Let's say, my short term capital loss this year was $2000. I my short term capital gain was $10000.
But I also have a long term capital gain of $100.
Let's also say I'm in the 22% tax bracket with annual salary of $50000.
1. How much can I deduct and how do I exactly go about the deduction when I file my tax next year?
My guess was that I can deduct $2000 off $10000 , and obligated to pay tax from $8000 or $8100 I made over the year.
2. What form do I need besides 1099B?
2a- Is it 1040 Schedule D?
2b- If so where can I get this?
2c - Where and how do I submit this?
3. I'm a new to the stock trade and these steps seems overwhelming. Are these all the steps that could be done through Turbotax? Does it have to be through "Turbotax Live CPA" or could it be done through regular step by step process by myself using Turbotax program?
Thank you so much in advance.
Yes, your total gain would be $8,100. The short-term gain would be taxed at your regular income tax rate and the long term gain at the favorable capital gains rate.
Yes, the regular TurboTax can handle these transactions and will create all necessary forms. All you need to do is enter/import your 1099-B information and TurboTax will walk you through the process. Please see Where do I enter a 1099-B?