Understanding your 2024
1099 statement
An indispensable tax-planning tool How to obtain a detailed tax guide
organized in an easy-to-read format You may obtain a more detailed “2024 Tax Information
Completing your federal income taxes can be complicated. Guide” as well as additional tax information on royalty
Whether you prepare your own return, work with a trusts from our website at wellsfargoadvisors.com. The
professional tax preparer, or use tax software, this tax- tax guide has been designed for your general guidance. It is
planning guide provides an easy-to-read summary of your not intended to be, nor should it be construed as, the basis
reportable and certain non-reportable information to assist of tax advice. Two IRS publications from the IRS website
in completing your tax return. If you are receiving your tax (irs.gov*) are particularly useful: Publication 17 (Your Federal
package in paper form, please note online tax documents Income Tax) and Publication 550 (Investment Income
are also available. If you would like to receive your tax and Expenses).
documents online, please contact your financial advisor
for enrollment information. Subsequent and/or amended
Your tax package reflects the sources and amounts of tax forms possible
your income and proceeds for the year. Information If you hold investments in a mutual fund, regulated
reported to the IRS is denoted accordingly in the package. investment company (RIC), real estate investment trust
Other information that may be helpful in completing your (REIT), unit investment trust (UIT), foreign security, or any
tax return is included within this package, but not reported other stock that makes a late dividend-change
to the IRS. This includes the Additional Realized Gain/Loss announcement, you may receive one or more amended tax
Information, Supplemental Tax Statement and, if eligible, form(s) to include information provided by these issuers
the Annual Statement Information. The data shown in after your original tax form was created.
these sections are for informational purposes only but may
be used in addition to the information provided in your tax Additionally, information regarding whether or not a
forms. If you have questions about your tax package, please dividend paid by a foreign company is eligible for the
contact your financial advisor. “qualified dividend” tax rate is subject to change based on
that company’s filings with the SEC or subsequent
published guidance.
*Wells Fargo Clearing Services, LLC has provided this link for your convenience but does not control or endorse the website and is
not responsible for the products, services, content, links, privacy policy, or security policy of this website.
Investment and Insurance Products are:
• Not Insured by the FDIC or Any Federal Government Agency
• Not a Deposit or Other Obligation of, or Guaranteed by, the Bank or Any Bank Affiliate
• Subject to Investment Risks, Including Possible Loss of the Principal Amount Invested
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An amended tax form will be issued to you reflecting late recognized as income even though it may not have been
reclassification information we receive from the companies received. This includes the reporting of market discounts
or paying agents. Wells Fargo Clearing Services, LLC and acquisition premium amounts for covered securities.
(“WFCS”) will not be liable for any costs related to your The Form 1099-OID amounts reported to the IRS are
filing of an amended tax return as a result of WFCS shown in the “Reportable Tax Information” section.
receiving reclassification information from the issuer Please note, for tax-exempt obligations that are covered
after we have generated your original Forms 1099 or securities acquired on or after January 1, 2017, the
any subsequent revisions by the issuer of previously OID for the part of the year it was owned by the record
provided information. holder will be reported on Form 1099-OID. The OID for
a tax-exempt obligation that is a noncovered security
The IRS does not require financial institutions to provide or a covered security acquired before January 1, 2017,
clients amended 1099s for amounts where the change in is provided as supplemental information in the “Federal
any box is $100 or less. If you would like to receive Non-reportable Information” section of your statement.
amended 1099s for corrections less than $100, please
• 1099-B Summary — Proceeds from broker and barter
contact your financial advisor.
exchange transactions show gross proceeds (less
Our original Forms 1099 will be issued to clients between commissions and options premiums) from sales or
late January and the end of February. If you have multiple redemptions of securities and corporate actions, such as
brokerage accounts, you may receive some Forms 1099 in mergers and acquisitions. The Form 1099-B amounts
January but may not receive Forms 1099 for all of your reported to the IRS are shown in the “Reportable Tax
accounts until late February. Please ensure that you have Information” section. For covered securities, the Form
received the required tax forms for all accounts that may 1099-B can also include information about wash
have tax reportable activity before completing your tax sales where some or all of the loss cannot be currently
forms for the IRS. Note: The IRS does not require financial recognized and deferred market discount included in the
institutions to provide Forms 1099 for any accounts that gain amount that is treated as ordinary income. Realized
received less than $10 in reportable income for the tax year. and unrealized profits and losses from Regulated Futures
Contracts are also reported on this form.
Summary of tax package information • 1099-MISC and 1099-C — Miscellaneous payments and
cancellation of debt must be reported on these forms.
In general, Forms 1099-DIV and 1099-INT income is Additional information supporting the totals shown
reportable by WFCS to the IRS in the aggregate. For Forms here can be found in the “Details of Reportable Tax
1099-B and 1099-OID, it is reportable to the IRS at the tax Information” section.
lot or transaction level (some exceptions apply). To assist
you with completing your tax return, this package includes
both a summary of the total amounts and a detailed section
for each type of Form 1099 we are required to report.
Your Forms 1099
These include:
Important messages
• 1099-DIV — Dividends and distributions from stocks
Please carefully read through the following as it might be
and other investments. This includes capital gains
helpful to you as you prepare your tax return.
and non-dividend distributions (return of capital).
Additional information supporting the totals shown Multiple tax forms
here can be found in the “Details of Reportable Tax If you changed broker-dealers during the year or had an
Information” section. account that converted to Wells Fargo Clearing Services,
• 1099-INT — Interest income paid to you during the LLC (“WFCS”) and had reportable activity prior to your
year from debt securities. This includes the reporting account clearing through WFCS, you will receive separate
tax forms from your previous clearing firm for that
of market discounts and bond premiums for covered
activity. Make sure you have all of your tax forms from all
securities. Additional information supporting the totals
firms before completing your return.
shown here can be found in the “Details of Reportable
Tax Information” section. Continued on pages 3 & 4
• 1099-OID Summary — Original issue discount (OID)
accrued during the year on debt instruments that must be
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Realized gain/loss information General information
This information may not match the reportable tax information Correction requests
presented in the preceding pages that is subject to different
You should review your Forms 1099 and immediately contact your
reporting rules. The “Unknown Term Realized Gain/Loss” section
financial advisor if you think an amendment may be necessary.
includes lots that could not be matched to a corresponding
transaction reported on the Form 1099-B. The “Unknown Term” Original-issue discount reporting — Form 1099-OID
section of the Form 1099-B may, or may not, include some similar
In addition to the current OID reporting in place, we must also
lots. For example, certain corporate actions require that we report
report market discount, bond premium, or acquisition premium
only the cash proceeds while the taxpayer may need to account for
amounts on the applicable Form 1099-OID or Form 1099-INT
the cash and fair market value of shares received as proceeds.
based on broker reporting defaults or differing customer elections
We provide this information.
for which we were notified in writing by year-end. Pursuant to the
Federal Non-Reportable information IRS reporting regulations, Wells Fargo Advisors has defaulted all
customers to amortize premiums annually on all fixed income
The Federal Non-Reportable section provides information about
securities purchased at a premium. In addition, the recognition of
items, such as miscellaneous debit interest, expense items, and market discounts will be deferred until the debt instrument is
accrued interest on purchases which may prove useful in the disposed of by maturity, sale, or exchange. As supplemental
preparation of your federal, state, or local taxes. information for “less complex” bonds acquired prior to
Wells Fargo Clearing Services, LLC as “payer” January 1, 2014, as well as “more complex” bonds acquired prior to
January 1, 2016, the market discount amount is being accreted
When you file your tax return, list Wells Fargo Clearing Services, and reported annually. To review your elections, contact your
LLC (“WFCS”) as the payer for all dividends and interest received financial advisor.
through your brokerage account. Do not list the name of the
Some contingent payment debt instruments (CPDI) require
security issuer, your brokerage firm, or any other entity.
OID-accrual reporting in lieu of the interest payments you
Only Forms 1099 information is provided to the IRS received. The accrual amounts are generally different from the cash
payment and were not subject to IRS cost basis reporting rules
When preparing your tax return, use the information provided
until tax year 2016. CPDI securities generally result in ordinary gain
on your Forms 1099 — not your monthly or quarterly statements.
or loss. This information will now be indicated on your Form
Because of IRS requirements, amounts shown on your Forms 1099
1099-B. Please consult IRS Publication 1212 and your tax advisor
may not always correspond to what appears on your monthly/
about your income adjustment requirements elections for these
quarterly account statements or trade confirmations. The
types of securities.
information on your Forms 1099 is what is reported to the IRS.
WFCS reports only the line/box total amounts for Forms 1099-DIV, IRS Form 1099-B transactions
1099-INT, and 1099-MISC. You should consult with your tax
advisor about any income-reporting adjustments that may be Form 1099-B reports gross proceeds (on a trade-date basis, less
possible based on your unique reporting situation. commissions or options premiums) received from the sale or
exchange of securities, tender offers, cash received in lieu of a
To mortgage backed security holders — additional reporting fractional share, various corporate actions, implicit redemptions,
in March partial return of principal payments, and the final redemption
payment you received on all debt obligations (including municipal
If you own any widely held mortgage trust (WHMT), real estate
bonds and CDs). It is your responsibility to determine and report
mortgage investment conduit (REMIC), or certain collateralized
the applicable gain or loss by completing IRS Form 8949 along with
mortgage obligation (CMO) securities, all reporting information on
Schedule D of your IRS Form 1040. Securities are identified as
these securities will be mailed to you no later than March 17, 2025.
“covered” or “noncovered,” or “unknown” on the Form 1099-B to
Your enclosed statement will contain a listing of the REMICs,
assist your filing. Wells Fargo Clearing Services, LLC only reports the
CMOs, and/or WHMTs that you own. Do not file your tax return
cost basis to the IRS for covered securities. Your tax advisor should
until you receive this additional information.
be aware of which situations require adjustments to your cost basis
“Substitute payments” reminder and where the difference between your basis and proceeds may not
qualify for capital gain or loss treatment and be reported as
Payments made while securities were loaned from an individual
ordinary income or loss. Pursuant to the IRS “Instructions for Form
taxpayer’s margin account are subject to reporting as “substitute
1099-DIV,” any net short-term gains distributed by a mutual fund
payments in lieu of dividends or interest” on Form 1099-MISC.
are reportable on IRS Form 1099-DIV as ordinary dividends instead
For example, if you note a dividend total in your December
of gains on Form 1099-B. Other types of capital gain distributions
statement that is different from your Form 1099-DIV amount,
made by a mutual fund or REIT are also reported on the Form
that difference could be the result of a dividend payment being
1099-DIV instead of on the Form 1099-B or “Realized Gain/Loss
identified as a substitute payment and reported on Form
Statement” in accordance with the IRS instructions.
1099-MISC.
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Income reporting — applicable dates Federal income tax withheld
In accordance with IRS regulations, WFCS reports dividend and Clients who have not furnished a taxpayer identification number
interest income to you based on when it is “credited or set apart” in (TIN) (usually a Social Security number), or the proper certifications
your account so that it may be withdrawn at any time by you (see IRS Form W-9), to the payer of most types of investment
without any limitation. Proceeds from the sales of securities are income (for example, dividends, interest, or gross proceeds)
reportable based on the trade date rather than the settlement become subject to backup withholding at the applicable federal
date because that is the first date it was entered on our books. withholding rate. This amount is charged to your account and paid
Exceptions do apply, such as for RIC payments in January of the to the IRS as required by law. Backup withholding is also required if
current year that were declared in the prior calendar quarter or the IRS notifies us that a taxpayer has under-reported dividends or
implicit redemptions within a structured security. interest in the past or if the TIN being used to report income does
not match a name on the records with the Social Security
Limited-partnership distributions (K-1) Administration or the IRS. Federal tax laws prohibit refunds or
If you own units in a limited partnership during the year, you will reversals of prior-year — or properly applied — backup-withholding
receive a Schedule K-1 (Form 1065) directly from the partnership amounts. You must take this withholding as a credit when you file
you own. General partners have until March 17 to issue K-1s. If you your tax return for the applicable year. Please direct questions
do not receive your K-1 or have further questions about it, you regarding backup withholding to your financial advisor. If you are
must contact the partnership directly. While we track your original subject to “C-notice” backup withholding because IRS records
purchase and report it to you, the cost basis from your K-1 should show you have not reported all of your income, you can contact the
be used to calculate your gain or loss. You can refer to IRS Taxpayer Advocate Service at 1-877-777-4778
taxpackagesupport.com (Wells Fargo Clearing Services, LLC has (TTY/TTD: 1-800-829-4059) to discuss the matter and obtain a
provided this link for your convenience but does not control or “stop” letter.
endorse the website and is not responsible for the products,
IRS taxpayer assistance
services, content, links, privacy policy, or security policy of this
website.) for partnership contact information. For additional questions regarding how to complete your
For additional information, please refer to IRS Publication 541. tax return, please consult with your tax advisor or call the
IRS Taxpayer Assistance number at 1-800-829-1040.
Worthless securities
Wells Fargo Clearing Services, LLC cannot provide tax advice.
You should consult with your tax advisor about this reporting.
Generally, you must take this loss by the end of the first tax year
for which you determined the shares to be worthless and no Form
1099-B is required to do this. You should report a security as
worthless only if you are absolutely certain no more payments will
be received.
Our firms do not render legal or tax advice. While this information is not intended to replace your discussions with your tax advisor, it may help you to comprehend the tax implications of your
investments and plan efficiently going forward.
Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC (WFCS) and Wells Fargo Advisors Financial Network, LLC, Members SIPC, separate registered broker-dealers and
non-bank affiliates of Wells Fargo & Company. WellsTrade® and Intuitive Investor® accounts are offered through WFCS.
© 2014 – 2025 Wells Fargo Clearing Services, LLC. PM-04162026-6005229.2.1 IHA-7412035
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