Capital Gains

Line 13: Capital Gains

Report your net profit (or loss) from investing. You figure your profit or loss using Schedule D. If the only investment income you have to report is capital gains distributions, you may put the figures directly on line 13 without using Schedule D. If this is the case, you must figure your tax using the "Qualified Dividends and Capital Gain Tax Worksheet" on page 34 of the Instructions for Form 1040 (PDF).

Back to Step 4: Income