Tax Reporting: U.S. Government Interest on Form 1099-INT
U.S. Government interest is reported separately for state tax reporting purposes.
In compliance with Treasury Department Circular 230, unless stated to the contrary, any information contained in this FAQ was not intended or written to be used and cannot be used for the purpose of avoiding tax penalties that may be imposed on any taxpayer.
Tax Reporting: If You Filed Taxes but Did Not Include Information Reported on Form 1099
You will have to file an amended tax return that includes the applicable information as reported on Form 1099. As the IRS verifies the information on your tax returns with the 1099s received from banks, brokers and other sources, you may receive a notice from the IRS indicating that your return was filed without the omitted information. Consult your tax or legal advisor for further information.
In compliance with Treasury Department Circular 230, unless stated to the contrary, any information contained in this FAQ was not intended or written to be used and cannot be used for the purpose of avoiding tax penalties that may be imposed on any taxpayer.
Tax Reporting: Form 2439
Form 2439, "Notice to Shareholder of Undistributed Long–Term Capital Gains", reports to owners of Regulated Investment Companies (RICs) and Real Estate Investment Trusts (REITs) undistributed capital gains allocable to them. A separate form 2439 will be issued for each investment. These forms will be issued 90 days following the fiscal year end of the RIC or REIT. Note that some RICs and REITs do not have calendar fiscal years, it is best to consult the website of the investment or your tax advisor for specific guidance in this area.
Tax Reporting: Reporting 1099 Information to the IRS
IB sends an electronic file to the IRS with the same information that was reported to you on Forms 1099.
In compliance with Treasury Department Circular 230, unless stated to the contrary, any information contained in this FAQ was not intended or written to be used and cannot be used for the purpose of avoiding tax penalties that may be imposed on any taxpayer.
Tax Reporting: Form 1099-DIV tax information
Generally, individual investors will need to report Form 1099-DIV information on IRS Form 1040, "U.S. Individual Income Tax Return." Depending on the type of information reported on your Form 1099-DIV, you may need to include with Form 1040 additional forms such as Schedule B, "Interest and Ordinary Dividends" Schedule D, "Capital Gains and Losses." and/or Form 1116, "Foreign Tax Credit." All IRS forms are available online free of charge at www.IRS.gov/formspubs or by calling the IRS at 800.829.3676 (800/TAX FORM).
In compliance with Treasury Department Circular 230, unless stated to the contrary, any information contained in this FAQ was not intended or written to be used and cannot be used for the purpose of avoiding tax penalties that may be imposed on any taxpayer.
Tax Reporting: Profit or Loss Realized for Closed Contracts on Form 1099 for Noncovered Securities
Profit or Loss Realized for Closed Contracts on Form 1099 for Noncovered Securities is the aggregate profit or loss recognized over the course of the year from transactions in commodity futures and regulated futures contracts which have been closed, reached final settlement or, in the case of options, expired.
Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.
W8 Re-certification
If you are not a U.S. citizen or entity formed within the U.S. and have an account with Interactive Brokers, you are requested to declare your citizenship or country of formation with the US tax authority (IRS). This declaration can be done online by correctly filling out the W-8BEN form. Filling out this form is an easy process that only takes a few minutes. In the short movie below, we show you where to find the W-8BEN in your IB account management and how to fill it out.
If you fail to declare your foreign citizenship or country of formation, and IB does not have a valid W-8BEN form on file, you are presumed to be a US person/entity without a proper tax certification. As a US person/entity, you will be subject to backup withholding at a rate of 28% on interest, dividends, and substitute payments in lieu; as well as gross proceeds.
Every 3 years the IRS requires a re-certification of the W-8BEN form. IB will ask the beneficial account owner to re-certify their foreign status by re-signing the W8-BEN in order to continue their status as a foreign person and claim the tax treaty benefits. If you experience any problems or have questions regarding the W-8BEN form or how IB handles Non-US persons and entities, select this Tax Information and Reporting link and choose the tab Non-US Persons and Entities or consult the following IRS information page for more details: www.irs.gov/instructions/iw8/ch02.html
IRA: Tax Reporting
The Internal Revenue Service (IRS) requires certain transaction reporting within the IRA
Tax forms for eligible accounts will be published by January 31 (Form 1099-R) and by May 31 (Form 5498). These forms display the IRA distributions and IRA contributions made for the previous tax year.
Select from the following for additional information.
What To Expect
IRA tax forms do report: deposits, withdrawals, rollovers, conversions, recharacterizations, year end fair market value, and US tax withholding from withdrawals.
IRA tax forms do not report: cost basis, sale proceeds, payments-in-lieu, dividends, credit interest, debit interest, foreign tax withholding, and trustee-to-trustee transfers.
Reconciling Transactions
Your Interactive Brokers monthly and annual activity statements list all IRA cash deposits and withdrawals, as well as broker-to-broker asset transfers via ACATS. The account statements provide the NAV for each transaction. Contribution and distribution tax years and codes do not appear on the activity statements.
In order to obtain specific IRA contribution/distribution designations, contact Client Service by Chat or Inquiry/Trouble Ticket via Account Management.
IRA Tax Corrections
Tax correction requests for open IRAs must be received in writing to Interactive Brokers, not Equity Trust Company, through the secure Inquiry/Trouble Ticket via Account Management.
For closed IRAs, we kindly ask you to submit correction request using the form available on our website through our Messaging System.
Understanding Form 1099-R
The IRS requires that any distribution or cash withdrawal taken in the prior year be reported by the account's administrator. This form reports the IRA distributions made from each IRA account type.
Data displayed is received from the withdrawals, conversions, and recharacterizations in your IRA. This may include money distributed to another tax-deferred account as a rollover, conversion, or recharacterization.
For explanations about each line item on the form, read the instructions for Participants or contact IB's Customer Service.
Understanding Form 5498
The IRS requires that any contribution or cash deposit received in the prior year be reported by the account's administrator. This form reports the IRA contributions made from each IRA account type. Generally, the tax form is published by May 31, but may be issued no later than June 30.
The data shown on the form includes the following:
- Prior Calendar Year's December 31 Fair Market Value
- Prior Year's Contributions
- Prior Year's Rollover Deposits
- Prior Year's Roth Conversions
- Prior Year's Recharacterizations
- SEP Contributions made in the Prior Year
For explanations about each line item on the form, read the instructions for Participants or contact IB's Customer Service.
Click here to return to the Retirement Account Resource page.
Disclaimer: IB does not provide tax advice. These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any international, federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor. We recommend that you consult a q
IRA: Charitable Donations from IRAs
概観:
IRA owners 72 or older may request an IRA distribution to be paid directly to an IRS “qualified charity” and may satisfy a required minimum distribution (RMD) with the withdrawal. Unlike the RMD paid directly to the IRA owner, the QCD is excluded from your taxable income.
Charitable Distributions
What is a Qualified Charitable Distribution (QCD)?
How to determine if a charity can receive the QCD
Where can an IRA owner find additional information on QCDs?
Withdrawal Processing
When can I submit my withdrawal?
Can IBKR customers submit a QCD withdrawal online?
What amount may be withdrawn? Why?
Where are the funds disbursed?
Does the distribution count towards the Required Minimum Distribution (RMD) amount?
Eligible IRA Accounts
Is the Charitable Distribution allowed from all IRAs held at IBKR?
Are the QCDs allowed from other IRA and retirement plans not held at IBKR?
QCD Tax Reporting
How is the QCD reported to the IRS?
Can any taxes be withheld from the distribution?
Do federal taxes have to be paid on the distribution?
Does a state or municipal tax have to be paid on the distribution?
Charitable Distributions
What is a Qualified Charitable Distribution (QCD)?
An otherwise taxable distribution from an eligible IRA owned by an individual 72 or older paid to an IRS qualified charity.
How to determine if a charity can receive the QCD?
The IRS Exempt Organizations Select Check allows users to "Search for Charities" among a list of organizations eligible to receive tax-deductible charitable contributions.
Where can an IRA owner find additional information on QCDs?
Visit Charitable Donations for IRAs for additional information on qualified charitable distributions. See also IRS Publication 590-b.
Withdrawal Processing
Account holders may submit a third party withdrawal from your IRA to a charity at any time via Client Portal. Any request designated as third party is subject to legal and compliance review. Therefore, we recommend that you allow enough time to meet the year end IRA withdrawal deadline.
As the circumstances associated with each request tend to be unique, IBKR cannot provide any assurance as to how long the review process will take or even whether the request will be approved at the conclusion of the review.
Can IBKR customers submit a QCD withdrawal online?
Yes. Account holders submit third party withdrawal requests via Client Portal.
What amount may be withdrawn? Why?
IBKR will process the withdrawal for any amount, as long as the account has sufficient available funds. Why? Although the QCD donations to the charity must not exceed $100,000 per year to retain QCD status, charitable gifts may exceed this limit.
Where are the funds disbursed?
Funds are made payable to the IRS qualified charity and mailed direct to the charity. Only funds disbursed to the charity can be designated from your IRA as a QCD.
Does the distribution count towards the Required Minimum Distribution (RMD) amount?
Yes
Eligible IRA Accounts
Is the Charitable Distribution allowed from all IRAs held at IBKR?
No, see the list below. IRA owners should contact a qualified tax advisor about how to preserve QCD tax benefits. Not all distributions are created equal. A tax advisor will be able to assess an IRA owner’s best choice.
Traditional IRA > YES
Rollover IRA > YES
Roth IRA > YES
Inherited IRA > YES, if the beneficiary is at least age 70 1/2
SEP IRA > NO
Education IRA > NO
Are the Charitable Distributions allowed from other IRA and retirement plans not held at IBKR?
No, not directly. Retirement plans, employer sponsored SEP IRAs, and Simple IRAs (account classifications not held at IBKR) are not eligible for a QCD election. IRA owners may be eligible to rollover assets from these plans into a traditional, rollover, or Roth IRA to request a charitable distribution. IRA owners should contact a qualified tax advisor or their retirement plan administrator.
QCD Tax Reporting
How is the QCD reported to the IRS?
IBKR will report the charitable distributions on Form 1099-R when issued. See Reports and Dates for 1099 availability dates.
Can any taxes be withheld from the distribution?
No.
Do federal taxes have to be paid on the distribution?
Generally, federal taxes are not paid with QCDs. But distributions in excess of the IRS limit may be subject to income tax. IBKR recommends that customers contact a qualified tax advisor.
Does a state or municipal tax have to be paid on the distribution?
Contact your tax advisor or local tax authority on state and municipal requirements for the distributed amount.
Disclaimer: IBKR does not provide tax advice. These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any international, federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor. We recommend that you consult a qualified tax advisor or refer to the U.S. Internal Revenue Service.
Year End Statement & Report Comparison
概観:
The Interactive Brokers Year End Reports provide an activity review for US persons and US entities. The various account statements provide the transaction details as the basis for each report. Each of the standard reports spans the time period from January 1 through December 31.
Some reports, such as the Gain/Loss Summary Worksheet, may consolidate transactions and calculations. For the sake of conserving volume, trade activity may be combined. The account statements include all activity. For your convenience and to assist with your reconcilation, customized statements permit activity displays suitable for your personal needs (see the tab "Customized Templates" for details).
All US tax reports include the total figures as required under the US tax laws.
Non-US Persons and Entities
Income paid from US sources to non-US persons and entities may find this comparison helpful. IB is required to withhold US taxes at a rate of 30% on payments of US source stock dividends and substitute payments in lieu. Both the withholding and the income is reported on the US tax Form 1042-S.
For additional information about how IB handles non-US persons and entities, select this Tax Information and Reporting link and choose the tab Non-US Persons and Entities.
Year End Reports (For Trading) Comparison shown below identifies the most common transaction types which appear on the year end reports. Not all activity is included on each report.
| Year End Reports | Stock | Bond | Equity & Index Option | Single Stock Futures | Futures | Forex |
| Form 1099 | Sell | Sell | - | - | Gain/Loss | - |
| Form 1042-S | - | - | - | - | - | - |
| Annual Statement | Buy/Sell Gain/Loss | Buy/Sell Gain/Loss | Buy/Sell Gain/Loss |
Buy/Sell Gain/Loss |
Buy/Sell Gain/Loss |
Buy/Sell Gain/Loss |
| Gain/Loss Worksheet |
Cost/Sell Gain/Loss | Cost/Sell Gain/Loss | Cost/Sell1 Gain/Loss1 | Cost/Sell Gain/Loss | - | - |
| 1256 Worksheet |
- | - | Gain/Loss5 | - | Gain/Loss | - |
NOTES: (1) Only cash settled; (2) Gain/Loss Worksheet was first published by IB with tax year 2007. Worksheets for prior years are not available. IB did provide gain and loss data on the Annual Statements; (3) The 1256 Worksheet was first published by IB with tax year 2008; (4) Option transactions are not 1099 or 1042-S reportable transactions. In accordance with the IRS guidelines, IB excludes the activity from the tax reports; (5) Only broad-sed index options appear on the 1256 Worksheet
Year End Reports (For Income) Comparison shown below identifies the most common types of income which appear on the year end reports. Not all income is reportable on a 1099 or Dividend Summary.
| Year End Reports | Dividends | Credit Interest | Debit Interest | Accruals | Pay In Lieu Credit | Pay In Lieu Debits | Fees |
| Form 1099 | Yes | Yes | No | No | Yes | No | No |
| Form 1042-S | Yes | Yes | No | No | Yes | No | No |
| Annual Statement | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Dividend Summary | Yes | No | No | No | Yes | Yes | No |
| Gain/Loss Worksheet | No | No | No | No | No | No | No |
| 1256 Worksheet | No | No | No | No | No | No | No |
NOTES: (1) US Tax Form 1042-S is provided to non-US persons/entities, along with the Dividend Summary. The Tax Form reports interest, dividends, substitute payments in lieu, and US tax withholding from US securities; (2) For US persons/entities, the Dividend Summary may list dividends as potentially eligible for treatment as “Qualified” based on the holding period. IB does not report this on the 1099-DIV or to the Internal Revenue Service; (3) Debit transactions are not 1099 or 1042-S reportable transactions. In accordance with the IRS guidelines, IB excludes the activity from the tax reports; (4) Exchange, market data, and activity fees
