Your tax statement has two parts:
- Tax Reporting Statement — The information we report to the IRS on Forms 1099-DIV, 1099-INT, and 1099-B. Fidelity incorporates these separate, stand-alone forms on one consolidated statement. The titles, headers, and box numbers used on our consolidated statement correspond to those used on the individual, stand-alone IRS forms.
- Supplemental Information — Additional information (not reported to the IRS) that you may find helpful in preparing your income tax returns, including some transaction activity details
The two parts of your tax statement are illustrated and explained in more detail below. Sample statements shown are for illustrative purposes only. Certain categories of transactions may not pertain to your account.
Tax Reporting Statement
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1099-DIV—Dividends and Distributions
Lists all taxable and nondividend distributions from mutual funds held in your account. The dividends and capital gain distributions, shown on Form 1099-DIV, must be reported on your 2011 federal income tax return regardless of whether they were paid in cash or reinvested. If an Unrecaptured Section 1250 gain, Section 1202 gain, or Collectibles (28%) gain was distributed, line 2b, 2c, and/or 2d will appear, respectively, on Form 1099–DIV.
Any federal income tax withheld on dividends and distributions you received in your account is reported, fund by fund, in column 4, labeled "Federal Income Tax Withheld."
If your fund paid foreign tax, we report the amount that you may be able to claim as a deduction or credit in column 6. We add the foreign tax paid to the dividend amount you received and report the total in column 1a and, if applicable, column 1b. For this reason, the total dividends reported on the form may be higher than the amount that you actually received. For additional 2011 foreign tax credit pass–through information, in early February you will be able to see the Important Information for Individuals about Foreign Tax Paid letter on the Fidelity Fund–Specific Tax Information page of the Tax Center of Fidelity.com.
- 1099–INT—Interest Income
Lists all exempt interest dividends from mutual funds held in your account and the portion (if any) of those dividends that may be subject to federal alternative minimum tax (AMT). Exempt interest dividends generally are not subject to federal income tax, but you are still required to report these dividends on your federal income tax return. The exempt interest dividends you received are reported, fund by fund, in column 8, labeled "Tax Exempt Interest" on Form 1099-INT. You are required to add these amounts to any other 2011 federal tax-exempt interest (including any federal tax-exempt original issue discount interest) you have earned, and report the total on line 8b of Form 1040 or Form 1040-A. For state tax-exempt information for Fidelity federal tax-exempt funds, in early January you will be able to see the Percentage of State Tax-Exempt Income letter on the Fidelity Fund-Specific Tax Information page. If you received tax-exempt interest from one or more of those funds, we will insert this letter with your tax statement.
If you are subject to the AMT, you are required to report on your federal income tax return the amount of your tax-exempt interest that is subject to the AMT. The portion of the exempt interest dividends you received from mutual funds held in your account that is subject to the AMT is reported, fund by fund, in column 9, labeled “Specified Private Activity Bond Interest“ on Form 1099-INT. For more information, see the IRS Instructions for Form 6251, Alternative Minimum Tax-Individuals. In addition to federal reporting, Fidelity may be required to report all or a portion of your total exempt income to California or to other state tax authorities.
Column 10 shows CUSIP numbers, fund by fund, for tax-exempt Fidelity Funds on which tax-exempt interest was paid to you during the calendar year and reported in column 8.
Any federal income tax withheld on exempt interest dividends you received in your account is reported, fund by fund, in column 4, labeled “Federal Income Tax Withheld” on Form 1099-INT.
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1099-B—Proceeds from Broker and Barter Exchange Transactions
In comparison with prior years, the IRS has added several new boxes to Form 1099-B. However, as we noted earlier in this guide, most of the new IRS cost basis reporting requirements will only begin to apply to Fidelity Mutual Funds for tax year 2012. You can find more information about securities covered by the new cost basis reporting rules in the introductory portion of this guide. As a result, the 2011 Form 1099-B on your statement incorporates some new box numbers and accounts for other new boxes with a message under your data, labeled Form 1099-B, "Box 6." Form 1099-B lists all proceeds from the sale of Fidelity mutual funds held in your account. We report all transactions on a trade–date basis, as required by the IRS, and we report the proceeds as gross proceeds. To complete your federal income tax return, you will be required to provide the cost basis for the shares sold in order to determine the associated realized gain or loss. Similar to the rules governing the tax treatment of long-term capital gains distributions, the lower tax rates (15% or, for those taxpayers in the two lowest tax brackets, 0%) apply to any long-term capital gains realized on the sale of mutual fund shares.
In general customers must report the information on Form 1099-B by completing Form 1040, Schedule D, including the new Form 8949. Helpful Hints for Completing Your Form 1040, Schedule D may assist you in tax return preparation.
Although the information is not reported to the IRS, Fidelity provides estimated cost basis, realized gain and loss, and holding period information in the Supplemental Information section of your tax statement.* However, due to changes in IRS regulations, our reporting requirements will gradually change over the next two years.
* Fidelity will report gross proceeds as well as certain cost basis and holding period information to you and to the IRS on your annual Form 1099-B as required or allowed by law, but such information may not reflect adjustments required for your tax reporting purposes. Taxpayers should verify such information when calculating reportable gain or loss. Fidelity specifically disclaims any liability arising out of a customer's use of, or any tax position taken in reliance upon, such information. Unless otherwise specified, Fidelity determines cost basis at the time of sale based on the average cost method for open-end mutual funds and based on the first-in, first-out (FIFO) method for all other securities. Consult your tax advisor for further information.
Supplemental Information
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State/Local Tax–Exempt Income from Fidelity Funds
This section reports the amount of exempt interest dividends you received from Fidelity state-specific tax-exempt funds that may be exempt from state and/or local income taxes, and the amount that may be taxable. For state tax–exempt information for Fidelity federal tax–exempt funds, in early January you will be able to see the Percentage of State Tax–Exempt Income letter on the Fidelity Fund–Specific Tax Information page. If you received tax-exempt interest from one or more of those funds, we will insert this letter with your tax statement.
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Short–Term Realized Gain/Loss
Due to new IRS cost basis reporting regulations based on the Emergency Economic Stabilization Act of 2008, certain aspects of Fidelity's cost basis reporting will change, beginning in 2011. See the introductory portion of this guide for further information.
The Short-Term Realized Gain/Loss section lists estimated cost–basis information* and short–term gain or loss from the sale or exchange of mutual funds in your account. This information may be helpful when completing Form 1040, Schedule D, including the new Form 8949. If this section appears on your report, refer to Helpful Hints for Completing Your Form 1040, Schedule D for more information.
* Fidelity will report gross proceeds as well as certain cost basis and holding period information to you and to the IRS on your annual Form 1099-B as required or allowed by law, but such information may not reflect adjustments required for your tax reporting purposes. Taxpayers should verify such information when calculating reportable gain or loss. Fidelity specifically disclaims any liability arising out of a customer's use of, or any tax position taken in reliance upon, such information. Unless otherwise specified, Fidelity determines cost basis at the time of sale based on the average cost method for open-end mutual funds and based on the first-in, first-out (FIFO) method for all other securities. Consult your tax advisor for further information.
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Long–Term Realized Gain/Loss
Due to new IRS cost basis reporting regulations based on the Emergency Economic Stabilization Act of 2008, certain aspects of Fidelity's cost basis reporting will change, beginning in 2011. See the introductory portion of this guide for further information.
The Long-Term Realized Gain/Loss section lists estimated cost–basis information* and long–term gain or loss from the sale of mutual funds in your account. This information may be helpful when completing Form 1040, Schedule D, including the new Form 8949. If this section appears on your report, refer to Helpful Hints for Completing Your Form 1040, Schedule D for more information.
* Fidelity will report gross proceeds as well as certain cost basis and holding period information to you and to the IRS on your annual Form 1099-B as required or allowed by law, but such information may not reflect adjustments required for your tax reporting purposes. Taxpayers should verify such information when calculating reportable gain or loss. Fidelity specifically disclaims any liability arising out of a customer's use of, or any tax position taken in reliance upon, such information. Unless otherwise specified, Fidelity determines cost basis at the time of sale based on the average cost method for open-end mutual funds and based on the first-in, first-out (FIFO) method for all other securities. Consult your tax advisor for further information.
