Review the tax information sent with your forms (PDFs below).
- Form 1099-DIV; Determine Any State Tax-Exempt Income; Foreign Tax Credit
Learn about Form 1099-DIV, how to determine any state tax-exempt income and where to find additional online tax resources. Also includes information about claiming foreign tax credit.
- Form 1099-INT; Tax-Exempt Income by State; Utah State Tax Exemptions
Learn about Form 1099-INT, and find information about tax-exempt income by state. Also includes information to help Utah taxpayers determine state tax-exempt status on income.
- Know Your Giftrust® Tax Filing Requirements
Explains tax filing requirements and cost basis.
- What are my options if I have an excess contribution to my IRA?
- I am invested in the Real Estate and/or Global Real Estate fund. When will I receive my 1099-DIV and 1099-B tax forms?
- Why did I not receive a tax form?
- What if I did not have a taxable event? Will you send me a tax form indicating zero?
- Did my fund pay a distribution?
- Where can I find fund specific tax information?
- I have/had a Giftrust account. What tax information do I need to know?
- When will my annual account statement arrive?
- When will my tax forms arrive?
- When will my IRA contributions appear on Form 5498?
- What if I need my tax form corrected?
- How are dividends and capital gains taxed?
- View IRA Contribution Summary Online
- Traditional IRA and Roth IRA Contribution Limits
- SIMPLE IRA Contribution Limits
- SARSEP IRA Contribution Limits
- Contribution Deadlines
- How do I determine the cost basis on the shares I sold?
- Why are my dividends and short-term capital gains reported in the same column?
- How do I report the fees that are on my Form 1099-B?
- How does American Century report foreign taxes?
- Am I eligible for a foreign tax credit for my international fund?
- Deposit Your Tax Refund
- What are distributions?
- Why do funds pay distributions?
- Why doesn't my Wash Sale appear on my tax form?
- How do I report cost basis for my Heritage account that was combined with Vista?
You have some options available if you have contributed more than the maximum allowed for the tax year. These include applying the amount to the following tax year (if applicable) or removing the excess amount.
If you've contributed to a Roth beyond the eligibility requirements for your income, you may also be able to recharacterize your contributions. We recommend that you work with your tax advisor to determine which option is best for you because they can involve tax penalties. For more specific details, please see information about Excess Contributions in the Disclosure Statement and Custodial Agreement booklet, or visit www.irs.gov.
If you are invested in the Real Estate and/or Global Real Estate fund in a taxable account, we will send Forms 1099-DIV and 1099-B in late February. Learn more about the postponed mail date. If you own these funds in a retirement account and sold shares, we will send Form 1099-R by the end of January the following year.
Whether you receive a tax form depends on the type and amount of activity on your fund/account each year. Generally, we send a form in January when you sell or exchange shares or if your fund paid a distribution.
However, we do not send a form if:
- the amount of your redemption is less than one share and the gross proceeds are less than $20 (applies to Form 1099-B) or
- the dividends for your fund is under $10 (applies to form 1099-DIV).
Due to IRS regulations, we cannot send you a tax form indicating zero or showing no activity.
You can find historical distribution information for all funds under the Fund Performance tab.
Before your Giftrust matures, you do not have to file any of the tax returns for your Giftrust. This is taken care of by the Giftrust trustee. After your Giftrust matures, you will be personally responsible for the necessary tax reporting and payment of taxes due on distributions or capital gains. Learn more.
Look for your year-end statement to arrive during the first two weeks of January.
Learn more by visiting A Review of the Forms You May Receive
Form 5498, which is sent in May, reports your IRA contributions. Depending on the timing and account type, your transactions may appear on the form for the current tax year or the next year.
- Traditional and Roth IRA Contributions
Any contribution made for 2014--even if it's made in 2015 before the April 15th deadline-will appear on the 2014 form.
- Rollover Contributions and Roth IRA Conversions
Only transactions made during 2014 will appear on the 2014 form. Transactions made after January 1, 2015, will appear on next year's form.
- Recharacterized Contributions
Only 2014 contributions recharacterized during 2014 will appear on the 2014 form, although you may recharacterize these contributions until October 15, 2015. Contributions recharacterized after January 1, 2015, will appear on next year's form.
- SEP IRA, SARSEP IRA and SIMPLE IRA Contributions
Only contributions made during 2014 will appear on the 2014 form. Contributions made after January 1, 2015, for tax year 2014 will appear on next year's form.
If you determine that a correction needs to be made, contact us and we can provide a corrected form. If you receive a correction to:
- Form 1099-DIV, 1099-B, 1099-INT, 1099-Q, 5498-ESA or 5498, your corrected form will include all previously reported tax information. You may discard the original form.
- Form 1099-R or 1042-S, your corrected form will show only the corrected information. You must retain both the original form and the corrected form.
Your Form 1099-DIV will show your total, qualified dividends and capital gains. The amount of tax you pay depends on the type of distribution and your tax bracket.
|Ordinary Dividends* and
Short-Term Capital Gains
|Shown in column 1a of your 1099-DIV||Taxed at the same rate as ordinary income|
|Qualified Dividends||Shown in column 1b of your 1099-DIV||Taxed at 0% or 15% depending on your tax bracket|
|Long-Term Capital Gains*||Shown in column 2a of your 1099-DIV||Taxed at 0% or 15% depending on your tax bracket|
|Unrecaptured Section 1250 Gains||Shown in column 2b of your 1099-DIV||Taxed at 25%|
IRA contribution summary information can be found online on your annual statement. Simply take the following steps:
- Log In with your User Name and Password
- Select the Statements and Tax Forms link in the margin
- Select the PDF STATEMENT link for December 31
Refer to Traditional IRA and Roth IRA Contribution Limits for more information.
Refer to SIMPLE IRA Contribution Limits for more information.
For Tax Year 2015:
- Employee's Salary Deferral Limit: $18,000
- Contribution Limit for Investors Age 50 or Over (includes Catch-Up): $24,000
The Pension Protection Act of 2006 makes permanent higher contribution limits for IRAs and employer-sponsored retirement plans. The limits have been in effect since 2001.
If you are at least 50 years old before the end of the year, you are allowed to make additional "Catch-Up" contributions as you approach retirement.
Please refer to IRS Publication 560 and 590 for more information about IRA contribution deadlines and limits.
- Traditional and Roth IRA contributions
2014 contributions can be made until April 15, 2015. Contributions made after January 1, 2015, are credited for 2014 only if you request it.
- SEP, SARSEP and SIMPLE IRA contributions
2014 employer contributions can be made until the employer's 2014 tax-filing deadline (including any extensions). Contributions received after January 1, 2015, will appear on your Form 5498 for 2015, which will be sent in 2016.
Please review What the Changes to Cost Basis Mean to You.
The Securities and Exchange Commission requires mutual funds to pay and report short-term capital gains and ordinary dividends separately. However, the IRS requires mutual funds to report short-term capital gains and dividends together on Form 1099-DIV because they are taxed as ordinary income. Long-term capital gains are reported separately because they are taxed at lower rates.
The fee (e.g. maintenance, wire or advisor fee) is a redemption that is treated as a sale of capital assets and reportable on Form 8949. When the fee is taken, we will deplete shares from your account based on the cost basis method on file for the account, and adjust the cost basis for the tax lot used for the redemption.
Please note: If the shares sold for the fee are less than one full share and the gross proceeds for the fee is less than $20, we will not report on Form 1099-B. However, you may still be required to report the sale on Form 8949. Please consult your tax advisor, or refer to IRS Publication 550 for the proper reporting of fees and other expenses.
The foreign tax reported in column 6 on Form1099-DIV is based on your share of the foreign taxes paid at the mutual fund level, which is also included in the total ordinary dividends in column 1a. The foreign taxes paid are based on the income the mutual fund received from its investments in foreign corporations and the taxes the fund paid to foreign governments. The annual report for the fund provides additional information regarding the calculation of the foreign tax.
If you have met the holding period requirement, 100% of the foreign tax credit reported in column 6 on Form 1099-DIV is eligible to be claimed as a foreign tax credit this year.
Holding period requirement - At the time of the distribution, you must have held the shares for 16 days or more during the 31-day period. The 31-day period begins 15 days before the shares ex-dividend date. If you are unable to use the foreign tax credit, you may be able to claim it as an itemized deduction.
Where to report the credit - For U.S. individuals with:
- No more than $300 ($600 for married individuals filing jointly) of foreign tax and no foreign source income, other than passive income (e.g., mutual fund dividends), you may claim the credit directly on Form 1040.
- More than $300 ($600 for married individuals filing jointly) of foreign tax or who have foreign source income, other than passive income, you will need to complete Form 1116 to claim the credit. (For additional information, see Form 1116 instructions.)
Additional information can also be found in Publication 514, Foreign Tax Credit for Individuals.
A fast and simple way to get your IRS refund working for you is to have it deposited directly into your existing American Century Investments account. Simply complete the "Refund" section of your IRS tax return as follows:
- Routing Number: 101000019
- Type: Checking
- Account Number: 9996XXXXXXXXXXXX (Replace Xs with your 12-digit fund account number without the hyphen, leave remaining boxes empty)
Please do not send a voided American Century Investments CheckWriting check to the IRS as a record of your account number.
Tax Refund Deposits to Your IRA
If you are planning to invest your refund in your existing IRA, please be sure to:
- Stay within your annual contribution limit. (Review Traditional IRA and Roth IRA Contribution Limits)
- Keep the contribution deadline in mind. If the deposit is to be applied for the 2014 tax year, it must be received by the IRA contribution deadline (generally April 15). You should contact us prior to filing your tax return and indicate that the money is for the prior tax year. We will apply the deposit as a current year contribution if no instructions are received.
There are two types of distributions: income and capital gains. Mutual fund companies must pass along 98% of the net amount of both types of distributions to their shareholders.
- You will receive income distributions if the securities in your fund pay dividends or interest.
- You will receive capital gain distributions if the sale of securities within your mutual fund creates a profit. These gains will be designated as short- or long-term based on how long the securities were held in the portfolio, not on when you purchased fund shares.
Note: Fund share prices drop by the amount of the dividend/capital gain when a fund pays its distribution.
Tax rules require mutual funds to distribute 98% of net investment income and capital gains to shareholders each year. The rules also allow mutual funds to offset capital gains with losses carried forward from a prior year.
If you've sold shares at a loss and repurchased substantially similar shares within 30 days and do not see a wash sale on your tax form, it may be due to one of the following reasons:
- You have sold non-covered shares at a loss, and purchased covered shares within 30 days before or after the sale. (Refer to When You Purchased Shares Matters in What the Changes to Cost Basis Mean to You)
- You have sold shares at a loss and purchased shares in the same fund with another broker within 30 days before or after the sale.
- You have sold shares from a taxable account at a loss and contributed to an IRA in the same fund within 30 days before or after the sale from the taxable account.
Generally, you should report the wash sale on your Form 8949 in column G. For more information, refer to IRS Publication 550 or the instructions for Form 8949.
Clients who held the Vista Fund on December 6, 2013, when the fund combined with the Heritage Fund, may need additional information to complete their cost basis. Please use the following information to determine cost basis for those accounts.
- When the Vista Fund/Heritage Fund combination occurred, the underlying tax lots from the Vista Fund were moved into the Heritage Fund.
- When the tax lots are moved, most of the cost basis information remains the same including: cost basis amount, date of acquisition, covered/non-covered shares, etc.
- However, the number of shares and cost per share in each tax lot will change.
On December 6, 2013 (the day of the combination), the Vista Fund’s NAV was $21.41 and the Heritage Fund’s NAV was $24.83.
John Smith owns a total of 54.249 shares of the Vista Fund and his account balance as-of 12/6/2013 was $1,161.47 (54.249 shares X $21.41).
His balance of $1,161.47 bought him 46.777 shares in the Heritage Fund ($1,161.47 / $24.83).
To account for the difference in shares purchased into the Heritage Fund vs. the number of shares redeemed from the Vista Fund, a Combination Ratio needs to be calculated.
46.777 shares / 54.249 shares =0.8623 (for every share redeemed from the Vista Fund, 0.8623 shares are acquired in the Heritage Fund).
John Smith purchased $7.77 into his Vista Fund on 12/14/2010. Cost per share was $13.95, and he acquired 0.557 shares at that time ($7.77 / $13.95 = 0.557 shares).
When this transaction is moved over to the Heritage Fund, the number of shares will be multiplied by the Combination Ratio (0.557 shares X0.8623= 0.480 shares). The original purchase amount is still the same $7.77. To determine the cost per share: $7.77 / 0.501 shares = $16.1875
The trade date will remain the same (12/14/2010 in this example), only the cost per share ($16.1875 instead of $13.95) and number of shares (0.480 instead of 0.557) changed when each transaction from the Vista Fund moved to the Heritage Fund.
This information is for educational purposes only and is not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.