Vanguard Brokerage Tax Forms

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Zr01tg
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Vanguard Brokerage Tax Forms

Post by Zr01tg » Tue Feb 14, 2017 7:53 pm

First post here.

I transferred a mutual fund account to a brokerage account. Just received my tax package and would like to ask a question. When reporting 1099DIV and 1099INT do you use the combined amounts on the first page as it's listed under one account number and Tax Payer ID or do you still need to break out each mutual fund as a separate entry on my tax forms as one does with a mutual fund account with multiple funds?

Thanks

livesoft
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Re: Vanguard Brokerage Tax Forms

Post by livesoft » Tue Feb 14, 2017 8:06 pm

Why not just use the import function of your tax software and see what it does?

I would tell you what my tax software import does, but I only have one single fund held at Vanguard, so it would not help you with your question. Let's hope someone else comes along and provides an answer verified by experiment.

My sense is that it doesn't matter ... either way will be fine as far as the IRS is concerned because I import from my other brokers and only the summary numbers from the first page end up on Schedule B.

(But do NOT combine 1099-INT and 1099-DIV numbers since those numbers go to different places on Schedule B.)
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SGM
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Re: Vanguard Brokerage Tax Forms

Post by SGM » Tue Feb 14, 2017 8:19 pm

I have had several brokerage accounts and I only reported the total dividends, qualified dividends and tax exempt dividends without dividing it into what ETFs or stocks it came out of.

I don't know what happens to a mutual fund account that has been upgraded to a brokerage account.

Zr01tg
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Re: Vanguard Brokerage Tax Forms

Post by Zr01tg » Wed Feb 15, 2017 9:34 am

Thanks for the quick replies.

I received two tax documents one for mutual funds before the transfer and another for the brokerage account. I am going to report dividends and interest from each mutual fund from the mutual fund account and use the total dividends/interest from the brokerage account instead of reporting each individual mutual fund. I will verify by importing as livesoft suggested but I tended to avoid importing data as I am concerned about security.

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neurosphere
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Re: Vanguard Brokerage Tax Forms

Post by neurosphere » Fri Jan 19, 2018 12:57 pm

I realize this is a thread from a year ago, but I'm sure this question will come up again this tax reporting year. In fact, it probably already has, I haven't searched.

But for non-brokerage account 1099-DIVs, there is this phrase located at the bottom:
Please Note: Each specific fund name, NOT simply Vanguard, must be reported along with the related tax information on Form 1040, Schedule(s) B and D. This applies to Form 1099-DIV.
For those with multiple funds in taxable accounts (like I do, with several munis funds and foreign funds include tax-loss-harvesting pairs), this can be a pain in the rear. It seems if one were to upgrade to a brokerage account, one could simply enter the totals on one 1099-DIV in the software. That's one advantage to upgrading! :D

Neurosphere

P.S. My tax software does not allow importing from Vanguard
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oneleaf
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Re: Vanguard Brokerage Tax Forms

Post by oneleaf » Fri Jan 19, 2018 1:25 pm

Yep, payer is listed at the top (Vanguard Marketing Corporation is what it has been in the past), and the summary (consolidated numbers) are the correct numbers to use. The numbers separated by funds are for your own information and it would be technically incorrect to use those. This is why the combined brokerage account is nice. It’s easy enough that I don’t even bother importing it.

1099-B's are different in that you can choose to summarize, but it takes care. You can only summarize numbers within a certain category and there can't be any adjustments.

But the 1099-DIV and 1099-INT are different in that the summary IS the form. There is only one payer (Vanguard), and listing payers as separate funds is not correct.

dbr
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Re: Vanguard Brokerage Tax Forms

Post by dbr » Fri Jan 19, 2018 1:31 pm

I went and looked at my TurboTax prepared tax returns and dividends and interest are reported by payer, where payer is an institution and not a fund. That is, the tax return totaled all the payments from all the funds held at that broker. There are separate reports for my wife and for me as we do not have joint brokerage accounts, but that is separate accounts at the same broker and not separate funds inside one account. My TurboTax is filled out by downloading the 1099s electronically.*

*It is possible in reading reports from the broker that a fund is called an account, but in fact a fund is not an account. Also at some institutions I have an "account" that includes accounts that are not brokerage accounts, but that account is not an "account" maybe.

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