how to report stock sales on tax return

Valentina

I recently sold some stocks and I'm not sure how to properly report these transactions on my tax return. I know capital gains and losses need to be accounted for, but I'm confused about the forms to use, how to calculate the cost basis, and whether short-term vs. long-term gains matter. Do I need to report every single sale, or can I aggregate them? What if I sold stocks at a loss—does that affect my taxes differently? Any guidance would be really helpful!

Cooper

You'll need to use Form 8949 and Schedule D to report stock sales. The key is to separate short-term (held less than a year) and long-term gains (held over a year) because they're taxed at different rates. Your brokerage should provide a 1099-B form with the details, but double-check the cost basis—sometimes it’s missing or incorrect.

Valentina

Cooper Thanks for clarifying the forms! I didn’t realize short-term and long-term gains had to be separated—that explains why my draft return looked off. I’ll dig into my 1099-B to verify the cost basis before submitting.

Thomas

If you sold stocks at a loss, you can use those losses to offset gains, which can reduce your tax bill. Just make sure to follow the IRS wash-sale rule—you can’t claim a loss if you buy the same stock within 30 days before or after the sale. It’s a common mistake that could trigger an audit.

Lainey

I’ve found that using tax software like TurboTax or H&R Block makes this way easier—they auto-import 1099-B forms and calculate everything for you. If you’re doing it manually, though, keep meticulous records of purchase dates, sale prices, and fees. Even small discrepancies can lead to headaches later.

Jessica

Don’t forget state taxes! Some states have their own rules for capital gains, and a few (like California) don’t differentiate between short-term and long-term. Check your state’s tax website to avoid surprises when filing.

Hudson

If you’re overwhelmed, consider hiring a CPA for this part of your return. I did last year after trading frequently, and it saved me hours of stress. They caught deductions I didn’t even know existed, like reinvested dividends affecting my cost basis.