instructions. You might also want to check out IRS Publication 556.

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