Hi,
In the past, all of our investments have either been in 401k retirement accounts, IRAs, or things like single stock holding ESOPs that were only taxed when cashed out.
My wife and I set up a non-retirement account with Schwab through my financial advisor last year.
We file married, jointly. I use H&R Block software.
For the first time in my life, I received a 1099-B from Schwab.
My package included:
1099-DIV
1099-INT
1099-B Summary of Fees and Expenses For the 1099-DIV Box 1a Total Ordinary Dividends (Includes amount shown in box 1b), $3636 Box 1b Qualified Dividends, $975 Box 2a Total Capital Gains Distributions, $3702 (15% Rate Gain) Box 3 Nondividend Distributions, $118 I?m using H& R Block software, and I?ve entered the numbers for this 1099- DIV. I had not considered that there would be any taxable dividends paid (since we did not receive a dividend check). So, I assume that rather than being paid, they were invested, and I always thought a reinvestment of dividends was not taxable, or is that only within an IRA/401(k). Yes, no? For the 1099-INT Box 1, $2, no problem For the 1099-B I?ve never seen one of these reports before, ?Proceeds from Broker Transactions?. This list is broken down into: Short term transactions for which basis is reported to the IRS-Report on Form 8949, Part I, with Box A checked Short term transactions for which basis is available but not reported to the IRS-Report on Form 8949, Part I, with Box B checked.
So, even though we did not receive any cash/checks for any of the trades shown on the 1099-B, am I right to assume that because this is in a non- retirement account, any trade, even if it stays within the account, must be reported on Form 8949?
I have pages and pages of these transactions, and I'm overwhelmed. Unless I can figure this out, next year may be the first year I have a professional do our taxes.
TIA