How to understand your 1099 Tax Forms

This article is designed to help you understand your 1099 Tax Forms. The information provided is for reference only and should not be used as tax advice. We strongly advise you speak with a tax professional regarding your tax forms.

1099 Dates

February 15 – the date we provided you with access to your tax forms

March 31 – the e-filing deadline for brokerages to file your tax forms with the IRS

April 30 – the e-filing deadline for brokerages granted a tax filing extension

Until we file your 1099 form with the IRS, your form can continue to be updated for name/address changes, cost/proceeds changes, corporate action changes, issuer changes and other reasons.

If your 1099 form has further corrections after we file it with the IRS, you may also receive a Corrected Form from us, where the Corrected box on page 1 will be checked.

1099-DIV

The 1099-DIV form reports the total dividends and other distributions you received during the year. You will only receive a form of your total dividend income is greater $10.

1099-B

The 1099-B form reports all proceeds from securities transactions, which are the sell trades in your account.

On the first page of your 1099-B form:

  • Box 1d Proceeds - refers to your cash proceeds for the sale of securities, or your total value of all sell trades
  • Box 1e Cost or other basis - refers to your cost or other basis of securities sold, or your total value of all buy trades plus any wash sale adjustments
  • Bog 1g Wash sale loss disallowed – refers to the amount of nondeductible loss in a wash sale transaction and is added to your cost basis
  • Box 2 Short term gain or loss – for the 2016 tax year, your gain or loss is short term for all trades
  • Box 3 Basis reported to IRS – all cost basis for your trades are reported by us to the IRS
  • Box 6 Reported to IRS: Gross proceeds – all gross proceeds for your trades are reported by us to the IRS

The rest of your 1099-B form will include this same breakdown for each transaction. The Gain/Loss field is included for each transaction for your reference but is not reported by us to the IRS.

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