The plain language tax guide for everyone who buys and sells stocks, mutual funds and stock options, from beginners to trading professionals. Our First Book Learn how to get the most from your stock options or other equity compensation. There are three main versions of Form 1040. Most people coming to this web site will use the regular Form 1040, because investing tends to produce the kind of income that requires that form. If you're unsure which form to use for your 2000 taxes, read on.
Some people worry that they'll pay more tax if they use the wrong form.
That's only true if you use a form that doesn't allow you to claim deductions or credits to which you're entitled. When in doubt, use Form 1040. If you qualify to use one of the other forms and you instead use Form 1040, you'll pay exactly the same tax. You're not required to use the easier forms, and they don't calculate the tax any differently. They're simply a convenience if you happen to qualify to use them.