Just to add to EJ's thoughts. On the stock trading
Post# of 16816
Just to add to EJ's thoughts. On the stock trading front;
You should receive a 1099B from your broker by mid Feb. If not you usually can download it.
3 possibilities;
1. You made money and had no losses. Then fill out schedule D and the income will be taxed at the capital gains rate. (If it's small, they'll be limited or no effect on you)
2. You lost money. Again, schedule D. You can only take 3,000 in losses per year and carryover the rest. (this assumes you're not a professional trader lol) If you had no other income, this will have zero effect on your tax.
3. You lost some and you made some. You take the difference and file it on schedule D. If a loss, then deduct up to 3,000. If an overall gain report that.
One last note on capital gains. You have to know the dates that you bought the stock and the dates you sold. Stocks held for more than a year are considered long term gains(losses). If you held them for less than a year, than they are short term capital gains(losses).
One final note. Judging from your situation, you are a student living at home with no other income. (Even if you live on campus, you're still considered as living at home) If that is the case, then I can't stress this enough. DO NOT CLAIM YOURSELF ON YOUR TAX RETURN!
You should claim single and no other deductions. You are still a dependent of mom/dad and you will be taking away a deduction that they are entitled to. Claiming yourself will be of no benefit to you and will deny them a good sized deduction. I've seen it a hundred times over the years. It can be fixed but it's a mess.
Hope this helps. PM me any time if you need to follow up.
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