Which Form Should I Use?

Scottrade will provide you with the appropriate tax forms for your account based on your account type and activity for the year. You can find these forms by hovering over My Account, then clicking Tax Statements under the Statements & History heading.

It's important to understand the purpose of each form in order to help you prepare your taxes completely and correctly. If you have questions about the forms that are generated in your account, please contact your local Scottrade® team. Remember, Scottrade brokers are not tax advisors.

For information about tax-exempt accounts that will not receive forms from Scottrade, please visit Tax Form Generation.

Form 1099 Composite

Form 1099 Composite is for brokerage accounts (Individual, Joint, Trusts and S-Corporations). It includes Form 1099-DIV (Dividends & Distributions), 1099-INT (Interest Income), 1099-MISC (Miscellaneous Income) and 1099-B (Proceeds from Broker & Barter Exchange Transactions).

A 1099 will be generated if there is an IRS reportable transaction in the account. Forms 1099-DIV and 1099-INT will only be generated if the accumulated income is equal to or greater than $10.

Examples of 1099 Composite reportable transactions include:

Dividends
Interest
Original issue discount (OID)
Sell transactions
Bond redemptions
Tenders, mergers
Principal payments
Royalty trust withholdings
Foreign taxes paid
Non-taxable dividends
Non-taxable interest (example: municipal bonds)

Note: Reallocation of income can result in a 1099 Composite correction. A 1099 will not be generated if there are only non-reportable transactions in the account.

Examples of 1099 transactions that would not generate a 1099 include:

Buy transactions
Margin interest charged
Master Limited Partnership distributions

Click here for 1099 mailing dates

Form 1099-R

Form 1099-R (Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.) is for Traditional and Roth IRA accounts. A 1099-R will only be generated if there is an IRS reportable transaction in the account.

Examples of 1099-R reportable transactions include:

Distributions
Conversions
Direct Rollovers
Withholdings
Excesses

Examples of 1099-R non-reportable transactions include:

Buy or sell transactions
Dividends
Interest (example: municipal bonds)
Margin interest charged
Master Limited Partnership distributions

Note: A corrected Form 1099-R will only be generated if you have contacted your local branch with a correction request.

Click here for 1099-R mailing dates

Form 1099-Q

Form 1099-Q (Coverdell ESA Distribution Information) is for Coverdell ESA accounts. A 1099-Q will only be generated if there is an IRS reportable transaction in a Coverdell ESA account.

Examples of IRS reportable transactions for Form 1099-Q include:

Distributions
Excesses
Outgoing Transfers

Examples of 1099-Q non-reportable transactions include:

Buy or sell transactions
Dividends
Interest (example: municipal bonds)
Margin interest charged
Master Limited Partnership distributions

Click here for 1099-Q mailing dates

Form 5498

Form 5498 (IRA Contribution Information) is for Traditional and Roth IRA accounts. A 5498 will be generated if there was an IRS reportable transaction in the Traditional or Roth IRA account. Please refer to your year-end statement for your fair market value (FMV).

Examples of IRS reportable transactions for Form 5498 include:

Regular Contributions
Rollover Contributions
Conversions or Recharacterizations

Examples of Form 5498 non-reportable transactions include:

Buy or sell transactions
Option transactions (buys or sells)
Dividends
Interest (example: municipal bonds)
Margin interest charged
Master Limited Partnership distributions

Click here for 5498 mailing dates

Form 5498-ESA

Form 5498-ESA (Coverdell ESA Contribution Information) is for Coverdell ESA accounts. A 5498-ESA will only be generated if there is an IRS reportable transaction in a Coverdell ESA account.

Examples of IRS reportable transactions for Form 5498-ESA include:

Contributions
Rollovers
Incoming Transfers

Note: A corrected Form 5498 or a corrected Form 5498-ESA will only be generated if you have contacted your local branch with a correction request and you have received verbal communication that a correction to your Form 5498 or Form 5498-ESA will be made.

Click here for 5498ESA mailing dates

Form 1042-S

Form 1042-S (Foreign Person's U.S. Source Income Subject to Withholding) is for foreign held accounts. A 1042-S will only be generated if there is an IRS reportable transaction in the foreign held account.

Examples of IRS reportable transactions for 1042-S include:

Dividends
Interest
Royalty trust income

Examples of Form 1042-S non-reportable transactions include:

Buy transactions
Sell transactions
Option transactions (buys or sells)
Non-taxable dividends
Non-taxable interest (example: municipal bonds)
Margin interest charged
Bond redemption
Tenders, mergers
Principal paid on unit trust or corporate bonds

Click here for 1042-S mailing dates

Taxable transactions are reported under the primary account holder's Social Security number. Dividends, interest and proceeds from broker transactions are reported to the IRS.

Scottrade does not provide tax advice. The material provided in this article is for informational purposes only and Scottrade is not responsible for any errors or omissions. Please consult your tax or legal advisor(s) for questions concerning your personal tax or financial situation.