Do I need to report a net capital loss of under $300 from selling stocks in 2016?

[VolvoGirl]

Yes.  Otherwise the IRS will think the whole sale amount is gain and won't know it was a loss.  And a loss will help your return.  Is this for 1 sale or for several?

[jerry2000 · Accepted solution]

Yes, you do. The IRS doesn't know that you had a loss until you tell them by reporting it on your tax return. The IRS gets a copy of your 1099-B. If you don't report it, then in just under a year, you will get a letter from the IRS saying that they have evidence of income that you didn't report. They will assume that the entire proceeds of the stock sale is taxable as ordinary income. They will include a bill for additional taxes, plus penalties and interest for failure to pay. You really don't want to have to deal with that, so report your 1099-B on your 2016 tax return and be done with it.