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
Consolidated 1099
A Consolidated 1099 contains information typically reported on tax forms 1099-B, 1099-DIV, 1099-INT and 1099-MISC, which are used to report different events within your taxable brokerage accounts.
This statement may be generated for any of the reasons below:
1099-B | This form will report gains or losses from sales and corporate actions that occurred in your account during the previous calendar year. Sales with proceeds of at least $0.01 are required to be reported. |
1099-DIV | If you received more than $10 in dividends this year, they will appear in this section. Received dividends of less than $10 are not required to be reported unless there is tax withheld. 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-INT | If you received at least $10 in interest income in your High Yield Cash Account, amounts will be reported in this section. |
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. |
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.
You will receive Form 5498 if you made a contribution or completed a rollover into an M1 IRA.
Form 5498 will be available by May 31. Because the deadline for contributions is generally April 15th, this form is generated after the tax filing deadline. You don’t need to wait to receive form 5498 to file your tax return.
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 High-Yield Savings Account tax documents
Tax Form 1099-INT
Form 1099-INT is used to report interest. You will receive a 1099-INT if your M1 High-Yield Savings Account has earned more than $10 interest. These forms will be available 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.
M1 High-Yield Cash Account tax documents
If you earned at least $10 interest in your High-yield Cash Account, income will be reported in the 1099-INT section of the consolidated 1099 (above). Income below $10 is not required to be reported.
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 Clearing Migration and Consolidated 1099s
During 2023, M1 converted clearing in-house for most taxable accounts. For 2023, you may have received multiple consolidated 1099s from our former clearing partner, Apex, and from M1. For tax years 2024 and later, most taxable accounts will receive a Consolidated 1099 only from M1.
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.
This content was generated using artificial intelligence and is intended for informational and educational purposes only. While reasonable efforts are made to ensure accuracy, AI-generated outputs may omit key context; and should not be construed as financial, investment, legal, or tax advice. Users should independently verify all information and consult a qualified professional before making any financial decisions.
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