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apl0029
New Member

Never filee taxes before and I have a 1099

So last year, I got access to my brokerage account and got a little crazy with it by selling all most of the stocks.

 

Earlier this year, I got a 1099 form from Vanguard and the gain/loss is about $5000. I'm just realizing I might be screwed. I'm genuinely scared and I don't want to go to jail or anything like that.

 

Do I have to file a 1040, which I've never done before or what should I do? I'm debating on going to an IRS office and asking help, but if I can get immediate help here, I would like to do so. I will gladly pay penalties and everything, I just don't want to be in trouble.

 

Please help, I'm 21 and I'm just scared out of my mind.

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3 Replies
rjs
Level 15
Level 15

Never filee taxes before and I have a 1099

You won't go to jail. Your problem is minor, and you can easily take care of it.


If $5,000 of gain from the sale of stocks is your only income, you probably owe very little tax, and possibly none at all. But you probably do have to file a tax return.


You didn't say that you worked in 2021, and you have only about $5,000 of investment income, so I assume that someone else is supporting you. If that's your parents, or someone else that you trust, ask them to help you with your taxes. They must either be familiar with doing it themselves, or have someone who does their tax returns for them and could also do yours.


The IRS office will not help you prepare a tax return. If you want to do it yourself, TurboTax will lead you through it. You can use TurboTax Online or buy the CD/Download TurboTax software and install it on your own Windows or Mac computer. Either way you should use the Premier version for reporting the sale of stock. If you use TurboTax Online you have to use Premier for stock sales. If you use the CD/Download TurboTax software you could get away with a less expensive version, but it's worth paying a few bucks more for Premier because it will give you detailed guidance for reporting stock sales. For a tax return with stock sales, I would not recommend trying to do it on your phone.


If someone else is supporting you, that person can probably claim you as a dependent. If so, when you do your tax return, be sure to check the box that says someone else can claim you as a dependent.

 

rjs
Level 15
Level 15

Never filee taxes before and I have a 1099

If you live in a state that has income tax (most states do), you will also have to file a state tax return. TurboTax will lead you through that also.

 

Never filee taxes before and I have a 1099

 

Turbo Tax still has a Free Edition for very simple returns. But they are no longer participating in the IRS Free File website.  To enter stock sales you will need at least the Premier version.

 

Start a Turbo Tax return here,
https://turbotax.intuit.com/personal-taxes/online


Or find another free offer at IRS Free File
https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

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