Tax Forms for Mutual Fund Income

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Tax Forms for Mutual Fund Income

If you own shares in a mutual fund, you will need to know which tax forms to use to report your mutual fund income to the government. Each of the forms described below will be sent to you (and to the IRS) by your mutual fund company.

Form 1099-DIV

Form 1099-DIV will typically be sent to you in January. It will show you how much ordinary dividend income you earned in the previous year. It will also show you your short-term and long-term capital gains dividends, along with any return of capital you received. Dividends are taxable even if you did not take them in cash but reinvested them in the fund instead.

Form 1099-B

Form 1099-B reports sales of mutual fund shares. It reports the gross proceeds of the sales. You will also need a cost basis statement showing your cost for shares sold. Many mutual fund companies send you a cost basis statement that uses the average cost per share. You can calculate your own cost basis statement if you keep careful records of all your mutual fund transactions.

Form 1099-R

Form 1099-R shows you any withdrawals made from retirement plans.

Schedules B and D

Information on taxable income must be transferred to your income tax return. You will record your dividend income on Schedule B, and capital gains and capital losses on Schedule D.

You should compare information returns received from mutual fund companies with your own records. If you receive an informational return that is not accurate, contact your mutual fund company and request a correction. You are responsible for accurate reporting of income and taxes to the IRS on your own tax return.