topic Re: Stock Sales in Retirement tax questions

Stock Sales

rmf54 — Tue, 24 Feb 2026 05:34:55 GMT

We sold stock that was reported on a 1099-B. When entered into the turbo tax program the funds are categorized as regular income instead as capitol gains which they should be. How do I correctly enter the information on the 1099-B so the funds are treated as capitol gains?

Re: Stock Sales

JulieS — Mon, 10 Apr 2023 14:54:20 GMT

If your capital gains are short term, they are still taxed at your ordinary income rate. Only gains form the sale of assets held more than one year are treated as long term capital gains.

This is where to enter 1099-B in TurboTax:

Select Federal, then Wages & Income.
Scroll down and look for Investments and Savings.
Expand the section and click on Start or Revisit to the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B).
Click +Add investments at the bottom of the summary.
Follow the steps to import your 1099-B, or scroll to the bottom and select Enter a different way.
Select Stocks, Bonds, Mutual Funds, click Continue.
Fill in your information from the 1099-B

Re: Stock Sales

rmf54 — Mon, 10 Apr 2023 15:07:24 GMT

Thanks, I have entered the information as you advise. The sale was categorized as "D": Long term covered. I would think this would then identify the funds as capital gains?

Re: Stock Sales

JulieS — Mon, 10 Apr 2023 15:42:11 GMT

Yes, sales in category D are long term capital gains.

Re: Stock Sales

rmf54 — Mon, 10 Apr 2023 15:45:37 GMT

Yes, thanks. When I looked through the pdf tax form I then see the proceeds have been taxed at the capital gains rate which I believe is correct. I did not see that when in the turbo tax program, only the total taxable income which confused me into thinking the proceeds were being taxed at the normal income rate. Thanks again