Betterment is a popular robo-advisor that offers automated investment management services for individuals looking to grow their wealth. Whether you’re a seasoned investor or new to the platform, understanding the tax implications of your investments is crucial. One of the key documents you’ll need for tax filing is the Betterment 1099 form. This guide will explain how to access it and what you need to know to use it correctly.
What is a Betterment 1099?
The Betterment 1099 form is a tax document provided by Betterment that reports your taxable income for the year from investments held in your Betterment account. This includes capital gains, dividends, and interest income. If you’ve had any taxable activity, such as buying and selling securities, the form will help you report these transactions accurately on your tax return.
Betterment may issue several types of 1099 forms, depending on the types of income you’ve earned. The most common forms are the 1099-B (for capital gains from sales of securities), 1099-DIV (for dividend income), and 1099-INT (for interest income). Understanding each of these forms is crucial for proper tax reporting.
How to Access Your Betterment 1099
Accessing your 1099 form from Betterment is a simple process. Here’s how to do it:
- Log into Your Betterment Account – Start by logging into your Betterment account through the website or mobile app.
- Go to the “Tax Documents” Section – Once logged in, navigate to the “Tax Documents” section. This is where Betterment stores all important documents related to your account, including your 1099 form.
- Download Your 1099 – Look for the 1099 form for the relevant year. Betterment typically makes these documents available by mid-February. When you find it, simply download the form to your device.
- Check Your Email – Betterment will also notify you via email when your 1099 form is ready. The email will provide instructions on how to access and download your tax documents.
Important Dates to Remember
The IRS requires brokerage firms to send out 1099 forms by February 15th of the following year. Betterment typically releases 1099 forms by this date, but in some cases, there may be a delay. If you don’t receive your 1099 form by mid-February, contact Betterment support for assistance.
What to Do with Your Betterment 1099
Once you’ve downloaded your Betterment 1099 form, you can use it to complete your tax return. Here’s what to do:
- Report Your Income – The 1099 form will outline various types of income from your investments, such as dividends, interest, and capital gains. You’ll need to include these amounts when filing your taxes.
- Use Tax Software or a Tax Professional – If you’re using tax software like TurboTax or H&R Block, you can import your 1099 form directly into the system. Most tax programs offer an easy upload feature for brokerage documents. Alternatively, you can provide the form to a tax professional for assistance with your tax filing.
- Be Aware of Different Tax Rates – Different types of income reported on the 1099 form are subject to different tax rates. For example, long-term capital gains (for assets held for more than one year) are taxed at a lower rate than short-term capital gains, which are taxed as ordinary income.
What to Do if You Don’t Receive a Betterment 1099
There are cases where you might not receive a 1099 form from Betterment. This can happen if your earnings or trading activity fall below the reporting threshold. Additionally, if you didn’t engage in taxable activity during the year, you may not receive a form. However, it’s still a good idea to double-check your account to ensure all transactions are accurately reported.