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February 10, 2025
Question

I had a small gain in my Vanguard investment, but I didn't change where they are invested or make any withdraw. Why am I getting hit with capital gains tax?

  • February 10, 2025
  • 1 reply
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In previous years I was not hit with a capital gain.

    1 reply

    SharonD007
    February 10, 2025

    If you didn't sell stock, it may be coming from dividends. Did you receive a Form 1099-DIV?  Do you have mutual funds?

    Mutual funds distribute dividends and capital gains over the year. They are paid to you or  they are reinvested, so even if haven’t sold any stock, you have to report the gain on your tax return.

     

    Review the IRS  FAQ Reporting capital gains on Mutual Funds for more information.

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