United States USA

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.

Please read important legal disclosures that apply to your relationship with Ustocktrade Securities, Inc.

Online trading has inherent risk due to system response, execution price, speed, liquidity, market data and access times that may vary due to market conditions, system performance, market volatility, size and type of order and other factors. An investor should understand these and additional risks before trading.

The information provided is not warranted as to completeness or accuracy and is subject to change without notice. The information provided should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation. The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, are not guaranteed for accuracy or completeness, do not reflect actual investment results and are not guarantees of future results. All investments involve risk, losses may exceed the principal invested, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. Consider the investment objectives, risks, charges, and expenses of a fund before investing. Contact us for a prospectus containing this information.

Investors should consider the investment objectives, risks, and charges and expenses of a mutual fund or Exchange Traded Fund ("ETF") carefully before investing. Before investing in any mutual fund or ETF, you should consider its investment objective, risks, charges and expenses. Contact us at support@ustocktrade.com for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully. ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses. Unlike mutual funds, ETF shares are bought and sold at market price, which may be higher or lower than their NAV, and are not individually redeemed from the fund. Investment returns will fluctuate and are subject to market volatility, so that an investor's shares, when redeemed or sold, may be worth more or less than their original cost. ETFs are subject to risks similar to those of stocks. Some specialized exchange-traded funds can be subject to additional market risks. Leveraged and inverse exchange traded products are not designed for buy and hold

investors or investors who do not intend to manage their investment on a daily basis. These products are for sophisticated investors who understand their risks (including the effect of daily compounding of leveraged investment results), and who intend to actively monitor and manage their investments on a daily basis.

Testimonials may not be representative of the experience of other customers and are no guarantee of future performance or success.

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Securities products and services offered to self-directed investors through Ustocktrade Securities, Inc. Member FINRA / SIPC. Ustocktrade, LLC and Ustocktrade Securities, Inc. are separate but affiliated companies.

Securities products are: Not FDIC insured • Not bank guaranteed • May lose value

FINRA BrokerCheck reports for Ustocktrade Securities are available at http://www.finra.org/brokercheck

You must be a U.S. resident to open a brokerage account. Other account features are available to non-US residents.

Ustocktrade Securities, Inc.
Member FINRA/SIPC
V.01 06/02/2017

© 2017 Ustocktrade. All rights reserved. U.S. Patent:US D761,294 S.

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