Maximize your tax refund

Contrary to popular belief, having investments doesn't mean only an accounting genius can prepare your tax return. Investors can easily do their own taxes while maximizing tax savings by following a few simple tips.

"Gathering all forms and information beforehand makes preparing taxes easier and faster for everyone, but especially for investors," says Jessi Dolmage, TaxAct spokesperson. "In addition to tax forms from brokerages, employers and financial institutions, you'll also want documentation about your transactions handy. That information will help prevent you from overpaying or underpaying taxes on your investments."

Many DIY tax preparation solutions import transactions directly from brokerages or provided data files. TaxAct also offers a fast spreadsheet-style entry tool for Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, information that allows you to enter and review up to 2,000 individual transactions.

If you have hundreds or thousands of transactions, Dolmage recommends obtaining Form 8949, Sales and Other Dispositions of Capital Assets, that lists your transactions individually, from your brokerage or a service that will generate the form for you. You simply submit this form with your tax return.

Use these additional tips from TaxAct to save more time and money at tax return filing time.

Don't rely solely on your Form 1099s

When you receive your Form 1099-Bs in February and March, verify the information in each against your records. Look specifically for cost basis and date acquired. Whether that information is included on your form depends on how long you've held the asset and where the investment originated.

If your cost basis and acquisition date isn't included on your Form 1099-B, you still have to report that information on your tax return. Without it, any sales proceeds without a cost basis will be taxed as a capital gain.

If you're still waiting for 1099s or other investment information, Dolmage recommends preparing as much of your return as possible now, but wait to file until you receive it to avoid amending your return.

Report the correct cost basis

The cost basis is the purchase price of an asset adjusted for stock splits, dividends, return of capital distributions and any other basis adjustments. Using the correct cost basis is key to accurately reporting and calculating a capital gain versus a loss, the difference between the asset's sales proceeds and the cost basis.

Even if your cost basis is reported on Form 1099-B, check your investment records to verify it's correct. The cost basis reported on your Form 1099-B is based on the information available to your brokerage, which may not include data needed to calculate the true cost basis. For instance, the sale of certain employer stock options may be reported on your Form W-2 and Form 1099-B. If you don't adjust your cost basis for this, your sale may be taxed as ordinary income and as a capital gain.

If you need to report adjustments to cost basis amounts on your tax return, you'll include the adjusted amounts and an adjustment code next to each that explains the reason for the change.

Know the difference between short and long-term

Assets held for more than 12 months are considered long-term and benefit from reduced capital gains tax rates of zero, 15 and 20 percent based on your tax bracket. Conversely, short-term gains for assets held for less than 12 months are taxed at ordinary rates.

Verify the asset's purchase date before selecting the short-term or long-term reporting category for the transaction on your tax return. Remember, the date acquired may not be on Form 1099-B. Incorrectly reporting the term may result in overstating or understating your total tax liability.

When making future investment decisions, consider waiting to sell assets with large gains or holding periods approaching one year. Get more investment tax tips at, and learn more about TaxAct's affordable filing solutions at

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Upcoming Tax Dates

April 10 — Employees who work for tips
If you received $20 or more in tips during March, report them to your employer. You can use Form 4070.

April 15 — Individuals
File a 2018 income tax return (Form 1040) and pay any tax due. If you want an automatic 6 month extension of time to file the return, file Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return. For more information, see Form 4868. Then, file Form 1040 by October 15.

April 15 — Corporations
File a 2018 calendar year income tax return (Form 1120) and pay any tax due. Details

April 15 — Individuals
If you are not paying your 2019 income tax through withholding (or will not pay in enough tax during the year that way), pay the first installment of your 2019 estimated tax. Use Form 1040ES.

April 15 — Household Employers
If you paid cash wages of $2,000 or more in 2018 to a household employee, you must file Schedule H Details

April 15 — Corporations
Deposit the first installment of estimated income tax for 2018 Details

April 15 — Social security, Medicare, and withheld income tax
If the monthly deposit rule applies, deposit the tax for payments in March.

April 15 — Household employers
If you paid cash wages of $2,000 or more in 2018 to a household employee, you must file Schedule H (Form 1040). If you are required to file a federal income tax return (Form 1040), file Schedule H (Form 1040) with the return and report any household employment taxes. Report any federal unemployment (FUTA) tax on Schedule H (Form 1040) if you paid total cash wages of $1,000 or more in any calendar quarter of 2017 or 2018 to household employees. Also, report any income tax you withheld for your household employees.

April 30 — Social security, Medicare, and withheld income tax
File Form 941 for the first quarter of 2018. Deposit or pay any undeposited tax under the accuracy of deposit rules. If your tax liability is less than $2,500, you can pay it in full with a timely filed return. If you deposited the tax for the quarter timely, properly, and in full, you have until May 10 to file the return.

April 30 — Federal unemployment tax.
Deposit the tax owed through March if more than $500.

View More Tax Dates