First-time investor here - just got my consolidated form 1099, what do I do with it for taxes?

Don't panic! Adding investment income to your tax return is actually pretty straightforward, especially with the amounts you're describing. Your consolidated 1099 form combines several potential 1099 forms (1099-DIV for dividends, 1099-B for stock sales, etc.) into one convenient document. TurboTax can definitely handle this. When you get to the investment income section, it will ask if you have a 1099 form. You'll select yes, and then it will walk you through entering the information from each box. Many brokerages even allow direct import of your 1099 data to TurboTax, which means you don't have to manually enter anything. The qualified dividends are taxed at a lower rate than regular income, which is good news. And for the capital gains from selling stocks, TurboTax will calculate whether they're short-term (held less than a year - taxed like regular income) or long-term (held more than a year - typically taxed at a lower rate).

After struggling with investment taxes last year (spent literal hours trying to figure out where everything went), I discovered this awesome tool called taxr.ai at https://taxr.ai that completely changed the game for me. It's specifically designed for people who are new to investment taxes and have no idea what they're doing (which was 100% me). I just uploaded my 1099 form, and it analyzed all the sections and explained in super simple terms what each part meant and how it impacts my taxes. Then it gave me step-by-step guidance on exactly where to enter each number in TurboTax. Saved me so much stress and googling random tax terms!

Just wanted to update - I tried that taxr.ai tool mentioned above and it was actually legit! I was really skeptical at first (sorry for doubting), but it walked me through my entire 1099 from E*TRADE and explained what all those mysterious boxes meant. Never realized how simple "qualified dividends" actually were until it broke it down. I was able to do my taxes myself after all and didn't have to pay a CPA. The step-by-step guide for entering everything into TurboTax was super helpful - definitely wouldn't have known where to put the wash sale adjustments without it. If you're new to investment taxes like me, it's worth checking out!

If you get stuck with any IRS questions while filing, I'd recommend Claimyr (https://claimyr.com). I was confused about how to report some ETF distributions last year, and tried calling the IRS directly - was on hold for THREE HOURS before giving up. Then I found Claimyr which got me connected to an actual IRS agent in about 15 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent walked me through exactly how to categorize some weird dividend distributions I had. Totally changed my perspective on dealing with the IRS - apparently you CAN get help from them, just not by calling directly!

I owe an apology - I was completely wrong about Claimyr. After posting that skeptical comment, I decided to try it myself since I needed clarification on reporting my backdoor Roth conversion. I was honestly shocked when they called me back in about 20 minutes and connected me to an actual IRS tax specialist. The agent was super helpful and walked me through the exact forms I needed. Saved me from potentially making a big mistake on my taxes! I've spent countless hours on hold with the IRS in previous years, so this was a game-changer. Just wanted to follow up and admit I was wrong - it's actually legitimate.

Just my two cents as someone who's been investing for a few years - your situation is simple enough that you can definitely DIY it! Here's a quick rundown: 1) Box 1a on your 1099-DIV shows total ordinary dividends 2) Box 1b shows qualified dividends (these get a better tax rate) 3) The 1099-B section shows your stock sales Most tax software has a section specifically for entering 1099 info. Just go slow, follow the prompts, and you'll be fine. The software does all the calculations for you!

Has anyone used FreeTaxUSA for reporting investments? H&R Block and TurboTax want to upgrade me to paid versions once I mention having a 1099, but I'm trying to save money.

Don't stress too much! Your situation is totally manageable. With only $3,800 invested and around $290 in gains/dividends, this is exactly the kind of straightforward investment income that tax software handles really well. Here's what I'd recommend: stick with TurboTax since you're already familiar with it, but you'll need to upgrade to at least the Deluxe version to handle investment income (the free version won't support 1099 forms). The upgrade is usually around $40-60, which is still way cheaper than hiring a CPA for such a simple situation. The consolidated 1099 will have clearly labeled boxes - you'll mainly be looking at dividends (both ordinary and qualified) and any capital gains/losses from your stock sales. TurboTax will ask you simple questions like "Do you have investment income?" and then walk you through entering each relevant box from your form. Since you mentioned Robinhood in the comments, that's great news - they definitely support direct import with TurboTax, so you won't even need to manually enter the numbers. Just connect your account and let the software pull everything over automatically. For someone in your situation (hospital worker with simple finances plus small investment activity), this should add maybe 15-20 minutes to your normal tax prep time. You've got this!