Can I still use the 1040ez instead of the 1040 if i have $50 in capital gains? Will I be penalized for not reporting $50?
2007-04-16 09:22:53 · 2 answers · asked by Dan K 1 in Business & Finance ➔ Taxes ➔ United States
You can't use 1040EZ if you have any capital gains. You must file Form 1040 and attach Sechedule D. If you don't claim the CG, the IRS already knows about the sale of the securities and will assume a cost basis of $0 and assess the tax from there, plus penalties and interest from the filing deadline.
2007-04-16 09:39:18 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
No, you can't file a 1040EZ if you have any capital gains income. And yes, if you just don't report it, you'll hear from the IRS eventually and get a bill for the additional taxes plus interest and possible penalties.
Do it right the first time. It will be less trouble in the end.
2007-04-16 13:05:02 · answer #2 · answered by Judy 7 · 0⤊ 0⤋