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Alabama Form Instructions 8949: What You Should Know

To report that taxes are withheld on the sale, first select the option that is applicable to your sales. Then simply enter the total sales amount (e.g., 10 million). Do not calculate the tax withheld. See Example 1 below. Use Form 8949. Schedule D, line 5, entry for “Sales and Other Dispositions.” Enter this amount on Form 8949. Schedule D, line 9, entry for “Interest Deduction.” Enter this amount on Form 8949 and on Form 1040. To report that taxes are withheld and to calculate the interest deduction, first select the option that is applicable to your sales. Then simply enter the total sales amount (e.g., 10 million). Do not calculate the tax withheld.

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