Line 4 on the 1099-B is used for reporting federal income tax withheld on sales. If there has been no withholding, this line will not be relevant to your 1099-B.

This line indicates whether a corporate action that occurred in the account allows for a gain to be recognized but prohibits the investor from recognizing a loss.

Covered tax lots will have “COVERED tax lots” in line 5 and “Basis is reported to the IRS” in line 3. Noncovered tax lots will have “NONCOVERED tax lots” in line 5 and “Basis NOT reported to the IRS” in line 3.

TD Ameritrade breaks the bond premium down to four categories to give greater transparency to the tax payer. This information may be useful for you and your tax advisor. However, brokers only report the total bond premium for covered lots found on line 11.

The information that is being reported to the IRS on the Consolidated 1099 will have a line number next to the heading. If there is no line number next to the heading the information is being provided for informational purposes only.

A number 1 next to the total would indicate when an amount is for non-U.S. Treasury instruments. A number 8 next to the total would indicate when an amount is for a U.S. Treasury instrument.

Line 1f represents the code which corresponds with the adjustment amount reported in line 1g. These codes are W for wash sale loss disallowed, D for market discount, and C for collectible.

Among other things, dividend payments paid by corporations, mutual funds, and Real Estate Investment Trusts (REITs) made to you during the current calendar year may be reclassified in the following January, which leads to a difference in figures. The Consolidated 1099 is the authoritative document for tax reporting purposes to the IRS.

If you believe you should not have received a 1099 form because you are a non-resident alien for tax purposes, please contact our administrative team; Melinda can be reached at 800.871.1219 Ext. 1 or melinda@scarletoakfs.com,

to report the error. Any supporting documentation that you may have will be helpful to us. We will make every effort to research the matter quickly and issue a corrected Consolidated 1099 if needed.

If you have received all your tax form documents, including those from other institutions, and you do not detect any errors, you should be able to file your tax return. *However, be advised that certain investment instruments, such as mutual funds and Real Estate Investment Trusts (REITs), may reallocate payments (e.g., from long-term capital gains to short-term capital gains) after the original 1099 has been issued. This may result in a Corrected 1099 being issued.

*Scarlet Oak Financial Services does not provide tax advice. It is suggested that you seek the advice of a tax planning professional concerning your personal circumstances.

• 1099-R Distributions from retirement plan accounts
• 1099-Q Distributions from Coverdell ESA (Education Savings Accounts)
• 1042-S Payments subject to withholding, such as interest, dividends, royalties, pensions, and annuities for non-resident aliens
• 2439 Undistributed long-term capital gains
• 5498 Individual contributions and rollover contributions to all IRAs (including SIMPLE and SEP IRAs), employer contributions, and rollovers on SIMPLE IRAs
• 5498-ESA Contributions and rollover contributions made for you for the prior tax year for Coverdell ESAs (Education Savings Accounts). For more information about Coverdell ESAs, see IRS Pub 970, Tax Benefits for Education
• K-1 Partner’s Share of Income. Credits and Deductions reported directly by the partnership

Note: If you are eligible to receive one or more of these forms, they will be provided in separate mailings.

Brokers must report whether any gain or loss from covered transactions is short-term, long-term, or ordinary. However, the 1099-B does not include a section for ordinary income, so TD Ameritrade has listed it in the “additional information” column.

Index options information is provided in the 1099-B section, under Regulated Futures Contracts. Cost basis reporting is now required for options on or after January 1, 2016. Cost Basis Information for covered option sales is reported on the 2022 1099-B.

Please contact our administrative team; Melinda can be reached at 800.871.1219 Ext. 1 or melinda@scarletoakfs.com.

Any supporting documentation that you may have will be helpful to us. We will make every effort to research the matter quickly and issue a corrected Consolidated 1099, if needed.

Download a guide below.

Shareholders of tax exempt or government money markets will receive an “Important State Tax Information” brochure in February 2023. Please note: the TD Asset Management USA Funds, Inc. (TDAM) Municipal Portfolio is federally tax-exempt, and will not be included on your 1099.

TD Ameritrade and TD Asset Management, Inc. are affiliated through their parent companies.

Yes. TD Ameritrade participates in the Combined Federal State Program with the IRS. The IRS shares the 1099 information with participating states. However, some states require us to provide additional information such as tax exempt interest, which is not reported on the Consolidated 1099. For more specific information regarding state taxes and specific tax reporting requirements, contact your state’s tax authority.

Dividends subject to the capital gains rates, known as “Qualified Dividends,” will be reported separately on Form 1099-DIV, Box 1b. However, although the dividend paid was classified as “Qualified,” you must determine if the dividend qualifies for the lower capital gains tax rate based on the time period which you held the security.

In general, for common stock, you must have held the stock for a period greater than 60 days during a 121-day period beginning 60 days before the ex-dividend date. For more information regarding your holding period, please consult with your tax advisor.*

*Scarlet Oak Financial Services does not provide tax advice. It is suggested that you seek the advice of a tax planning professional concerning your personal circumstances.

Generally, yes. However, if you received income from a TD Bank USA, N.A. MMDA cash vehicle, and/or TD Bank USA FDIC Insured Deposit Account, it will be reported on Form 1099-INT rather than form 1099-DIV.

TD Ameritrade and TD Bank USA, N.A. are affiliated through their parent companies.

Most dividends are reported by payable date. However, the IRS allows certain securities such as mutual funds and Real Estate Investment Trusts (REITs) to declare a dividend in October, November, or December with a payable date in January of the following year, these are called Spillover Dividends and are reportable in the tax year the dividend was declared.

However, if you received a dividend from a mutual fund or REIT in January with a declaration date in October, November, or December of the previous year, that amount will appear on your 1099-DIV form for the previous year, not the current year.

There are various scenarios for which you may have received a dividend charge to your account. For example, if you maintained a short position in your account and the company issued a dividend, this would result in a dividend charge.

Your monthly statement may be used as proof that a dividend charge has occurred. You may be able to offset your dividend charges with dividend payments received on your tax return. Dividend charges are listed in the Supplemental Summary of your Consolidated Forms 1099 for your convenience. Please consult with your tax advisor regarding your specific situation.

Dividend payments paid by corporations, mutual funds, and Real Estate Investment Trusts (REITs) made to you during the 2022 calendar year may be reclassified. Some or all of your dividend distributions may have been reclassified as ROC or Capital Gains by the respective corporations or mutual fund company.

If you suspect that some of your dividends qualify as ROC or Capital Gains and your 1099 is incorrect, please contact our administrative team; Melinda can be reached at 800.871.1219 Ext. 1 or melinda@scarletoakfs.com to determine whether a Corrected 1099 should be mailed to you.

We have reported the gross dividend and separately listed the foreign tax withheld. The gross amount (the net amount plus the tax withheld at source) is reported in Box 1a of the 1099-DIV form (“Total Ordinary Dividends”), and the foreign tax withheld is reported in Box 6 (“Foreign Tax Paid”). The amount in Box 6 may be eligible for a tax credit or an itemized deduction.

As a result of the Jobs and Growth Tax Relief Reconciliation Act of 2003, the IRS code prohibits the paying of dividends on loaned shares, but instead permits substitute payments of cash for dividends. These payments will appear on Form 1099-MISC, Box 8, of your Consolidated Form 1099 instead of your 1099-DIV form, and are fully taxable at your ordinary income rate.

Because you received a substitute payment in lieu of a dividend—rather than a qualified dividend that may have certain tax benefits—TD Ameritrade provided a refund accommodation, which is reflected as a “Substitute Payment-Gross Up” on your monthly brokerage account statement. The refund accommodation is intended to compensate those clients who were disadvantaged because they did not receive a qualified dividend eligible for the lower tax rate.

Note: The refund accommodation will appear in Box 3 (“Other Income”) of Form 1099-MISC, and is fully taxable at your ordinary income rate. For a more detailed explanation of payments in lieu of dividends and refund accommodations, please contact your tax advisor.

The regulations do not alter the income and expense impact for you as the underlying taxpayer. However, they do require TD Ameritrade to report information supplied by the issuer for inclusion on your Consolidated 1099 Statements. This information is with respect to gross income and expenses and other data necessary to compute adjustments to income.

Tax packets are available to holders of non-mortgage-backed WHFIT securities once this information has been provided to TD Ameritrade by the issuer(s). Information pertaining to where a tax booklet can be retrieved and printed online is displayed for those holders in the 2022 End Notes Section of the Consolidated 1099.

The information source that supplies this data to TD Ameritrade is not required to furnish it until March 15, 2022. Due to the timing involved, you may receive a corrected Consolidated 1099 Statement.

If you took a distribution from your IRA in 2022 for coronavirus-related reasons, it appears on your 1099-R as a premature distribution or as a normal distribution depending on your age. Similarly, if you took a required minimum distribution and then returned it into your IRA, it appears on your 1099-R as a normal distribution.

If the coronavirus-related distribution was repaid or if the distribution was returned into your IRA, that repayment will be reported on your 2021 Form 5498. IRA owners can make contributions for 2022 through the tax deadline of April 15, 2023. Therefore, the 5498 forms are sent to you and the IRS in May.

The IRS requires we report the distribution and the repayment. Please note, you may be entitled to a special tax treatment of COVID-related distributions using IRS Form 8915-E. Consult your licensed tax advisor for mor information.

Learn More:

FAQs on the 2020 & 2021 RMDs and the 2020 CRD

Note: This content was provided by our affiliate, Charles Schwab & Co. Clicking this link will take you to a website owned and maintained by Charles Schwab, parent company of TD Ameritrade.

Charles Schwab & Co., Inc. (Schwab) member SIPC is a separate but affiliated subsidiary of The Charles Schwab Corporation.

Schedule K-1 (IRS Form 1065) is a tax document issued for a partnership’s investors, reporting each partner’s share of the partnership’s earnings, losses, deductions, and credits.

Form 990-T is used to report income generated in a tax-deferred account to the Internal Revenue Service (IRS). Form 990-T must be filed if the total positive amounts of Ordinary Gains, Capital Gains Subject to UBTI, and Line 20-V on all Schedule K-1s combined exceeds $1,000 in a tax-deferred account. The capital gains portion is also subject to a debt ratio calculation (see below) that is supplied by the partnership but may not be included with the K1.

TD Ameritrade examines your Schedule K-1s to determine whether a Form 990-T is required, and files the form for you.

Unrelated Business Taxable Income (UBTI) is income regularly generated by a tax-exempt entity through taxable activities. This income is not related to the main function of the entity but is needed to generate a small portion of income. UBTI is reported on Schedule K-1. When the combined UBTI from all of an investor’s K-1s exceeds a total of $1,000 in a tax-deferred account, a Form 990-T must be filed and there may be a current tax liability (the investor may owe tax) despite the account’s tax-deferred status. (See below for payment information.)

The debt ratio represents a partnership’s interest in a property financed through debt. Debt ratio calculation is applied to capital gains, so only a portion of the capital gain/loss is attributable to UBTI. For example, with a capital gain of $100, if the debt ratio is 50%, only $50 of the $100 is attributable to UBTI for tax purposes.

For alternative investments (AIs), the K-1 should be provided by the partnership directly. If the partnership sends the AI K-1 directly to TD Ameritrade, we will forward a copy to the current address listed on your account. For publicly traded partnerships (PTPs), you can generally find this information on the partnership’s website or from its vendor. Two common vendors that partnerships use to generate and issue the K1 forms are Tax Package Support and Partner Data Link.

• Tax Package Support: taxpackagesupport.com
• Partner Data Link: partnerdatalink.com

Note: Clicking either of these links will take you to an independent website not affiliated with Scarlet Oak Financial Services.

Scarlet Oak Financial Services is not responsible for the content of such websites.

You will need to register and log in with your name and tax identification number, and your current share quantity, in order to view this form online.

If you held shares of a partnership in your account at any time during the tax year and you have not yet received a K-1 form, you will need to contact the partnership directly to see why the form wasn’t sent to you. Partnerships typically have their K-1s available before the federal tax-filing deadline, but this can vary depending on a particular partnership’s fiscal year end. If the partnership does send the AI K-1 directly to TD Ameritrade, we will forward a copy to the current address listed on your account.

It’s essential that we receive all applicable K-1s so we can determine your tax reporting and any possible tax liability. Please send any K-1s you receive to the TD Ameritrade Tax Services Department as soon as possible. You can fax or mail us a copy of your K-1(s), or scan your K-1(s) and attach it to a message you send us through your secure Message Center (log in to your account and go to Client Services > Message Center).

• Mail: TD Ameritrade, Attn: Tax Operations, 200 South 108th Avenue, Omaha NE 68154-2654
• Fax: 866-468-6268

As custodian of your account, TD Ameritrade will prepare and make the payment to the IRS (through the Electronic Federal Tax Payment System [EFTPS], as IRS rules require) from your Individual Retirement Account (IRA) that held the partnership shares for the year. If payment is required, we will forward a completed 990-T form to you.

• If the funds are not available in your account, you can sell assets or make a contribution by the payment date. That date will be listed in the cover letter you’ll receive with your Form 990-T.
• We’ll let you know if there aren’t enough funds in your account on the payment date to pay your tax liabilities. You will need to notify TD Ameritrade once funds are available in order to coordinate payment to the IRS. (See below for information about possible penalties and interest.)
• TD Ameritrade will not sell securities to make the 990-T payment unless you tell us to do so.
• TD Ameritrade will not make partial payments. We will still file the form by the deadline but will not make a payment to the IRS unless there are enough funds in the account to pay the full amount.
• The payment is a Non-Reportable transaction and will not be reported on a Form 1099-R.

Under IRS regulations, TD Ameritrade, as custodian of your IRA, is responsible for submitting the payment from your account on your behalf. TD Ameritrade’s name and address are used on the filing as well as the payment. Ex: TD Ameritrade Clearing Custodian Inc. FBO [Your Name].

No, the payment is not considered a distribution from your IRA. But if you deposit money to cover this payment, it would be considered a contribution to the IRA.

TD Ameritrade will provide you with a copy of the completed Form 990-T that we are filing, with a window of time for you to review it. If you feel there is a discrepancy or error, please let us know by writing to our Tax Services department through your secure Message Center (login to your account at www.advisorclient.com and go to Client Services > Message Center). Please include the details, and any evidence that the reporting is incorrect. We’ll review this information and make any corrections that are needed.

Yes, we will attempt to look back at previous years to identify negative UBTI (Net Operating Loss, or NOL), if the information is available, in our calculation of current 990-T tax liability. Negative UBTI is not used in determining filing requirements (whether a form should be filed), only in determining whether there is tax liability.

Yes. For determining a filing requirement (whether a 990-T must be filed), only the positive amounts are included in the calculation of gross UBTI. So any negative 20-V or capital loss amounts would not be netted against the positives. However, for tax liabilities (calculating whether you owe tax, and the amount owed), negative amounts are considered as well. These may offset the positives to the point where you owe no tax. TD Ameritrade will send you a 990-T showing zero tax due if this situation applies to you.

IRS instructions for Form 990-T say that “an IRA Trust never uses a Social Security Number or the trustee’s EIN.” An Employee Identification Number (EIN) must be assigned to the IRA before a filing can be made. This number separates the IRA from your own Social Security Number, which is used in your individual tax return, and will help the IRS separate your individual tax filings from the IRA’s tax filings more easily. TD Ameritrade will request an EIN from the IRS on your behalf.

TD Ameritrade will file an IRS Form 8868 to extend your filing deadline for the 990-T form. This will change the deadline from April 15 to October 15 of each tax year. We plan on filing with the IRS in September/October. Please be aware, though, that extending the time to file does not extend the tax payment deadline, and you may be liable for penalties and interest if a payment is late.

You will need to notify TD Ameritrade once funds are available in order to coordinate payment to the IRS.

Where can I learn more about the IRS regulations that govern this? The IRS has provided additional guidance/clarification on how 990-T forms are to be interpreted and filed. The IRS publications that apply to K-1s, UBTI, 990-T, etc. can be accessed at www.IRS.gov:

• IRS Publication 598
• IRS Publication 541

TD Ameritrade and Scarlet Oak Financial Services does not provide tax advice. Clients should seek the advice of a tax planning professional with regard to their personal circumstances.