Tax Center: General Frequently Asked Tax QuestionsTaxCenter:GeneralFrequentlyAskedTaxQuestions

1099-DIV Tax Forms

Why would I receive a Form 1099-Div if my dividend amount was less than $10?

Generally, you will not receive Form 1099-DIV if your distributions are less than $10. However, because a portion of the total dividend was reclassified as a non-taxable distribution (return of capital), we are required to report the distribution even though it was less than $10. The amount that is reclassified as a non-taxable distribution is reported in Box 3 of Form 1099-DIV.

Why are the distribution amounts on my Form 1099-Div different from my year end statement?

This is most likely because your fund reclassified a portion of its dividend, short-term capital gain, or long-term capital gain distributions. When a reclassification occurs, the total distributions remain the same, but the breakdown of the distributions changes. As a result, the distributions reported on your tax form will not match the amount on your year-end statement. You should use the amount(s) on your tax form to file your taxes.

What does the distribution code on my Form 1099-R mean?

The distribution code indicated on the form identifies the type of distribution. For example, a code 7 indicates a normal distribution, which is most often used for distributions after the owner reaches age 59½. A full description of all distribution codes is listed on the back of the form you receive.

Individual Retirement Account

I received a Form 1099-DIV for my non-IRA (Individual Retirement Account) investments, but not for my IRA.  Why is that?

Form 1099-DIV is used to report dividends, capital gains, nontaxable distributions, tax-exempt interest, and specified private activity bond interest (or Alternative Minimum Tax) paid on non-retirement accounts. Since capital gains and dividends paid on IRA accounts are tax-deferred, they do not generate tax reporting. A Form 1099-R will be mailed to you only when you receive a cash distribution from your IRA(s).

What is the deadline to take the Required Minimum Distributions (RMD) from my IRA?

You must take your first required minimum distribution (RMD) by April 1 of the calendar year following the year when you attain age 73. However, in each subsequent year, you must take that year's minimum distribution by December 31. If you choose to wait until April 1 for your first distribution, you will be required to take two minimum distributions for that particular year. It is important to take the distributions on time because, in addition to full tax liability, the Internal Revenue Service (IRS) will impose a penalty of 25% on any required distribution amount that is not taken. The excise tax on failure to distribute the correct RMD is further reduced from 25% to 10% if it is corrected in a timely manner in accordance with SECURE Act 2.0.  Note: The excise tax is in addition to any ordinary income taxes that may otherwise apply.

What is the deadline for IRA contributions, and what is the IRA contribution amount?

You can make a contribution for the prior year until the tax return due date. For 2022 returns, that date is April 18, 2023 (or the later applicable due date of your federal income tax return) without extension. The contribution amount is $6,000 for the 2022 tax year and  $6,500 for the 2023 tax year for those under age 50. Those who are age 50 and older can contribute an additional $1,000 for each tax year as a catch-up contribution.

You must inform us if you make a contribution from January 1 through April 18 (or the tax return due date if later) and want it applied to the prior year.

When will I receive a tax form to report my IRA contribution?

A Form 5498 will be mailed by May 31 if you make a contribution to a traditional IRA, Roth IRA, or Simplified Employee Pension (SEP) plan.

Coverdell Education Savings Account

What is the deadline for making contributions to a Coverdell Education Savings Account and what is the contribution amount?

You can make a contribution for the prior year until the tax return due date. For 2022 returns, that date is April 18, 2023 (or the later applicable due date of your federal income tax return) without extension. The contribution limit is $2,000 for the 2022 and 2023 tax years.

You must inform us if you make a contribution from January 1 through April 18 (or the tax return due date if later) and want it applied to the prior year.