Form 1099-DIV FAQs
Q: Why didn’t I receive a Form 1099-INT for my tax-exempt securities?
A: The information previously supplied on Form 1099-INT for tax-exempt (Box 8) and Alternative Minimum Tax (Box 9) is now being reported to the IRS on Form 1099-DIV (Boxes 10 and 11).
Q: Where is my Cost Basis Statement?
A: The data that used to be displayed on the Cost Basis Statement is now being reported in five sections on Form 1099-B.
Q: How are my IRA contributions being reported to the IRS?
A: If you are an IRA shareholder, Form 5498 will be mailed to you by the end of May 2014.
Q. If I am not subject to the maximum long-term capital gains rate of 20%, what rate would apply to my capital gain distributions?
A. Investors who are not in the 25% tax bracket or higher are subject to a maximum long-term gain rate of 0%. If you qualify (see IRS instructions) to enter your long-term capital gain distribution directly on Form 1040, Line 13, you must refer to the Qualified Dividends and Capital Gain Tax Worksheet included in the official 2013 IRS Form 1040 instructions to compute your tax.
Q. Why did I receive a Form 1099-DIV for my account?
A. Federal regulations require reporting taxable dividends and distributions of $10.00 or more except if earned in certain exempt accounts, such as retirement or IRA accounts. Tax-exempt dividend distributions paid in 2012 are also reported on Form 1099-DIV even though these distributions may be excludable from income.
Q. What if I did not receive a Form 1099-DIV for my account?
A. You should only receive a Form 1099-DIV if your taxable dividends and distributions were $10.00 or more. You must report all taxable dividends even if you don’t receive a Form 1099-DIV. If you have additional questions, please consult your tax advisor.
Q. Can I add all of the amounts on my Form 1099-DIV and report them as one total on my tax returns?
A. No. Form 1099-DIV contains individual lines of information for each fund account you held during 2013. Unless otherwise provided for in the tax return instructions, report each amount separately on your tax returns.
Q. How can I obtain information on the percentage of my fund dividends that was derived from interest income on U.S. government obligations? Is that amount exempt from state personal income tax?
A. If your fund invested in U.S. government obligations, percentage information is shown on your year-end Account Statement or will be included with your Form 1099-DIV. In most states, the portion of your dividends derived from U.S. government obligations will be exempt from state personal income tax. Please consult your tax advisor for the treatment of these dividends in your state.
Q. Why is there an amount shown in Box 6 ("Foreign Tax Paid") of my Form 1099-DIV and what does it represent?
A. Your fund has made investments in foreign securities, the income from which is subject to foreign tax withholding. This is your portion of those taxes, which you may take as an itemized deduction or tax credit on your federal personal income tax return. Further information is contained on an enclosure with your Form 1099-DIV.
The information set forth here is general in nature and does not constitute tax advice. Specific questions should be discussed with your tax advisor.