<p>So this is the tax form required along with 1040ez for simplified needs with FAFSA. I just found out my parents did some forex trading, and they lost money overall this year. Is it still possible to file for 1040a with this net loss in forex? I mean would they have to report a loss in forex trading at all? I'd understand if they had to report gains, but losses? (around $3000 in net losses)</p>
<p>Does anyone have experience in this area? </p>
<p>Also another question I had was whether Cal grant and UC grants use the same EFC obtained from FAFSA apps, mainly whether they apply the same ignoring of assets towards their calculations. </p>
<p>When you file taxes you generally file either a 1040, a 1040a or a 1040ez. To qualify for the simplified needs test you must be eligible to file a 1040a or a 1040ez - one or the other not both. (or qualify for certain needs based benefits). Generally speaking 1040a or 1040ez are the most simple returns where the filer does not have income over a certain amount, does not itemize deductions, has not sold stocks, has no taxable State tax refunds (my personal pet Peeve as we ran into that the 1st year we filed FAFSA - a few $s overpayment of State taxes in a prior year cost us a few hundred in financial aid) etc. I honestly don't have a clue about forex trading and which tax return would be required. But forex trading may be similar to trading stocks so may make you ineligible for the 1040 a and/or 1040ez. But i am guessing.</p>
<p>Maybe. If your stocks lost value but you still own them, then you lost money on paper only and it's not reported on your return. If the stocks lost money and you sold whatever was left, then you must file a schedule D and report at least the sale of the stock. The brokerage firm does not report the gain or loss to the IRS, only the sale. So to claim the gain or loss, you report the sale on schedule D and then tell the IRS what you paid for the stock, therefore reporting a gain or loss. So you see...............if you stold the stock you have to file a schedule D, otherwise, the IRS only sees the sale and it's all taxed.</p>
<p>And if you file a schedule D you can't file a simple form.</p>
<p>But Forex trading is not buying and selling stocks. So you'd have to see how it's reported to the IRS.</p>