Basics Intermediate: Reporting Investment Income on Your Federal Tax Returns

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1.
To itemize your tax deductions, use ______.
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Schedule A. This schedule is used for the separate listing of deductions.
2.
The amount of taxable gain or loss on an asset is the difference between the amount you sell it for and its basis.
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True. The amount of taxable gain or loss on an asset is the difference between the amount you sell it for and its basis.
3.
You can receive helpful tax information directly from the IRS by reading IRS publications.
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True. Various IRS publications provide needed information that helps you fill out your forms and discern what is and is not taxable.
4.
If you earned income from dividends last year, you will need to fill out IRS Form 1099-R to report them.
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False. If you earned income from dividends last year, you will get Form 1099-DIV in the mail.
5.
The revised 1040 form now includes how many schedules for recording additional information?
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3. The 1040 now includes a new set of three schedules on which you will record adjustments, credits, taxes, and other information.