General Tax Questions
When are tax forms mailed and do I receive one every year?
Most tax forms are mailed between January 31 and February 15 for the prior tax year. The type of account you have and the activity in your account will determine which tax form(s), if any, you will receive. A tax form will be generated if you made a transaction or if you received $10 or more in dividends and/or capital gain distributions in each fund.
How can I receive a duplicate of a tax form that was sent to me?
You can get your tax forms faster by signing up to receive your tax forms through our e-Delivery service. You can sign up for this feature online when you access your account at www.pgiminvestments.com/myaccess. Once online, select the "Mutual Funds" tab and then click on "E-Delivery Preferences" and complete your updates.
While online, you can also take advantage of e-Delivery for mutual fund statements, transaction confirmations, and shareholder reports. In addition, you can print a copy of your recent tax forms online.
You may also obtain a duplicate tax form by calling the Prudential Mutual Fund Service Center at (800) 225-1852.
Capital Gains Questions
What is a capital gain?
A capital gain occurs when a mutual fund manager sells a security in the portfolio that has increased in value. A capital gain is also realized when you sell a capital asset, such as a stock or bond, for more than what you paid.
What is a long-term capital gain?
It's a gain on an investment that has been held for more than one year. The maximum tax rate for a long-term capital gain is 20% plus an additional 3.8% Medicare tax for certain individuals.
What is a short-term capital gain?
It's a gain on an investment that has been held for one year or less. Short-term capital gains are taxed at the same rates as ordinary income and interest. Tax rates for short-term gains can range as high as 37% plus an additional 3.8% Medicare tax for certain individuals.
Cost Basis Reporting
The Internal Revenue Service (IRS) requires transfer agents, such as Prudential Mutual Fund Services LLC (PMFS), to report a shareholder's adjusted cost basis and gross proceeds for mutual fund shares acquired on or after January 1, 2012, that are redeemed in non-retirement accounts. The regulations also require PMFS to report whether a gain or loss is short-term (held one year or less) or long-term (held more than one year) for all purchases made on or after January 1, 2012 that are subsequently redeemed.
Note: The cost basis regulations do not affect retirement accounts, money market accounts, and shares acquired before January 1, 2012.
What is cost basis?
Cost basis is the original value of an asset for tax purposes (usually the gross purchase amount), adjusted for stock splits, reinvested dividends, and return of capital distributions. This value is used to determine the capital gain (or loss), which is the difference between the asset's cost basis and the gross proceeds when the asset is sold or exchanged.
Turbo Tax Info
Importing Tax Data into TurboTax®
If you use TurboTax to file your tax returns you may be able to import certain tax information directly from your PGIM Investments mutual fund account into TurboTax. Here’s how to use this feature.
What Information You Can Import
For non-retirement accounts, you may import Forms 1099-B and 1099-DIV. For retirement accounts, you may import your Form 1099-R.
Getting Started
The instructions linked in the document below will provide the steps to assist you with importing your mutual fund tax-related data into TurboTax. Prudential Mutual Fund Services LLC does not support the TurboTax software. For a list of common questions and answers, please visit TurboTax at https://turbotax.intuit.com and click on “Help” and then “Frequently Asked Questions (FAQ).”
2022 Capital Gains
To assist with your year-end tax and planning, download preliminary estimates for 2022 capital gains.
Corporate Actions
A return of capital is paid when a fund makes a distribution in excess of its current and accumulated earnings and profits. The return of capital distribution is a return of the shareholder’s original investment, is non-taxable, and reduces the shareholder’s cost basis in the fund shares. The amount of the return of capital distribution will be displayed in Box 3 of Form 1099-DIV.
A fund merger occurs when a fund transfers its assets and liabilities to another fund in exchange for shares of that fund having a value equal to the net assets transferred. The merger is subject to approval by the shareholders of the fund that is being acquired. Generally, a fund merger does not result in a taxable gain or loss to the acquired fund or its shareholders for federal income tax purposes.
These Notices report estimated amounts of each Fund's current distributions paid from net investment income, net realized capital gains, and return of capital based on each Fund's respective fiscal year end. The amounts and sources of distributions reported in these Notices are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to change based on tax regulations.
Further Resources to help you lodge your tax return
Supplemental Tax Information
We have compiled further information to help you prepare for your federal and state tax returns.
Mutual fund investing involves risk. Some mutual funds have more risk than others. The investment return and principal value will fluctuate and investor's shares when sold may be worth more or less than the original cost. Fixed income investments are subject to interest rate risk, and their value will decline as interest rates rise. Asset allocation and diversification do not assure a profit or protect against loss in declining markets. There is no guarantee a Fund's objectives will be achieved. The risks associated with each fund are explained more fully in each fund's respective prospectus. Your clients should consult with their attorney, accountant, and/or tax professional for advice concerning their particular situation.
Investment products are distributed by Prudential Investment Management Services LLC, a Prudential Financial company, member SIPC. Separately Managed Accounts are offered through our affiliates. Jennison Associates and PGIM, Inc. (PGIM) are registered investment advisors and Prudential Financial companies. PGIM Quantitative Solutions is the primary business name of PGIM Quantitative Solutions LLC, a wholly owned subsidiary of PGIM. PGIM Fixed Income and PGIM Real Estate, are units of PGIM. © 2023 Prudential Financial, Inc. and its related entities. Jennison Associates, Jennison, PGIM Real Estate, PGIM and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
Investment Products: Are not insured by the FDIC or any other federal government agency, may lose value, and are not a deposit of or guaranteed by any bank or any bank affiliate.
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