HOw to file for tax after selling stocks?

Question

If I buy stocks that pay dividends and hold it for the long term and sell it .later, how do you file for tax? Do I need to hire a accountant? I'm a student and I'm just clueless. Can you explain me in detail?

Answer 1

I know I am not much help but I always use Turbo Tax. They have a version called Turbo Tax Deluxe that will take you through a step by step question process and will help you file your taxes with ease. It really is fool-proof (after all, I can use it LOL).

Seriously though, Turbo Tax makes it a breeze for stuff like that. Just be sure you pick the right edition of Turbo Tax and have all your paperwork handy.

Answer 2

You'll show the info on schedule D.  You'll need to know your basis (what you paid for the stock in the first place, plus any reinvested dividends - if you got dividends but reinvested them, they were still taxed the year you got them).

You might want to have a tax preparer do your taxes, but will still need to give them the above info.  If you use something like turbotax, it will guide you through the stock part.

Answer 3

No need to worry about that, the trading company should isse you a IRS form early of next year, state how much tax you has to pay, normally if you lose money in your porfolio, you will not pay pax, common sense since you didn't gain money, but if you did gain in your portfolio in the whole fiscal year, you will has to pay tax.

Answer 4

by begging  the irs

Answer 5

There are two filings you will have to make.  First, each year, if there are dividends, you will get a statement telling you how much in dividends you earned.  You will report that under your annual income.

Second, when you sell the stock, you will have to claim your capital gains.  This is rally just a fancy term for profits.  Simply, if you buy 100 shares at $10 per share ($1000) and sell them for $15 ($1500), your capital gains are $500 and you would pay taxes on the $500.  The next question is how much tax - there are two different tax rates, long-term gains and short-term gains.  The short-term capital gains tax rates are higher and apply to stock bought and sold within a year (365 days, not calendar year).

In reality, if you are going to be buying and holding, just keep your purchase receipts and you shouldn't need an accounant until you decide to sell everything.  If you plan on turning over your stock on a regular basis, an accountant would be a good idea.

Answer 6

long term cap gain.if you sold for more than you bought it for.............the dividend is dividend ....call the IRS.they will help you and they are free.........