I have finished entering 1099-B information, but do I need to treat the check received from stock sales as some other kind of income? How does this get reported?

[Bsch4477]

Reporting 1099-B takes care of what the IRS needs to know about your stock sales. 

[VolvoGirl]

The Net gain or loss on the sales will be on 1040 line 7.  You pay tax on a net gain.  A loss will be subtracted from your other income (up to 3,000, the rest you carryover to the next year).

[JohnB5677 · Accepted solution]

No, if you've entered your 1099-B, and your broker issued a check you do not have to report anything else.  It's much like taking a withdrawal from your bank account.

Please double check your 1099-B and confirm that you did not have any 1099-DIV or 1099-INT income that may not have been reported.

If this does not completely answer your question, please contact us again and provide some additional details.

[Maxcabler]

Thank you for your reply. I'm certain I've provided the necessary information on the 1099-B to completion, and it has provided a 'capital gains income' amount, but I don't see it affecting the dues up top. I don't see any more steps to complete either. Could this be because my income could be below a threshold for that year or something? Seems like I'm missing something, but I'm not sure what that could be here. Thanks again! 

@JohnB5677 

[Maxcabler]

@JohnB5677 

So to be clear, checks received from stocks issued by a broker do not need to be reported as another income? Only 1099-B needs to be reported? I've completed all the information in 1099-B and it states a certain amount of 'capital gains income', but it hasnt affected the dues up top. Very confused, wondering if I'm missing something important. I think this could be because income is below a threshold for that year, but it's unclear. Wanna make sure I'm not underestimating what could be owed due to misunderstanding. Thank you for your input, any more information that could provide clarity is sincerely appreciated! 

[JohnB5677]

You may be onto something.  You may have a zero-tax rate.

"Capital Gain Tax Rates

The tax rate on most net capital gain is no higher than 15% for most individuals. Some or all net capital gain may be taxed at 0% if your taxable income is less than or equal to $41,675 for single and married filing separately, $83,350 for married filing jointly or qualifying surviving spouse or $55,800 for head of household."

Please see IRS Topic No. 409 Capital Gains and Losses listed under Capital Gain Tax Rate

[Maxcabler]

@JohnB5677 

Thank you so much for confirming this, as this is my first time dealing with capital gains and 1099-B. If I am below the threshold for that year (which is the case) and the 1099-B has been completely reported so far, then there is nothing else to deal with as far as that matter goes? Nothing else to report other than regular wages and expenses for the year? I just want to make sure I'm not misunderstanding, it's all new to me. Thank you so much again! 

[JohnB5677 · Accepted solution]

This is my first time dealing with capital gains and 1099-B. 

• You always learn the most from the first time.

If I am below the threshold for that year (which is the case) and the 1099-B has been completely reported so far, then there is nothing else to deal with as far as that matter goes? 

• That is correct.  Your 1099-B issue is closed, and you got a benefit that you didn't expect.  You can always ask questions, but TurboTax can do the heavy lifting.

Nothing else to report other than regular wages and expenses for the year? 

• The wages mat effect your zero-capital gain status.  If it does, TurboTax will adjust for it.

I just want to make sure I'm not misunderstanding, it's all new to me. 

• You have done just fine.  It's been a pleasure to work with you and continue to ask questions as needed.  We have a team here that can help.

[Maxcabler]

@JohnB5677 

Much appreciated John, thank you so much again!