A 1099 tax form reports different kinds of income you earned in a year to the IRS, usually for payments that come from other sources than a typical employer. For example, a 1099 form might report earnings for independent contractors, any dividend or interest payments you earned, gambling winnings, and more.
There are different kinds of 1099 forms for these different scenarios. You may receive one or more of these 4 types of 1099 tax forms from us, depending on how you use Acorns.
How to read a 1099-DIV/B
The 1099-DIV/B form is a combination of two different tax forms that are often consolidated and sent to you as one form.
The 1099-DIV portion reports any dividends you received in the previous year, if you received more than $10.
Dividends are periodic payouts of earnings that some stocks and funds share with their investors — like a little bonus on top of regular returns. Acorns automatically reinvests these for you in your portfolio, but you may still be taxed on them.
You can check to see what dividends you received by visiting the “Recent Activity” section of your Acorns Invest and/or Early accounts.
The 1099-B portion lists any money you made or lost when you withdrew money from your Acorns Invest account.
There can be tax implications when you make a withdrawal. For example, you may owe tax when you sell investments at a profit (also called "capital gains") or you may incur a loss when you sell your investments (also called a "capital loss"). You can learn more about capital gains here.
If you made a withdrawal from your account in the previous year, check the “Summary of Proceeds, Gains & Losses, Adjustments and Withholding” section and the supplemental 1099-B pages for details you may need to include when filing your taxes.
You can learn more about the 1099-DIV/B form here.
How to read a 1099-R
The 1099-R form is a tax form that's used to report any money withdrawn from a retirement account — like your Later account — to the IRS. Taking money out of a retirement account is known as a "distribution."
If you're an Acorns Later investor and you took a distribution from your Later account last year, we'll email you a 1099-R form that reports it.
You can learn more about the 1099-R form here.
How to read a 1099-MISC
The 1099-MISC form is a tax form that's used to report miscellaneous "other income" you earned last year to the IRS. That usually means payments that come from other sources than a typical employer, like rents, prizes, or awards.
Your 1099-MISC lists any referral bonuses or Earn Rewards you earned that didn’t require you purchase something, if they exceed $600.
You can learn more about the 1099-MISC form here.
How to read a 1099-INT
The 1099-INT form is a tax form that's used to report any interest you earned last year to the IRS. Interest-paying accounts can include savings accounts, checking accounts, money market accounts, and more.
Your 1099-INT lists any interest payments you earned from your Mighty Oak Checking and/or Emergency Fund accounts, if you earned more than $10.
You can learn more about the 1099-INT form here.
What do I do with the 1099 form I received from Acorns?
If you received a form, you may need to let the IRS know about the money you earned the previous year through Acorns when you file your taxes.
Your tax situation is unique, you may want to talk to a tax professional or visit www.irs.gov to figure out what applies to you and what you may need to report.
Acorns doesn't provide tax advice, but if you have any questions or concerns about your account, please contact us.