Reading a Consolidated 1099

If you’ve sold a security or received a reportable interest or dividend payment in a taxable account, you’re among the hundreds of thousands of M1 customers who will receive a Consolidated 1099.

Apex Clearing Consolidated 1099s notably combine Form 1099-DIV, Form 1099-INT, Form 1099-B, and Form 1099-MISC into one document, making it long and full of important information. 

We’re breaking down key parts of your Consolidated 1099 below.

Page 1

The first page of your Consolidated 1099 will contain your 1099-DIV, 1099-INT, and 1099-MISC summaries.

  • 1099-DIV:Contains reportable dividend and distribution payments
    • 1a: Ordinary (non-qualified) dividends received 
    • 1b: Qualified dividends, taxed at the capital gains rate (these are a portion of the Ordinary dividends listed in 1a)
    • 2a: Distributions from ETFs received 
    • 4: Tax withheld as a result of an IRS requirement, if any
  • 1099-INT: Contains reportable interest payments into your Invest account
    • 1: Interest received
    • 4: Tax withheld as a result of an IRS requirement, if any
  • 1099-MISC: Contains reportable miscellaneous payments received
    • 3: Income such as promotional, referral, or transfer bonuses
    • 4: Tax withheld as a result of an IRS requirement, if any
    • 5: Payment received in lieu of ordinary dividend or interest payment

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Page 2

The summary continues to the second page of the form.

  • 1099-B: Contains proceeds or losses incurred by the sale of securities
    • Short term transactions: Reports any sales of securities that have been held for one year or less, dependent on the covered status of the security
    • Long term transactions: Reports any sales of securities that have been held for longer than one year, dependent on the covered status of the security
    • Undetermined transactions: Reports any sales of securities for which Apex Clearing does not have the cost basis information for, and therefore cannot classify the sale 
    • Total Wash Sale Loss Disallowed: Reports any sales that are subject to wash sale rules, which means that these losses are not tax-deductible

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Pages 3 and beyond

The pages that follow your summary pages contain the details of the reportable transactions that occurred within your account. Any sales resulting in capital gains or losses will be listed, as well as reportable individual dividend and interest payments received into the account. Since every reportable transaction is listed separately, your Consolidated 1099 may end up being dozens of pages long.

If you have further questions about your Consolidated 1099, we recommend contacting a qualified tax professional or a tax accountant. 

If you have further questions, please contact us.

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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