Basics Intermediate: Reporting Investment Income on Your Federal Tax Returns

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1.
If you experienced capital gains or losses, you should use Schedule D to report them at tax time.
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True. IRS Schedule D is used for this purpose.
2.
Dividends reinvested to buy more securities are not taxable as ordinary income.
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False. Dividends reinvested to buy more securities are taxable as ordinary income (except in the case of tax-sheltered accounts).
3.
If your investment company reports undistributed capital gains, you will receive IRS form 4952.
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False. If your investment company reports undistributed capital gains, you will receive form 2439.
4.
IRS Publication 590 covers _______.
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Individual retirement accounts. Publication 590 is your guide for IRA tax issues. It is divided into two versions -- 590a and 590b.
5.
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.