How do I report stock sales on my 2025 return?

Updated for tax year 2025 (filed in 2026) · IRS-sourced

For tax year 2025, you generally report stock sales on your federal return using Form 8949 and Schedule D (Form 1040). You’ll usually start with the details shown on Form 1099-B, including proceeds, cost basis, whether basis was reported to the IRS, and whether the sale was short-term or long-term.

Start with Form 1099-B and classify each sale

Most taxpayers use Form 1099-B from their broker to report each 2025 stock sale. That form usually shows the date sold, sales proceeds, cost or other basis, whether basis was reported to the IRS, and whether the sale is short-term or long-term.

Your first job is to sort each sale into the correct category. A stock sale is generally short-term if you held the shares for 1 year or less, and long-term if you held them for more than 1 year. Short-term sales go in Part I of Form 8949, and long-term sales go in Part II.

The IRS instructions also allow some sales to be reported directly on Schedule D instead of Form 8949. That shortcut is generally available when the sale was reported on Form 1099-B, you aren’t making adjustments, you aren’t using special deferral reporting like a Qualified Opportunity Fund election, and the basis information fits the IRS reporting rules.

Enter proceeds, basis, and any adjustments

On Form 8949, you list the sales proceeds and your cost or other basis for each stock sale, then show any required adjustment. The IRS examples specifically discuss using the proceeds amount from box 1d of Form 1099-B and the cost or other basis from box 1e.

If the basis shown by your broker is correct and no adjustment is needed, your reporting is simpler. But if something changes the gain or loss amount, you generally use Form 8949 to show that adjustment. Common reasons include basis corrections, wash sale adjustments, or other tax-law differences affecting the sale.

After that, you total the short-term sales and long-term sales. The Schedule D instructions say you transfer totals from Form 8949 to Schedule D by the appropriate reporting categories, then combine gains and losses to figure your net capital gain or net capital loss.

Move totals to Schedule D and net everything

Schedule D is where you combine all your capital gains and losses for 2025. You first total short-term items, then total long-term items, and then net those amounts to determine your overall capital gain or loss for the year.

The IRS instructions explain that short-term gains and losses are combined on Schedule D to reach a net short-term amount, and long-term gains and losses are combined to reach a net long-term amount. Those two net figures are then used to figure your overall capital gain or loss.

If you have an unused capital loss carryover from an earlier year, the Schedule D instructions say to enter it and attach a statement showing how you computed the carryover. If both your net short-term and long-term amounts are gains, the capital gain tax rate rules may apply.

Watch for AMT and special basis situations

Some stock sales have different results for the alternative minimum tax, especially shares acquired through incentive stock options (ISOs). The 2025 Form 6251 instructions explain that your AMT basis can be different from your regular tax basis, which can change the gain or loss reported for AMT purposes.

The IRS gives an ISO example where stock had one basis for regular tax and a different basis for AMT after an earlier-year adjustment. If that happens, you may need AMT versions of Form 8949 or Schedule D workpapers when a transaction reported on Form 8949 or Schedule D is different for AMT.

For many taxpayers, this issue never comes up. But if you exercised ISOs in an earlier year or had another AMT basis adjustment, you should not rely only on the broker statement when reporting the sale.

Frequently Asked Questions

Do I always have to file Form 8949 for stock sales?

No. IRS instructions for lines 1a and 8a say some transactions can go directly on Schedule D if they were reported on Form 1099-B, you don’t need to make adjustments, and other listed conditions are met. If you do need an adjustment, Form 8949 is generally required.

Where do I get the numbers to report?

Usually from Form 1099-B. The IRS examples refer to proceeds in box 1d and cost or other basis in box 1e of Form 1099-B, along with whether basis was reported to the IRS.

How do I know whether a sale is short-term or long-term?

IRS Schedule D instructions say a sale held for 1 year or less is short-term and goes in Part I, while a sale held for more than 1 year is long-term and goes in Part II.

What happens after I fill out Form 8949?

You transfer the totals to Schedule D by the proper category, then combine short-term and long-term gains and losses. The Schedule D instructions explain that this process determines your net capital gain or net capital loss.

Can I use a capital loss carryover on my 2025 return?

Yes. The Schedule D instructions say to enter any unused capital loss carryover and attach a statement showing how the carryover was computed.

What if my AMT basis is different from my regular tax basis?

The 2025 Form 6251 instructions say a transaction may be different for AMT because of a different basis, including from an ISO adjustment or a different AMT capital loss carryover. In that case, you may need AMT Form 8949 or AMT Schedule D workpapers.