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Citydata won't let me edit the above, so needless additional post; IMHO you don't need an accountant OP unless you just want advice. Turbo Tax will import the 1099s for you and calculate everything automatically.
In general, capital gains are taxed only when they are realized. Unrealized gains and losses are also commonly known as "paper" profits or losses, which implies that the gain/loss is only real "on paper."
So, if you didn't cash in the investments or sell them, I believe you don't have to pay taxes on those since they aren't realized yet and are only paper gains.
I believe with the CD, that works different than investments and you will likely receive a 1099-INT (interest income) or something along those lines for the CD interest you accrued in the taxable year, not at CD maturity.
No one else has said it already, so I'll point out the obvious: if you've held a mutual fund for 6 months or so chances are it paid at least some dividends. The brokerage will give you a 1099 which you will need to file along with your W2. There's a good chance the brokerage hasn't provided the 1099 just yet, Fidelity just published and Vanguard estimates mid Feb for example.
A 1099 does not have to be filed with your tax return unless it shows taxes withheld. The info on the 1099 has been reported to the IRS, so it only needs to be shown on the return.
A 1099 does not have to be filed with your tax return unless it shows taxes withheld. The info on the 1099 has been reported to the IRS, so it only needs to be shown on the return.
1099s show more than taxes withheld fwiw there are many variations
1099s show more than taxes withheld fwiw there are many variations
That's true, but the IRS has all of that info from the provider of the 1099. The IRS only requires a 1099 be included with the return if withheld taxes are shown. I have received hundreds of various types of 1099s over the years and never filed one with my tax return because I never had withheld taxes.
That's true, but the IRS has all of that info from the provider of the 1099. The IRS only requires a 1099 be included with the return if withheld taxes are shown. I have received hundreds of various types of 1099s over the years and never filed one with my tax return because I never had withheld taxes.
Investors most often don’t know the classification of the dividends, interest, capital gains etc without having access to the 1099. Including the physical document with your return isn’t really relevant
Here is a transcript of what Treasury Secretury Yellin said on September 28, 2021 as she testified on the coronavirus and CARES Act before the U.S. Senate Banking, Housing and Urban Affairs Committee.
Quote:
“Senator Shelby, I do support eliminating stepped up basis. The reason is that a very large share of the income of wealthy individuals is simply never taxed. Individuals hold onto these assets during their lifetime, that income is never taxed. And we know that for some of the wealthiest individuals in the country, they pay very low taxes overall because most of their income takes the form of unrealized capital gains. The Biden administration proposed that at death those gains be taxed. And with careful consideration, not in any way to harm the prospects of family owned farms or small businesses, there were substantial exemptions to protect them. Even if there is not actually taxation imposed at death, getting rid of stepped up basis would mean that in air would inherit the original basis of the asset. And when that person eventually sold the asset, taxes would be paid. But I regard step up of basis as a kind of loophole that allows a very large portion of income in this country of the wealthiest individuals to go untaxed.”
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