it depends on how many stocks you sold, purchase price and selling price. I would advise to enter your sales because it will reduce your tax even if a small amount. If there is an overall loss it will be used to reduce other taxable income up to a maximum of your actual loss or $3,000 per year under the tax law. Any balance would be carried forward.
In your example, if I understand your information, you sold stock with different purchase amounts and dates.
- Free stocks - no purchase price, sell price of $3.96 per share - all sale proceeds are taxable with no cost basis
- Purchased stocks - purchase price $5 per share sold for $3.96 per share will show a loss per share
- The net gain will be offset by the net loss - result will be taxable gain or loss
If you received a 1099-B enter your sales using the information in the link below.
If you didn't receive a 1099-B you can enter it as a sale of Investment as 'Other'.
- Open or continue your return.
- Navigate to the investment sales section:
- TurboTax Online/Mobile: Go to investment sales. If using this application, make sure it is open
- TurboTax Desktop: Search for investment sales and then select the Jump to link.
- Or Personal Tab > Continue > I'll choose what I work on > Scroll to Investment Income > Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other
- Answer Yes to the question Did you sell any of these investments in 2024? (or Okay! to Time to kickoff your investments!).
- If you land on the Investment sales summary or Your investments and savings screen, select Add More Sales or Add investments.
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