If you have an investment account with Merrill Edge, you’ll likely receive a Form 1099 at tax time. This document is essential for accurately reporting your investment income to the IRS. Here’s everything you need to know about getting your Merrill Edge 1099 and how to use it for tax filing.
What Is a Merrill Edge 1099?
A Merrill Edge 1099 is a tax document issued to investors who have received taxable income from their investment accounts. The form reports interest, dividends, capital gains, and other investment-related earnings that must be included in your tax return. Merrill Edge typically provides a Consolidated 1099, which may include multiple forms such as:
- 1099-DIV – Reports dividend income
- 1099-INT – Reports interest income
- 1099-B – Reports capital gains and losses from securities sales
- 1099-MISC – Reports miscellaneous investment-related income
- 1099-OID – Reports original issue discounts on bonds
How to Get Your Merrill Edge 1099
Merrill Edge issues 1099s annually, usually by mid-February. You can access your form in two ways:
- Online via Merrill Edge Website:
- Log in to your Merrill Edge account.
- Navigate to the “Statements & Documents” section.
- Select “Tax Documents” and download your 1099.
- By Mail:
- If you opted for paper delivery, Merrill Edge will mail your 1099 to the address on file. Ensure your mailing address is up to date to avoid delays.
Key Information on Your Merrill Edge 1099
Your 1099 will detail all taxable investment activities for the year. Here’s what you need to review:
- Dividends and Interest: Confirm that the reported income matches your records.
- Capital Gains and Losses: Ensure the cost basis of securities sold is accurately recorded.
- Foreign Tax Paid: If you own international investments, you may qualify for a foreign tax credit.
- Wash Sales: Be aware of any disallowed losses due to the wash-sale rule.
Using Your 1099 for Tax Filing
Once you receive your 1099, you’ll need to use it to complete your tax return. If you use tax software like TurboTax or H&R Block, you can import your Merrill Edge 1099 directly. If you work with an accountant, provide them with a copy to ensure accurate reporting.
Your investment income may be subject to different tax treatments. For example:
- Qualified dividends are taxed at lower capital gains rates.
- Short-term capital gains are taxed as ordinary income.
- Long-term capital gains receive favorable tax rates.
What to Do If Your 1099 Is Incorrect
If you notice errors on your Merrill Edge 1099, contact Merrill Edge customer support immediately. They may issue a corrected 1099 if necessary. Filing with incorrect information can lead to IRS notices or penalties.
Final Thoughts
Your Merrill Edge 1099 is a crucial document for tax reporting. Be sure to download or receive it early, review it carefully, and report your investment income accurately to avoid IRS issues. If you need help, consider consulting a tax professional.