The Internal Revenue Service has started accepting tax returns since the last week of January. You might not have started filing your return due to the lack of necessary tax forms. However, your excuses will not be applicable in the following weeks since the investment forms are already sent out to the taxpayers.
According to USA Today, the deadline for financial firms to send out form 1099 was on February 15. If you used such firms when buying or selling stocks or other trading services besides cryptocurrencies, you should expect to receive either or both forms 1099-B and 1099-DIV.
Also Read: IRS W4 Form 101: How many allowances should you claim?
The form 1099-B is a document indicating the proceeds from sales of stocks or similar commodities, regardless if you sold them at a gain or loss. This form is the basis for Schedule D, which will be the basis for calculating capital gains on the taxes you may owe.
On the other hand, form 1099-DIV is a document for any dividends you received from owning a dividend-paying asset or the earnings from an investment. If you received more than $1,500 in interest or dividends, you might be required to fill out the Schedule B form.
Taxpayers should receive an email containing the form 1099 from their financial firms by February 15. (Photo: TaxBit)
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Documents from Robinhood
If you trade with Robinhood, you should have received an email by February 15. The email includes instructions on downloading your tax forms and other necessary steps. If you cannot log into your account, you should click account, then the menu or setting followed by tax center.
Like many other brokerage firms, Robinhood will provide you with a document ID for the forms, and you can import this information into tax software like TaxAct and TurboTax.
Read More: 2023 US Tax Season and Taxation: Understanding State vs Federal Income Taxes
