Tax Tip: 1040A Users May Report Mutual Funds Distributions
If you must use Form 1040 for some other reason, but have no other capital gains or losses, you can skip Schedule D and report your capital gains distributions on line 13 of the 1040, checking the box to indicate that Schedule D was not required.
In either case, you would use a worksheet in the instruction booklet to get the advantage of the lower capital gains tax rates when figuring your tax.
But if the mutual fund identifies any of the capital gains distributions as being from the sale of collectibles, depreciable real property or qualified small business stock, you will have to use Schedule D (Form 1040) to figure your capital gains tax.
All of these tax forms are available for download at the IRS Web site .
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This daily Tax Tip has been provided by the IRS