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For Acorns Invest & Early accounts For Acorns Checking & Emergency Fund accounts |
You may owe taxes on money you make from your Acorns account, just like you would from any other income you earn. Generally, you can expect to owe taxes from your Acorns account when…
- You sell an investment for more than you bought it, making a profit
- You receive income from an investment (such as interest payments from bonds, or dividends from stocks)
- You make a withdrawal from your Later account
- You earn interest on your Checking or Emergency Fund accounts
- You earn referral bonuses or Earn Rewards
You don’t have to keep track of this information yourself for your Acorns accounts — we'll send you forms at tax time each year that detail all your investing and other activities from the previous calendar year.
Here's the full schedule for the different types of tax forms you may receive from Acorns this tax season, following the deadlines set by the IRS.
For Acorns Invest & Early Invest accounts
If you have Invest and/or Early Invest accounts, you may be taxed if:
- You received more than $10 in dividends in the previous year. 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 Early Invest accounts — here's how.
- You withdrew from your Acorns Invest or Early Invest account or sold some of your investments for more than $20 last year. When you sell an investment for a profit, we call that a capital gain, and it might be taxed by the IRS. To learn more about capital gains tax, check out Learn in your Acorns app.
- There were rebalances in one or more of your Acorns investing accounts. This rebalancing can happen if we adjust your portfolio to help keep your investment allocations on track with your long-term money goals. You can learn more about how we rebalance your investments for you here.
If any of these apply to you, you'll receive your 1099-DIV/B form by February 21, 2024. You can learn more about the 1099-DIV/B form here.
For Acorns Later accounts
If you're a Later investor and you made a withdrawal from your Later account last year, you may be taxed.
Your Acorns Later account is an IRA (individual retirement account). Withdrawing or transferring money out of an IRA could very likely have tax implications (the IRS has a few exceptions). Withdrawing funds early from your Later account could result in a penalty — generally an additional 10% tax, and there could possibly be income taxes and other penalties, too.
If this applies to you, we'll email you a 1099-R form that lists those withdrawals by February 1, 2024. You can learn more about the 1099-R form here.
For Acorns Checking & Emergency Fund accounts
If you have a Checking and/or Emergency Fund account that earns interest and you earned more than $10 in interest last year, you may be taxed.
Heads up that not all Acorns Checking and Emergency Fund accounts earn interest. If you're not sure if your account is earning interest, you can check the "Recent Activity" section of your Checking or Emergency Fund accounts to see if there are any monthly interest payments.
If you did earn more than $10 in interest last year, we'll email you a link to download your 1099-INT form by February 1, 2024. You can learn more about the 1099-INT form here.
For Referrals & Earn Rewards
Other income you earn from Acorns may be taxed, too. If you earned more than $600 in referral bonuses or through certain Acorns Earn offers, you'll receive a 1099-MISC form by January 31, 2024.
You can learn more about the 1099-MISC form here.
How will I get my tax forms from Acorns?
We'll email you a link to download your tax forms when they're ready. Here's the full schedule for the different types of tax forms you may receive from Acorns this tax season, following the deadlines set by the IRS.
You can also check for tax forms under Settings. You'll be able to download your forms digitally as PDFs — we won't send the forms through the mail.
You can also access your forms using our web app or mobile browser, even if you’ve closed your Acorns account. Please log in here and select "Tax Reports" from the “Statements” dropdown menu.
What do I do with the 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.
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