Knowing the ins and outs of tax documents can be tricky. This guide provides information about what documents M1 provides, which ones you can expect, and when they’ll be available.
M1 Invest Account tax documents
Tax Form Consolidated 1099
A Consolidated 1099 contains the information typically reported on tax forms 1099-B, 1099-DIV, and 1099-MISC, which are used to report different taxable events within your taxable brokerage accounts.
A Consolidated 1099 may be generated for any of the reasons below:
1099-B | This form will report gains or losses from sales that occurred in your account during the previous calendar year. |
1099-DIV | If you received more than $10.00 in dividends this year, they will appear in this section.Received dividends of less than $10.00 will not be reported.
Qualified dividends are reported on Form 1099-DIV in line 1b; this amount is also included in line 1a. However, not all dividends reported on this line may have met the holding period requirement. |
1099-MISC | Promotional or referral bonuses may be reported here if they exceed the IRS de minimus reporting threshold.
Additionally, cash payment in lieu of dividends will be reported, if applicable.M1 may loan out your fully-paid securities. and you are entitled to receive the amount of all dividends and distributions made on or in respect of the loaned securities.
However, these are classified differently than qualified dividends and are taxed as ordinary income instead of the preferential qualified dividend rate. |
M1 Clearing Migration and Consolidated 1099s
Most Consolidated 1099s will be available for viewing by February 29.
If one of your Investment Accounts was migrated from Apex Clearing to being cleared by M1, you will receive separate consolidated 1099s from both Apex Clearing and M1.
Apex is required to send tax documents covering the time your taxable Investment Account was cleared by them. You will receive an additional 1099 from M1 covering the time your account has been cleared by us.
You’ll receive a consolidated 1099 for each separate account cleared by Apex Clearing during the year and a single 1099 for all Individual Brokerage Accounts cleared by M1. If you have a Joint Brokerage Account, the primary accountholder will receive a 1099.
If your taxable Investment Account was never cleared by Apex Clearing, you will only receive a 1099 from M1.
Tax Form 1099-R
Form 1099-R is used to report distributions from a retirement account. These are the types of retirements accounts you can have at M1:
Traditional IRA
Roth IRA
SEP IRA
Beneficiary (inherited) traditional IRA
Beneficiary (inherited) Roth IRA
You will receive a 1099-R if you made a withdrawal from an M1 IRA during the previous calendar year, and it will be available for viewing by January 31.
Please note: Retirement accounts remain cleared by Apex Clearing. You will only receive tax documents generated by Apex Clearing for these account types.
Tax Form 5498
Form 5498 reports all contributions made into your retirement account for the previous tax year. These are the types of retirements accounts you can have at M1:
Traditional IRA
Roth IRA
SEP IRA
You will receive Form 5498 if you made a contribution or completed a rollover into an M1 IRA.
Form 5498 will be available for viewing by May 31. Since Form 5498 is generated after the tax filing deadline, Form 5498 is sent to the IRS on your behalf and is not required to file your taxes.
Please note: Retirement accounts remain cleared by Apex Clearing. You will only receive tax documents generated by Apex Clearing for these account types.
Puerto Rico 480.6A, 480.6B, and 480.6D tax documents
Residents of Puerto Rico and holders of Puerto Rico based securities may be subject to Puerto Rico tax information reporting. These documents differ from 1099s as they are not organized by income type. Instead, they focus on residency and tax withholding. There are four different tax documents that you may receive:
480.6A: covers gross proceeds and investment income that is not subject to
withholding.480.6B: covers investment income that has been subjected to Puerto Rico source withholding.
480.6C: covers investment income earned by non-residents of PR that has been subject to Puerto Rico withholding.
480.6D: covers exempt income and income subject to the Puerto Rico Alternate Basic Tax (ABT).
These documents will be available for viewing on February 28.
You may receive both a 1099 and one or more 480.6 documents. Your income report is not being duplicated. Your 1099 will be reported to the IRS while your 480.6 will be reported to Puerto Rico’s Departamento de Hacienda.
M1 Checking Account tax documents
Tax Form 1099-INT
While you may also receive a 1099-INT for a taxable brokerage account, the 1099-INT you receive for your checking account 1099-INT is to report interest earned as a result of M1’s APY.
You will receive a 1099-INT if your M1 Checking Account has earned more than $10.00 interest, and it will be available for viewing by January 31.
M1 High-Yield Savings Account tax documents
Tax Form 1099-INT
Form 1099-INT is used to report interest income received into an account. The 1099-INT you receive for your M1 High-Yield Savings Account is to report interest earned as a result of M1’s APY.
You will receive a 1099-INT if your M1 High-Yield Savings Account has earned more than $10.00 interest, and it will be available for viewing by January 31.
Tax Form 1099-MISC
Form 1099-MISC is used to report miscellaneous income.
Promotional Credits: There is a de minimis threshold of $600 by the IRS for promotional credits. If the bonus received exceeds $600, a tax document is required to be generated. However, if the amount is less than the threshold, it will not be listed on your 1099.
Finding your documents
Once your tax documents have been generated, they will be available for viewing and download in the documents tab of your settings. Make sure to select the checkbox next to “Tax forms.”
Additional IRA information
If you performed an IRA conversion or recharacterization during the previous calendar year, you will receive a Form 1099-R and/or a Form 5498 to report the fund movements from one account to another.
Please refer to the following articles for additional information on what tax documents to expect after an IRA conversion, recharacterization, or contribution year change.
More about IRA conversions.
More about IRA recharacterizations.
More about IRA contribution year changes.
M1 and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only. It is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.
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