Basics of Investing

Archive for March, 2007

Question: I just began online investing through an offer with my company. I have never invested before. How will my tax ?

filing be effected and will the reputed online company provide the needed documentation for tax filing?

If I am a single individual beginning the online investment venture, can I still use the 1040 EZ?

Thank you.

Answer: Investing involves buying something. Sometimes what you buy kicks off interest, dividends and capital gain distributions. If you get any of those, you must file either a 1040A or a 1040. If you sell, you will get a broker statement for the sale–those must be reported on a 1040 schedule D. So no, at some point you can’t use a 1040EZ.

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