I received a 1099-B for stocks I have, do I need to include this in my taxes? How will it affect me?

Answer 1

A 1099-B would be for stocks you SOLD, not stocks you have. Any sales must be reported on schedule D, and if you had a net gain on them, you'd pay taxes on the gain.

Sometimes brokers send combined statements out for interest, dividends, capital gains distributions, and sales. All of those have to be reported. But if you got something like this and there aren't any sales on it anywhere, then just report the other items. There's usually a summary up front that shows the catagories of income detailed on the statement. But if it says 1099-B, there are probably some stock sales somewhere in there.

Answer 2

A 1099-B is included in income. Use schedule D to report your stock sales (1099-B) and other capital gains. Don't forget to get your cost basis including any reinvested dividends to decrease the taxes due on your sales. If you are having problems getting cost basis, contact your broker's service unit.

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Answer 3

You sure do! If you don't, the IRS will assume that your basis is $0 and will hammer you with back taxes, penalties and interest.

File Schedule D with your return and calculate your capital gains or losses. You'll need to know the cost of the shares you sold, along with the acquisition date(s) of the shares to complete Schedule D.