Is it hard to report taxes?

Question

Is it hard to report taxes to the IRS when you sell stocks? Do you do it alone? How can a person learn that, especially someone like me? I will be buying some stocks but concern about the tax implication discourage me from investing. Can you give me the steps? Is it just filing the schedule D and then sending the money?

Answer 1

Basically yes, you fill in schedule D when you sell, to show a gain or a loss.  You'll need info on when you bought it and how much you paid for it, so keep those records.

With the schedule D you'll fill out form 1040, not 1040A or EZ.  That's not as bad as it looks - a lot of the lines will just be blank.

If you buy something like TurboTax it will lead you through it.  It's messier than a form 1040EZ but not awful.

Answer 2

It is very painful.

If you buy tax software it will guide you through the process and tell you how much you owe.