|Form||Used to Report||Availability Date|
|1099-R / 1099-Q||Distributions from qualified retirement plans and educational savings accounts.||Wednesday, January 31, 2018|
|Combined 1099||A consolidated tax document containing forms 1099-B, 1099-DIV, 1099-INT and 1099-MISC.||Thursday, February 15, 2018|
|1042-S||Foreign Person's U.S. Source Income Subject to Withholding.||Thursday, March 15, 2018|
|5498-ESA||Contributions to qualified educational savings accounts.||Monday, April 30, 2018|
|5498||Contributions to qualified retirement plans.||Thursday, May 31, 2018|
If any date shown falls on a Saturday, Sunday, or holiday, the due date is the next business day.
In this section you’ll find general, tax-related information and terminology.
1042-S: A form sent annually to investors and the IRS to report amounts paid to international account holders. These are mailed in April.
1099 Forms: A series of annual forms sent to accountholders and the IRS to report various types of income. Accountholders may receive one or more of these depending on the transactions within their account over the tax year.
1099-B: Sent to all accountholders who sold positions that resulted in a gain or loss. Depending on the information Firstrade has on file, the form may disclose whether the gain/loss was short or long term, what the cost basis was and whether the loss is disallowed due to wash sale rules.
1099-INT: Issued to all accountholders who earned at least $10 in interest income during the prior year.
1099-DIV: Sent to all shareholders who were paid cash dividends during the tax year.
1099-R: Sent to accountholders taking a distribution from a retirement account, including premature distributions or required minimum distributions. This form is also issued for Roth conversions and excess contributions.
Dividends: A portion of a company’s earnings that is distributed to shareholders in cash or additional shares.
Holding period: The amount of time you have owned a position. The holding period helps to determine what your tax liability is for certain transactions.
Interest income: Income from interest-bearing securities, such as certain bonds, CDs, bank savings accounts, and treasuries.
Non-qualified dividends: Dividends that are not subject to preferential tax treatment and are taxed at the shareholder’s ordinary income tax rate. This can include dividends from REITs, MLPs, dividends on employee stock options and dividends from tax-exempt companies.
Ordinary (qualified) dividends: Dividends that are subject to preferential tax treatment when holding period requirements are met. These dividends are generally issued by for-profit, domestic corporations and certain qualified foreign companies. They qualify for a progressive 0 to 20 percent tax rate, depending on the ordinary income tax rate of the shareholder.
Realized gains/loss: Gains and losses that result from the final sale/closing of a position. These are the only gains and losses considered for tax purposes.
Schedule D: A tax form that investors report gains and losses on.
Tax lots: A group of shares purchased simultaneously in one transaction. Tax lots are used to determine your holding period.
Trade confirmations: Written statements that disclose the details of a transaction. These are issued whenever a trade is executed. Maintaining these confirmations is vital in calculating taxes.
Trade settlement: The date when a sold security must be delivered and the cash to purchase said security must be issued. Most securities settle in T+2, which is the trade date plus two business days. Some mutual funds and options have a one business-day settlement period.
Unrealized gains/loss: Also called paper gains/losses, these are increases or decreases in the value of an open position. They are considered unrealized because the investor still owns the position and, thus, hasn’t locked-in the movement by selling and closing the position.
Wash sales: The purchase of the same or substantially identical similar position within 30 days before or after the sale of one at a loss. Includes the purchase of a contract or option to buy the same/substantially identical security.