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Help for your common tax questions

Here are answers to some questions we've received from clients recently, along with links to additional information and helpful resources.

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When will I get my Vanguard mutual fund or brokerage tax forms?

You can expect your forms starting in late January through the end of February. Please visit our tax-filing information page to learn when specific tax forms will be ready.

If you've added tax forms to your Vanguard e-service package, you won't receive paper copies. Instead, we'll send you an email as soon as the forms are available online in your secure Tax Center.

If you still receive paper copies of your tax forms by mail, you should get them shortly after they're posted online.

Notes about Form 1099-DIV and Form 1099-B

  • You won't see any dividend or capital gains distributions for your investment if the total amount for the year was less than $10, unless you had taxes withheld.
  • If you own Vanguard Real Estate Index Fund, you'll receive your Form 1099-DIV and Form 1099-B, if applicable, for this fund in February 2020 when the fund's return of capital is calculated.
  • If you own Vanguard Managed Allocation Fund, you'll receive your Form 1099-DIV and Form 1099-B, if applicable, for this fund in February 2020 when all income reallocations are completed.

What's the deadline for making an IRA contribution for the 2019 tax year?

Provided you meet the eligibility requirements and you're still under the annual contribution limit, the last day to open a new IRA or contribute to an existing IRA for the 2019 tax year is Wednesday, July 15, 2020.

When making your contribution, please indicate whether it's for the 2019 or 2020 tax year.

Compare IRA types and their tax benefits

Investing online?

Investing by mail?

Regular U.S. mail

Registered, certified, or overnight mail

Vanguard
P.O. Box 982901
El Paso, TX 79998-2901

Vanguard
5951 Luckett Court, Suite A1
El Paso, TX 79932-1882

How much can I contribute to my retirement account?

For the 2019 and 2020 tax years, the contribution limits for IRAs (both traditional and Roth) and employer-sponsored retirement plans are listed below. Note the higher limits for those age 50 and older.

2019 contribution limit

2020 contribution limit

Traditional and Roth IRAs

$6,000

$6,000

Traditional and Roth IRAs (age 50 and older)

$7,000

$7,000

401(k) and 403(b) plans

$19,000

$19,500

401(k) and 403(b) plans (age 50 and older)

$25,000

$26,000

Note: You can never contribute more than you've earned for the year.

Why am I receiving two 1099 tax forms?

If you upgraded to a Vanguard Brokerage Account in 2019, you may receive two sets of 2019 tax forms: one set in January (for your mutual fund accounts) and another set in February (for your brokerage account). You may need both to report your state and local tax liability.

With a few exceptions, in future tax years you'll likely receive one 1099 Consolidated Form for all of your mutual fund and brokerage holdings.

Will I get a tax form for my Vanguard Variable Annuity?

You'll receive a 2019 1099-R tax form if you took a withdrawal from your Vanguard Variable Annuity in 2019.

When will I receive my 2019 1099-R for my Vanguard Variable Annuity?

All Vanguard Variable Annuity tax forms will be mailed by January 31, 2020.

Can I see my tax form for my Vanguard Variable Annuity online?

No. Tax forms for the Vanguard Variable Annuity aren't available online.

Did my funds distribute capital gains in 2019?

Finalized year-end dividend and capital gains distributions for Vanguard funds are available by the end of 2019:

The interest income on municipal bonds is generally exempt from federal taxes and from state taxes in the state of issuance. Interest on certain private activity bonds may be subject to the alternative minimum tax (AMT).

Municipal bonds, when purchased at a discount, may subject investors to capital gains taxes when sold or redeemed. Consult a tax professional for additional information.

A certain percentage of dividend income from your stock mutual funds may qualify for a reduced rate. You can use our Qualified Dividend Income calculator to determine your personal QDI.

Note: In March 2020, some Vanguard funds may report "supplemental" income dividends or capital gains distributions for 2019. Because they're taxable for the year in which they're declared, any supplemental distributions made this year are taxable for the 2020 tax year and will be reported on the 2020 tax forms you'll receive next year. If this applies to you, you won't receive updated tax forms this year.

What are RMDs, and how do I schedule my distributions?

The CARES Act provides a temporary waiver of RMDs for 2020 including any delayed 2019 RMD (if the 2019 RMD wasn't taken before January 1, 2020). If you would have had an RMD obligation for 2020, you do not have to take your RMD for 2020 (or delayed 2019 RMD) if you don't want to.

If you have already taken a withdrawal in 2020 that would have been an RMD (had RMDs not been waived), you may be eligible to roll the money over. All or a portion of a distribution already taken in 2020 (that would have represented an RMD, had RMDs not been waived) may be rolled over back into an IRA by August 31, 2020. Rollovers of RMDs taken in 2020 don't count toward the IRA one-rollover-per-365-days rule.

New guidance permits RMDs taken in 2020 from inherited IRAs to be rolled back into the inherited IRA the distribution came from, by August 31, 2020.

For more information about the rollover rules, go to irs.gov or consult a tax advisor.

Once you reach a certain age (see next question), you're required to withdraw a minimum amount each year from your tax-deferred retirement accounts, including IRAs (with the exception of Roth accounts) and qualified employer-sponsored retirement accounts. (IRAs and defined contribution plans have some differences in required minimum distribution (RMD) timing requirements. For more details, check out the IRS's RMD comparison chart External site.)

Failure to take your RMD by the deadline may result in a hefty IRS penalty.

Once you reach your RMD age, Vanguard will automatically calculate your RMD for you each year for your tax-deferred IRAs and employer-sponsored retirement accounts held at Vanguard. However, you'll need to contact us to actually make the withdrawals.

To make the RMD process simpler, you can schedule automatic RMD withdrawals using our free service. If you don't need your RMD for living expenses, you can keep it working for you by immediately reinvesting it in an existing Vanguard nonretirement account.

At what age do I have to start taking RMDs?

If you reached age 70½ in 2019, you have until the market closes on April 1, 2020, to take your first RMD. For each subsequent year, you must take your RMD by December 31.

In 2020, the age increases to 72 as a result of new rules under the Setting Every Community Up for Retirement Enhancement (SECURE) Act. If you were born on or after July 1, 1949, you have until the market closes on April 1 the year after you turn 72 to take your first RMD. For each subsequent year, you must take your RMD by December 31.

How are Vanguard wire fees handled?

  • For mutual fund accounts, we assess the wire fee in addition to your redemption proceeds. That means you'll see a separate $10 redemption amount on your Form 1099-B, 1099-R, or 1099-Q. However, if you redeemed your entire fund balance, we reduced your redemption proceeds by the fee amount.
  • For brokerage accounts, we reduced your redemption proceeds by the fee amount.

Where are Section 199A dividends shown?

  • If applicable, you'll see Section 199A dividends from income paid by real estate investment trusts (REITs) and widely held fixed investment trusts (WHFITs) in Box 5 on your 1099-DIV.
  • Please consult a tax advisor to see if this applies to you. If you don't see any amounts reported in Box 5, the deduction may not be applicable to your holdings at this time. The IRS may issue additional guidance in the near future.

Why does my 1099-DIV show foreign taxes paid on a Vanguard mutual fund?

If your mutual fund has foreign investments and passed your portion of taxes paid to foreign countries, you'll see that value reported. Dividends are grossed up to show the foreign taxes paid. You can take the foreign taxes paid as a deduction or a credit on your taxes. A credit is generally the more beneficial option, but you should check with a qualified tax professional about your individual situation.

Why did I receive a 1099-MISC?

Vanguard may loan out shares of securities held in margin accounts to short sellers. If you own one of these securities in your margin account and the security pays a dividend while it's loaned out, Vanguard will pay you a substitute payment in lieu of the dividend. Substitute payments in lieu of dividends or interest are reported in Box 8 of Form 1099-MISC. Since these substitute payments are taxable at your marginal tax rate instead of the qualified dividend rate, Vanguard will also issue you a reimbursement grossed up to include income taxes you may incur. This reimbursement will be processed later in the year and reported in Box 3 of Form 1099-MISC.

Why are noncovered shares reported on my 1099-B?

If we have cost basis for your noncovered shares, we report it on your 1099-B but we don't report it to the IRS.

What should I do if I've forgotten my vanguard.com user name and password?

If you've forgotten your password, your user name, or both, you can go to our logon page and select Set up your user name and password. Once you verify your identity, you can create a new user name and password. You can then access your account using the updated user name and password.

Visit our Security Center »