I am having trouble finding this info on my own...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?Thanks.
You won't be filing a 1040EZ this time. If your ordinary dividends are more than $400, you will need to file schedule B. You may also need schedule D for the st and lt cap gains but under certain circumstances, they can be reported directly on form 1040, line 13. Your mutual fund company will send you a form 1099-DIV. You can read or download instructions and forms at the IRS address shown below. http://www.irs.ustreas.gov/prod/forms_pubs/index.html Good luck and ask more questions here if you get stuck.Hope this helps to get you started.
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.TMF ExROPhil Marti
Check into understanding Mutual Fund distribution dates. It is critical in December to know when funds are going to distribute income and gains. If you had bought this fund on Thursday instead of Monday, you wouldn't owe any of these taxes. In addition, you could have got it at a cheaper NAV, as the NAV decreased by the amount of the distribution.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |