Brokerage Account Tax Preparation,
Without the Stress
A taxable brokerage account puts a set of tax events on your return that a paycheck never does. Every sale of a stock, fund, or bond can produce a capital gain or loss, and whether you held the investment more than a year decides the rate you pay on it. Dividends and interest are taxed each year even when you reinvest them, and qualified dividends are taxed more favorably than ordinary ones. The broker reports all of this on a 1099, but the cost basis it shows is often incomplete, and none of this income has tax withheld the way wages do, so a strong year in the market can arrive with a bill attached. Reporting it accurately is where the difference between overpaying and paying what you actually owe shows up.
Our office is at 12305 Gold Street in West Omaha. Some clients with brokerage accounts choose us because they know the price before we begin and deal directly with one credentialed professional throughout the process, not a seasonal tax preparer. Your return is prepared by a CFP® professional, CFA® charterholder, and Enrolled Agent. We respond promptly, even during tax season. Once your return is complete, you receive a recorded video that walks you through every number and what it means, so you understand what is being filed and why, and you are not required to pay until your return is ready to be filed.
Ready to Get Started
Choose the way that works best for you.
Some Situations That Might Apply to You If You Have a Brokerage Account
You sold investments this year
Any time you sell a stock, fund, or bond in a taxable account, you have a capital gain or loss to report, and the holding period drives the rate. Investments held more than a year are taxed at lower long-term rates, while those sold within a year are taxed as ordinary income, which can be a meaningful difference on the same dollar of gain. Gains and losses across your accounts net against each other, so a loss in one position can offset a gain in another. Your broker reports the sales on a 1099-B, and getting the holding periods and the netting right is what determines the actual tax on a year of activity.
You have dividends and interest across your accounts
Dividends and interest are taxed every year, whether you spend them or reinvest them automatically. The distinction that changes your bill is between qualified dividends, taxed at the lower capital-gains rates, and ordinary dividends, taxed at your regular rate, and the 1099-DIV separates the two. Interest has its own wrinkles: some is fully taxable, some from municipal bonds is exempt from federal tax, and international funds often pay foreign taxes that can become a credit on your return. Sorting the categories correctly keeps you from overstating income and losing credits you are owed.
Your gains were large enough to bring extra taxes
A strong year of gains can reach beyond ordinary capital-gains tax. Above certain income levels, an additional tax applies specifically to investment income, including your gains, dividends, and interest, and a large realized gain can push part of your income into a higher capital-gains bracket. Because none of this income is withheld, it can also create a requirement to pay quarterly estimates or face an underpayment penalty. Planning the timing of sales, and knowing where your income sits relative to these thresholds, can keep a good year in the market from turning into an outsized tax.
We also help with related situations, including retirement income, selling a home, and quarterly estimated taxes. Or browse every income tax situation we help with.
Prefer to Learn
More First
Take a quick tour of how we work and what makes us different.
Why Choose MTS