Taxes
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      What tax forms will I receive for my investments?

      Forms like 1099s and 5498 report contributions, distributions, dividends, and gains.

      The tax forms you receive depend on your account type and activity. Here's a breakdown:

      Retirement Accounts

      • Form 5498 (IRA Contribution Information):

        • Reports contributions to Traditional IRAs, Roth IRAs, SEP IRAs, and SIMPLE IRAs.
        • Includes rollover contributions, Roth IRA conversions, and the account’s fair market value (FMV) as of December 31.
        • Crucial for verifying tax-deductible contributions and understanding your required minimum distributions (RMDs) for future years.
        • Not required for tax filing.

      • Form 1099-R (Retirement Distributions):

        • Reports distributions from retirement accounts, including Traditional IRAs, Roth IRAs, 401(k)s, pensions, and annuities.
        • Shows taxable and non-taxable portions of the distribution.
        • Also includes details on early withdrawal penalties or rollover transactions.

      Non-Retirement Accounts

      • Form 1099-DIV (Dividends and Distributions):

        • Reports dividends paid on investments and distributions from mutual funds or ETFs.
        • Dividends are classified as:
          • Qualified Dividends: Eligible for lower tax rates (capital gains rates).
          • Non-Qualified Dividends: Taxed at ordinary income rates.
        • May also include capital gain distributions from mutual funds or ETFs.

      • Form 1099-B (Proceeds from Broker and Barter Exchange Transactions):

        • Reports sales of securities, such as stocks, bonds, mutual funds, or ETFs.
        • Includes details like the sale price, cost basis, and date of acquisition and sale.
        • Used to calculate capital gains or losses for tax purposes.

      • Form 1099-INT (Interest Income):

        • Reports interest earned from savings accounts, CDs, or taxable bonds.
        • Includes interest earned on U.S. Treasury bonds, which may be exempt from state and local taxes.
        • Any early withdrawal penalties are also noted.

      Additional Notes

      • Compare each form to your account statements to ensure all data is accurate.
      • Missing or incorrect information should be reported to your financial institution promptly.
      • Keep copies of these forms for your records and provide them to your tax preparer.

      Disclaimer: Carbon Collective is not a tax advisor. Consult a tax professional for assistance with tax forms and filing.