Regular brokerage accounts are subject to annual tax reporting, especially if you received interest or dividend income or proceeds from a sale or other disposition of a security. Such income is recorded on various versions of Form 1099 or on a single 1099 Composite form issued by your brokerage firm. These forms report taxable investment income when filing your tax return and are sent to both the account owner and the IRS.
For each brokerage account you hold at Schwab, you'll receive a "1099 Composite and Year-End Summary," which combines different 1099 types into a single document, based on the activity in your account.
Important sections of the 1099 Composite form
The primary forms of investment income you'll need to include in your tax filing are contained in the following three sections of your 1099 Composite:
- 1099-DIV: This section shows any dividend income from securities like stocks and exchange-traded funds (ETFs) and capital gains from securities like mutual funds.
- 1099-INT: This reports interest income that could be generated from fixed income securities like municipal bonds, Treasuries, and certificates of deposit (CDs).
- 1099-B: This shows realized gains and losses made from selling securities or from other events, such as taxable corporate actions.
In addition to these three forms, your Schwab 1099 Composite may also include a 1099-MISC (Miscellaneous), which reports royalties or substitute payments, or a 1099-OID (Original Issue Discount), which reports fixed income that has OID reporting. The Year-End Summary shows additional information you may need to complete your tax return, depending on the type of investments in your brokerage account.
Keep in mind, any activity within a tax year that generates income may impact your tax filing, even if that information is not reported to you on a tax form, such as income from cryptocurrency transactions or from a rental property.
Be sure to consult with a tax professional regarding your specific tax needs.
When can I expect to receive my 1099 Composite form?
Schwab sends its 1099s in three waves. The first wave is typically sent out at the end of January, the second goes out by mid-February, and a third wave at the end of February. If you have more than one brokerage account, you'll receive a 1099 Composite for each account you hold.
You'll receive an email notification either when your 1099 Composite is available online or when we've mailed you a paper copy, depending on your delivery preferences.
Looking for your 1099s?
Learn more about accessing your tax documents. You can also visit your 1099 Dashboard to access your forms anytime or see when they'll become available.
Bottom line on 1099 Composite tax forms
Reporting your investment income on your taxes can be a confusing process, and you don't want to risk a tax audit for underreporting. Your financial advisor or tax professional can explain the sections of your 1099 Composite and determine if, or how much, your investments are generating.
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This material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice.
All expressions of opinion are subject to change without notice in reaction to shifting market, economic, or political conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.
Investing involves risk, including loss of principal.
This information is not a specific recommendation, individualized tax, or legal advice. Tax laws are subject to change, either prospectively or retroactively. Where specific advice is necessary or appropriate, individuals should contact their own professional tax and investment advisors or other professionals (CPA, Financial Planner, Investment Manager, Estate Attorney) to help answer questions about specific situations or needs prior to taking any action based upon this information.
The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.