M1 Finance is a popular online brokerage platform that allows users to manage their investments in stocks, ETFs, and other assets. Whether you are a seasoned investor or just starting, it’s essential to understand the tax implications of your trades. The M1 Finance 1099 form is a crucial document for tax reporting, and this guide will explain how to obtain it and what you need to know.
What is an M1 Finance 1099?
The M1 Finance 1099 form is a tax document issued by the platform that reports your investment income for the year. It includes crucial information on earnings such as capital gains from the sale of securities, dividends, and interest income. This form is necessary for U.S. taxpayers to accurately report their taxable income to the IRS.
There are different types of 1099 forms that M1 Finance may issue, including the 1099-B (for sales of securities), 1099-DIV (for dividend income), and 1099-INT (for interest income). Depending on your account activity, you may receive one or more of these forms.
How to Access Your M1 Finance 1099
Obtaining your 1099 form from M1 Finance is straightforward. Here’s how to get it:
- Log into your M1 Finance Account – Begin by logging into your M1 Finance account through the website or mobile app.
- Go to the “Documents” Section – Once logged in, navigate to the “Documents” section. This is where you’ll find all important documents related to your account, including tax forms and investment reports.
- Download Your 1099 – Look for the 1099 form for the relevant tax year. M1 Finance typically releases these forms by mid-February. Once you locate the form, simply download it to your device.
- Check Your Email – M1 Finance will also notify you via email once your 1099 form is available. The email will include instructions on how to access and download the form.
Important Dates to Remember
The IRS requires brokerage firms to send out 1099 forms by February 15th each year. M1 Finance aims to have your 1099 form available by this date. If you haven’t received your form by mid-February, it’s a good idea to contact M1 Finance support for assistance.
What to Do with Your M1 Finance 1099
Once you have your M1 Finance 1099 form, you can use it to file your taxes. Here’s how to proceed:
- Report Your Income – The 1099 form will outline various types of income from your investments, such as dividends, interest, and capital gains. This information must be entered on your tax return.
- Use Tax Software or a Professional – If you’re using tax preparation software like TurboTax or H&R Block, you can import your 1099 form directly into the system. Many tax programs allow for easy upload of brokerage tax documents. Alternatively, provide the form to your tax professional for assistance with filing.
- Understand Tax Rates – Different types of income reported on the 1099 form are taxed at different rates. For instance, short-term capital gains are taxed as ordinary income, while long-term capital gains (for assets held longer than a year) are taxed at a reduced rate.