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Form 1040A, Line 10 is Capital Gain Distribution. According to the instructions, that field should be populated with box 2a of Form 1099-DIV.

When I look at Form 1099-DIV, box 2a provided by my brokerage, it says $0. However, I did sell stock for a net gain in the past tax year.

If Form 1099-DIV, box 2a shows $0, does that mean my capital gains are too small to be taxed, and I should also leave Line 10 blank or fill in $0?

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1 Answer 1

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Capital gain distribution is not capital gain on sale of stock. If you have stock sales (Schedule D) you should be filing 1040, not 1040A.

Capital gain distributions are distributions from mutual funds/ETFs that are attributed to capital gains of the funds (you may not have actually received the distribution, but you still may have gain attributed to you). It is reported on 1099-DIV, and if it is 0 - then you don't have any.

If you sold a stock, your broker should have given you 1099-B (which is not the same as 1099-DIV, but may be consolidated by your broker into one large PDF and not provided separately). On 1099-B the sales proceeds are recorded, and if you purchased the stock after 2011 - the cost basis is also recorded. The difference between the proceeds and the cost basis is your gain (or loss, if it is negative). Fees are added to cost basis.

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I was hoping to avoid 1040, but I guess I have no choice. Thank you for the detailed explanation. :) –  merlin2011 Mar 25 at 4:34

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