Each year, a significant number of individuals fill out Form Instructions 1040 (Schedule D) for reporting capital gains and losses on their federal income tax returns. The exact number of people who fill out this form annually can vary, but here are some relevant points:
1. Scale of Taxpayers: Millions of taxpayers across the United States fill out Form 1040 each year. According to the Internal Revenue Service (IRS), over 150 million individual income tax returns were filed for the year 2018 alone.
2. Capital Gains Reporting: Form 1040 (Schedule D) is used when taxpayers have capital gains or losses to report. Capital gains typically arise from selling assets such as stocks, real estate, or any other investments.
3. Investment Activity: The number of people filling out Schedule D may depend on the level of investment activity in a given year. When the stock market is performing well, more individuals may be engaged in investment activities and thus have capital gains or losses to report.
4. Economic Factors: Economic conditions and tax laws can also influence the number of people filling out Schedule D. During periods of economic growth, the number of taxpayers participating in investment-related activities may increase, thereby impacting the number of Schedule D filings.
5. Taxpayer Varying Needs: Not all taxpayers are required to file Schedule D. It is only applicable to those who have capital gains or losses during the year. Some individuals may have investments that do not trigger such reporting requirements.
Overall, while an exact number of Schedule D filings cannot be determined, it is safe to say that a substantial number of individuals fill out this form annually, indicating the prevalence of investment activities amongst taxpayers.