Consolidated 1099-DIV or individual entries

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news_watch
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Consolidated 1099-DIV or individual entries

Post by news_watch » Sun Feb 19, 2017 12:49 pm

Folks,

Rookie question here, but I can't seem to find a straightforward answer from Google.
I have a single 1099-DIV from Vanguard with the details of each holding, stocks and mutual funds, broken down in the back pages.
On my previous returns I completed an entry for each holding outside of stocks,i.e. each mutual fund was entered separately.
I'm sure I was operating on the basis that Uncle Sam would want to see each fund to match their records.
With the consolidated 1099_DIV I would think I can do a single entry without fear of the uncle come calling?

Thanks,
News_watch

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Toons
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Re: Consolidated 1099-DIV or individual entries

Post by Toons » Sun Feb 19, 2017 12:51 pm

I don't know the exact answer.
I have always listed each Vanguard fund separately
And continue to do so :happy
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livesoft
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Re: Consolidated 1099-DIV or individual entries

Post by livesoft » Sun Feb 19, 2017 12:54 pm

Single entry. Just "import" into tax software and compare to the 1099-DIV. See?
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jane1
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Re: Consolidated 1099-DIV or individual entries

Post by jane1 » Sun Feb 19, 2017 6:11 pm

Each Payer ID should be listed separately. So if your consolidated 1099 has a single Payer ID listed, you enter the combined amount. Else separate.

RudyS
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Re: Consolidated 1099-DIV or individual entries

Post by RudyS » Sun Feb 19, 2017 10:29 pm

When you file, schedule B does not ask for EIN of the payer. So, the IRS will (almost) certainly only be able to match the total with the total of the 1099-DIV's it gets. The previous advice, to do a single entry, is the way to go.

icefr
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Re: Consolidated 1099-DIV or individual entries

Post by icefr » Mon Feb 20, 2017 12:42 am

RudyS wrote:When you file, schedule B does not ask for EIN of the payer. So, the IRS will (almost) certainly only be able to match the total with the total of the 1099-DIV's it gets. The previous advice, to do a single entry, is the way to go.
My vanguard 1099-DIV form has a different payer Id for each mutual fund. So they should each be entered separately.

sport
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Re: Consolidated 1099-DIV or individual entries

Post by sport » Mon Feb 20, 2017 12:53 am

I follow a simple approach. If the 1099 shows a total, I use the total. If the 1099 lists individual holdings, but no total, I use the individual holdings. So, my Schedule B matches what is shown on the 1099. This lets the IRS match what they have to my tax return in the easiest most straightforward manner.

STMN
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Re: Consolidated 1099-DIV or individual entries

Post by STMN » Mon Feb 20, 2017 1:43 am

Enter them separately.

Different funds have different federal and state tax consequences. For example, the tax-exempt funds are excluded from federal income tax. Funds with US government securities may be excluded partially or entirely from your state income tax. Without entering them individually, you can't properly report them. I use H&R Block software and it's easy to enter each investment properly.

And, as a practical matter, I like to make it easy for the IRS computers to match my items of reported income to the 1099s. I prefer not to hear from them...other than "thank you and here's your refund".

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House Blend
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Re: Consolidated 1099-DIV or individual entries

Post by House Blend » Mon Feb 20, 2017 10:10 am

news_watch,

The seemingly contradictory answers you are seeing here and from Google have to do with the difference between old style mutual fund only accounts at Vanguard, and their brokerage accounts.

If you became a Vanguard customer as of last year, then you almost certainly have (only) a brokerage account. In that case, you report your Vanguard dividends on Schedule B all on one line.

If you are a crotchety old mutual fund customer, not brokeraged, then each mutual fund dividend should be reported on a separate line, and the fine print at the bottom of your 1099-DIV explicitly tells you to do this.

If you upgraded from crotchety to brokeraged in 2016, then you will have two 2016 Forms 1099-DIV, and you will do both. Your Schedule B might look like this:

Code: Select all

Fund X...................................$2,000
Fund Y...................................$1,000
Fund Z.....................................$500
Vanguard Brokerage and Chowder Society...$2,500

Total....................................$6,000

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AAA
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Re: Consolidated 1099-DIV or individual entries

Post by AAA » Mon Feb 20, 2017 11:02 am

What House Blend said...and to address STMN's concern, after entering it all one one line, my tax software (H&R Block) asked how much of the exempt interest dividends are attributable to my state of residence.

NorCalHiker
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Re: Consolidated 1099-DIV or individual entries

Post by NorCalHiker » Wed Apr 11, 2018 2:15 am

I know this thread is a year old, but I'm finally getting around to doing my taxes and started worrying about this now! Any thoughts on this? I entered my 2016 1099-DIV as individual entries, despite it being a brokerage account and now I'm leaning towards entering it in as one consolidated entry. My reasoning is that when the IRS checks the 1099 DIV, how will they know add up the individual entries for Vanguard? Unless they have a list of CUSIPs that the consolidated 1099 is composed of, I don't see how they would do this. Before the transition to a brokerage account (which I believe I did in tax year 2015), the 1099 seemed more distinct.

I also don't seem to see the fine print (that HouseBlend refers to above) at the bottom of my consolidated 1099 DIV that indicates that I need to have individual entries, unless I missed it. What exactly would it say if I'm supposed to separate into individual entries?

Thanks.

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