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Review the tax information sent with your forms (PDFs below).
** If you downloaded the 2017 U.S. Government Obligations flyer before January 31, 2018, please discard that information. The information has been updated as of February 1, 2018.
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.
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 will not send Form 1099-DIV if you have dividends and capital gains totaling under $10 for any one fund (exception: funds passing a foreign tax credit). Also, we will not send Form 1099-B if your redemption is less than one share and the gross proceeds are less than $20 for any one redemption (does not apply to brokerage). Although the IRS does not require us to report activity under these amounts, you may be required to report this information on your tax return.
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.
Due to IRS regulations, we cannot send you a tax form indicating zero or showing no activity.
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:
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:
Additional information can also be found in Publication 514, Foreign Tax Credit for Individuals.
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:
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.
If you are invested in the Real Estate Fund 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.
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.
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.
Find information such as U.S. Government Obligations **, Qualified Dividends and Alternative Minimum Tax (AMT) in our Tax Center.
Can I deposit My Tax Refund directly into my American Century Investments' account?
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:
Please do not send a voided American Century Investments CheckWriting check to the IRS as a record of your account number.
Review distributions information for all funds.
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.
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.
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*
Long-Term Capital Gains*
Unrecaptured Section 1250 Gains
* Short-term capital gains are assets held fewer than 12 months. Long-term capital gains are assets held more than 12 months.
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 drop in share price is due to recent distributions. Investors will not experience a loss from a distribution. This is because per-share amount of a distribution is deducted from a fund's net asset value (NAV). Fund prices will reflect a NAV reduction when a distribution is paid. Unless you set the distribution into your core account, distributions are reinvested and the number of shares in the account will increase. This leaves the total value of the account unaffected by the distribution, and reinvestment of distributions will be reflected the following business day.
Please review What the Changes to Cost Basis Mean to You
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.
Clients in certain IRAs and retirement accounts are required to withdrawal a minimum amount each year, generally starting at age 70½. Learn more.
IRA contribution summary information can be found online on your annual statement. Simply take the following steps:
Refer to Traditional IRA and Roth IRA Contribution Limits for more information.
Refer to SIMPLE IRA Contribution Limits for more information.
For Tax Year 2019:
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.
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 .
IRS Circular 230 Disclosure: American Century Companies, Inc. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with American Century Companies, Inc. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.
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.