How to Report Capital Gain Distributions (continued)

The total of capital gain distributions can be reported directly on Form 1040 line 13, or 1040A, line 10 if Form 1099-DIV shows:

• Only capital gain distributions (box 2a)
  
  
• No amounts in boxes 2b, 2c, 2d, 3, 8 or 9

Taxpayers who file Form 4952, Investment Interest Expense Deduction, can also report capital gain distributions directly on Form 1040 or 1040A if the amount on line 4e of Form 4952 is zero.

Form 4952 is beyond the scope of VITA/TCE. Refer taxpayers who need to file Form 4952 to a professional tax preparer.