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Subject:  Re: Mutual Fund Tax Liability Date:  1/8/2001  9:30 PM
Author:  TMFExRO Number:  44066 of 128043

This will be my first year filing something other than a 1040EZ. I bought into Vanguard's Total Stock Market Fund on 12/18. On 12/20 I received an Income Dividend, ST cap gain, and LT cap gain.

What the heck do I do with those numbers?

Congratulations on your graduation to the 1040. As previously noted, you'll receive a 1099-DIV showing the distribution. The dividends and short-term capital gains should be lumped in the ordinary dividends box, and you report them on Schedule B, or directly on line 9 of the 1040 if Schedule B is not required.

Assuming you didn't sell any shares of anything during the year, you'll report the long-term capital gain on line 13 of the 1040, check the box, and calculate your tax using the worksheet in the instructions for line 40.

It's easier that it sounds, once you get into it.

Phil Marti
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