Step 2. Investment Income

1. Add the amounts from Form 1040 or 1040-SR:

Line 2a _____ Line 2b + _____ Line 3b + _____ Line 7a* + _____ Investment Income = *If line 7a is a loss, enter -0-.

2. Is your investment income more than $11,950?

[ ] Yes.

[ ] No.

3. Are you filing Form 4797 (relating to sales of business property)?

[ ] Yes.

[ ] No.

4. Do any of the following apply for 2025?

You are filing Schedule E.

You are reporting income from the rental of personal property not used in a trade or business.

You are filing Form 8814 (relating to election to report child’s interest and dividends on your return).

You have income or loss from a passive activity.

[ ] Yes.

[ ] No.