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My daughter had her first job this year and she had taxes withheld. She also has dividend earnings. I'm sure she doesn't owe anything but I'm not sure what forms I have to fill out for her. She has 3700 in earnings, 24 in interest, Ordinary dividends (1099-DIV box 1) of 27, Total capital gains distributions (1099-DIV box 2a) of 183 and Qulaified 5-year gain (1099-Div box 2c) of 48. This is well below the 1500 limit but I have no idea what to do with boxes 2a and 2c.

Do we have to do a 1040 w/schedule D or can she do a 1040A? It looks like you can't do a 1040EZ if you have dividends.

You're right in that dividends and capital gains cannot be reported on a 1040-EZ. As has already been mentioned, I always recommend the 1040 because you don't have to waste any time deciding if you can use it or not, but your daughter can use the 1040A with this set of facts. Because all of her income will be wiped out by the standard deduction, the 5-year gain calculation doesn't matter.

Phil Marti
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