Tax filing FAQ
Important notes about your tax statements:
- Tax statement mailing dates vary slightly depending on the types of accounts and investments you own1, 2.
- For jointly-owned accounts (and those owned by a trust or a corporation), tax statements are sent only to, or viewable online only by, the designated taxpayer on the account.
- We recommend waiting to file your tax returns until each taxpayer in your household (or group) receives tax statements for all accounts with reportable activity in 2017.
- Copies of most tax statements will be available on the secure site on ameriprise.com as they are mailed. Register or log in. Some RiverSource® annuity tax statements are only available on riversource.com. Log in.
- The IRS filing deadline for 2017 individual tax returns is delayed until April 17, 2018 due to a legal holiday3.
General tax statement and mailing questions
- Jan. 31, 2018 - Tax statements for annuities, nonqualified Ameriprise® certificates, life insurance policies, IRAs and other retirement accounts, 529 Plans, and Coverdell Educations Savings Accounts (CESA).
- Feb. 1, 2018 – Tax statements for nonqualified mutual fund and brokerage accounts for clients and qualifying household members who have indicated their occupation includes them under the Farmer / Fisherman / Rancher IRS estimated tax provision.
- Feb. 15, 20184 - Tax statements for Ameriprise brokerage accounts, Managed Accounts investments and Columbia mutual funds.
Your household may receive more than one year-end tax package from Ameriprise Financial if:
- You own various types of investments that have different IRS mailing deadlines.
- See the previous question and tax statements mailing dates for more information.
- There is more than one taxpayer in your household.
- Each account has one designated taxpayer and one associated taxpayer ID, including accounts that are owned jointly, by a trust, by a corporation, etc.
- The IRS requires that we send tax statements to each taxpayer separately.
- If you need to verify who the taxpayer is on an account, contact your Ameriprise financial advisor or a client service representative at 800.862.7919.
- Your accounts with reportable activity in 2017 have different mailing addresses or different financial advisors assigned.
- You own a Custodial IRA plan which has investments in mutual funds, certificates and/or brokerage accounts. Note that Custodial IRA plans receive one aggregate tax statement for all the accounts in the plan.
For more information, see questions:
When will my tax statements be mailed?
Will I receive more than one year-end tax statement package?
I own a Columbia mutual fund. Why does my tax reporting look different than in past years?
Why don’t I see tax statements for all of my IRA accounts?
Copies of many of your tax statements are available on the secure site on ameriprise.com. However, some RiverSource® annuity tax statements are only available on riversource.com.
To view your tax statements online you must be:
- At least 18 years old
- The taxpayer on the account
- Registered for the secure site on ameriprise.com
For more information see Online tax information FAQ.
You can get a copy of your tax statement online. See the previous question for more information.
Please allow 10 calendar days following the tax statement mailing deadline for your statements to arrive by mail prior to contacting your advisor or the Service Center for a duplicate statement. See contact information below.
Any owner or any person who is authorized to transact business for the account can request to have duplicate tax statements mailed to the address of record. For minors, the account custodian must make the request.
Note: Duplicate copies will be mailed to your address of record. Tax statements can’t be sent by fax or email.
Only the last four digits of a Taxpayer Identification Number (TIN), which may be a Social Security Number (SSN), Individual Taxpayer Identification (ITIN), Adoption Taxpayer Identification Number (ATIN), or Employer Identification Number (EIN), will be shown on tax statements for security purposes. The preceding numbers will be replaced with X.
For example, SSN 123-45-6789 will be shown on the tax statement as the Recipient’s ID No. XXX-XX-6789. Truncating the TIN may assist in protecting you from identity theft. Although the number will be truncated on your tax statement, we will still report the full TIN to the IRS as required.
The financial statement and the tax statement each have a different purpose, so you may notice different levels of detail in each statement. The Ameriprise annual financial statement reflects your account at a single point in time, which is the last business day of the year. Alternately, the Ameriprise tax statement provides information across the span of a tax year that may be taken into consideration when preparing tax returns. For instance:
- When December 31 falls on a weekend, the value of fixed interest investments:
- The financial statement will list the value of investments as of the last business day of the year
- The tax statement will list the value of investments including interest through Dec. 31
- When an investment has an income reclassification, the tax designation of income may change after year-end. This occurs more commonly with mutual funds, unit investment trusts (UITs) and real estate investment trusts (REITs)
- The financial statement will capture the information available at year-end
- The tax statement will be updated and mailed when the investment issuers notify us of changes
- When a mutual fund has spillover dividends, for dividends that are declared in the fourth quarter of the year and payable the following January
- The financial statement captures the information available at year-end
- The tax statement will report dividends the year they are declared and report any updates after year-end
- When there is a sale transaction
- The financial statement will display the activity by settlement date
- The tax statement will list the activity and report to you and the IRS by trade date, per tax law requirements
- When there is cost basis information to report
- The financial statement may not reflect all the adjustments needed for tax reporting purposes
- The tax statement will report cost basis, holding period and gain/loss information for covered⁵ investments on the statement and to the IRS per mandatory cost basis reporting regulations. The cost basis for noncovered investments may be provided on the statement, if available, but will not reported to the IRS. See Cost basis reporting FAQ for more information on covered investments.
Nonqualified tax reporting
Nonqualified accounts do not receive preferential tax treatment from the IRS and their earnings do not grow tax-deferred like an IRA or education savings plan (529 or Coverdell). We generally issue 1099 tax statements for nonqualified accounts to U.S. clients (and 1042-S tax statements to nonresident alien clients) such as:
- Form 1099-B (Proceeds From Broker and Barter Exchange Transactions)
- Form 1099-DIV (Dividends and Distributions)
- Form 1099-INT (Interest Income)
- Form 1099-MISC (Miscellaneous Income)
- Form 1099-OID (Original Issue Discount)
- Certain Forms 1099-R, (Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.), for distributions from nonqualified annuity contracts and insurance policies (Also issued for IRAs and qualified plans. See “Qualified tax reporting” section below.)
- Form 1042-S (Foreign Person’s U.S. Source Income Subject to Withholding)
A 3.8% Net Investment Income Tax (under Internal Revenue Code section 1411, as part of the Affordable Care Act enacted in 2010) is imposed on certain unearned income of high-income individuals, estates and certain trusts.
- This tax is separate tax and independent from regular federal income tax or Alternative Minimum Tax.
- For example, nonqualified annuity distributions from both deferred and annuitized contracts are potentially subject to the 3.8% tax, depending on Modified Adjusted Gross Income and investment income.
- This tax applies only to individual and joint filers who exceed certain income thresholds. For more information, see Calculating and reporting 3.8% Net Investment Income Tax and visit Questions and Answers on the Net Investment Income Tax on the IRS website.
Form 1099-R is issued for reportable distributions like distributions of taxable earnings and 1035 exchanges. However, a Form 1099-R would not be issued if a distribution from a nonqualified annuity or an insurance policy was entirely return-of-premium with no taxable earnings and considered non-reportable.
The IRS requires us to report a 1035 exchange (to indicate the transfer of nonqualified annuity or insurance accounts between companies) even when it is not taxable. Your Form 1099-R reports:
- Line 2a, Taxable amount: $0.00
- Line 5, Employee contributions/Designated Roth contributions or insurance premiums (includes "insurance premiums", which is the investment in the contract information provided to the receiving company)
- Line 7, Distribution code(s): distribution code 6
Note: If you received any value at the time of the exchange, such as a loan cancellation or a check sent to you, the amount you received is taxable up to the earnings in the account. Any taxable distribution or deemed distribution, like this, is reported on a separate Form 1099-R.
Other types of 1035 exchanges include: life insurance exchanged to nonqualified annuity, life insurance exchanged to qualified long-term care insurance policy, nonqualified annuity exchanged to qualified long-term care insurance policy, and qualified long-term-care insurance policy exchanged to another qualified long-term-care insurance policy.
- If any of your accounts earned less than $10 in income for the calendar year, you generally will not receive 1099-DIV, 1099-INT or 1099-OID forms because the IRS does not require tax reporting for these accounts.
- There are exceptions to this rule. We will issue a tax statement if there was any amount of backup withholding, early withdrawal penalty, or foreign tax paid on accounts that earned less than $10 in income for the calendar year.
- Even if you don’t receive a tax statement form, you generally must report income less than $10 on your tax return. The total amount of income earned in 2017 in your account(s) can be viewed in the Activity Detail section on your last financial statements for 2017 and on your Ameriprise annual financial statement (available only on ameriprise.com).
The 61-day wash sale period for any sale that is made at a loss is calculated by taking the day of the sale and adding the 30 days before and the 30 days after the sale.
IRS Publication 550 (Investment Income and Expenses) defines a wash sale:
A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you:
- Buy a substantially identical stock or securities
- Acquire substantially identical stock or securities in a fully taxable trade
- Acquire a contract or option to buy substantially identical stock or securities, or
- Acquire substantially identical stock for your individual retirement arrangement (IRA) or Roth IRA⁶
If a loss is disallowed because of wash sale rules, add the disallowed loss to the cost of the new stock or securities (except for IRAs or Roth IRAs). The result is your basis in the new stock or securities.
Cost basis regulations for covered investments5 require broker-dealers to track wash sales resulting from sale and purchase transactions of identical securities (same CUSIP) within the same account only. In some situations a firm’s calculations of cost basis and gain/loss will not incorporate every wash sale which may have occurred within an account(s). As a result, you will need to track and adjust certain transactions affected by wash sales to disallow loss and adjust basis to comply with IRS rules.
You must apply the wash sale rules yourself for the following situations:
Sales and purchases occurring between brokerage (accounts ending in 133) and mutual fund accounts (accounts ending in 002):
- Sales and purchases of mutual funds occurring between brokerage accounts (accounts ending in 133) and mutual fund accounts (accounts ending in 002) where the wash sale results from the sale and purchase of the identical security (same CUSIP or ticker symbol) in different accounts
- Sales and purchases within the same mutual fund account (accounts ending in 002) where the sale is of noncovered mutual fund shares and the purchase is of covered mutual fund shares
- Sales and purchases of any substantially identical stock or security, regardless of whether the sale and purchase occurred in the same account or different accounts
For more information, consult a qualified tax professional or IRS publication 550, which is available on the IRS website.
- Entities that have not provided Ameriprise with a certified Taxpayer Identification Number (TIN) are treated as foreign entities for Foreign Account Tax Compliance Act (FATCA) purposes.
- Nonqualified accounts owned by entities (not individuals) without a certified TIN on file during any part of the year will be subject to withholding on interest and dividend income during that time under Chapter 4 of the Internal Revenue Code. Trusts, corporations, partnerships, and estates are examples of entities that are not considered individuals.
- If Ameriprise does not have a certified TIN on file for your account(s) at any time during the year, you may receive Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding7, reporting interest and dividend income and associated Chapter 4 withholding.
- You may also receive any applicable Forms 1099 if your TIN was certified at some point during the year.
If you received Form 1042-S and you are not a foreign client, contact your financial advisor or the Ameriprise Service Center, at 800.862.7919 to certify your TIN and avoid future Chapter 4 withholding.
Qualified tax reporting
Qualified accounts are ones that are part of an education savings plan, an IRA, or other type of retirement plan.
For these types of accounts, we generally issue tax statements such as:
- Form 1099-R (Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.)
- Form 1099-Q (Payments From Qualified Education Programs (Under Sections 529 and 530))
- Form 5498 (IRA Contribution Information)
- Form 5498-ESA (Coverdell ESA Contribution Information)
If you own Ameriprise certificates, Columbia mutual funds, Ameriprise brokerage and/or Managed Accounts investments within your IRA or other retirement plan, you have a Custodial IRA plan. Tax reporting for Custodial IRA plans is generated at a plan level instead of by individual account. We will mail you the following tax statements depending on the activity in your plan:
- You will receive one Form 5498, reporting the aggregate Fair Market Value and contributions for all of the accounts within one Custodial IRA plan.
- The account number on Form 5498 is the lowest account number within the plan that had a Dec. 31 Fair Market Value or reportable contributions for 2017
- If you have multiple plans, you will receive multiple forms, one for each plan
- See When can I expect to receive Form 5498 below to find out when we mail Form 5498 to you
- You will receive one Form 1099-R, reporting aggregate distribution information for all of the accounts within the Custodial IRA plan with the same distribution code8 in 2017.
- You will receive a separate Form 1099-R for each different distribution code8 within your plan in 2017
- You will receive a separate Form 1099-R if some of your distributions had state income tax withheld and other distributions did not
- You will also receive a separate Form 1099-R for each state if you had state income tax withheld for more than one state
- The account number on Form 1099-R is the lowest account number within the plan that had a distribution in 2017 for the reported distribution code8,9
Note: If you own annuity accounts within an IRA or other retirement plan you can expect to receive a separate Form 5498 and/or Form 1099-R for any account with reportable activity in 2017. Each annuity account is a separate individual retirement plan.
- Form 5498 for tax year 2017 is sent to you by Jan. 31, 2018, if you meet any of the following criteria in your IRA plan(s) during 2017:
- You owned a traditional IRA, including a Rollover IRA or Beneficial (Inherited) IRA, SEP, SIMPLE or ROTH and had a value on Dec. 31, 2017
- You made 2017 reportable contributions to a traditional IRA, including a Rollover IRA or SEP, SIMPLE, or Roth IRA
- You recharacterized contributions into a traditional IRA, SEP, SIMPLE or Roth IRA plan or converted a traditional IRA, SEP or SIMPLE to a Roth IRA
- You rolled money into a traditional IRA, including a Rollover, or SEP, SIMPLE or Roth IRA
Note: Clients reported as deceased in calendar year 2017 receive a Form 5498 with a zero Fair Market Value (FMV).
- Form 5498 for tax year 2017 is sent to you by May 31, 2018, if you had any of the following activity in your plan(s) between Jan. 1, 2018 and April 18, 20183:
- You made Traditional IRA or Roth IRA contributions for 2017
- You changed contribution designations to or from the 2017 tax year
- You have updated fair market value (FMV) and required minimum distribution (RMD) amounts and hard-to-value asset information, if applicable10
See the question above for more information about Form 5498 for Custodial plans.
The IRS has reporting requirements for reporting late rollover contributions into an IRA. The participant must complete a self-certified form to be eligible. For more information see IRS Publication 590-A, Contributions to Individual Retirmeent Arrangements (IRAs).
The IRS has reporting requirements for investments that are considered difficult to value. These are generally not actively traded in the marketplace or on an established market and may not have current pricing or values readily available at the time when transactions or tax reporting occur. Investments include:
- Stocks or other ownership interests in a corporation not traded on an established securities market
- Short or long-term debt obligations not traded on an established securities market
- Ownership interest in a limited liability company (LLC), partnership, trust, or other similar entity not traded on an established securities market
- Real estate
- Option contracts or similar products not traded on an established option / commodity exchange
- Other assets that don’t have readily available values
You may receive an updated Form 5498 even though you didn't make contribution changes if you own hard-to-value assets in your Custodial IRA plan because:
- We don't have the valuation information available to populate Lines 15a and 15b in time to be included on the year-end statements. See the previous question for details
- In some cases, we receive updated valuations for Dec. 31 after year-end statements have been mailed. Updated information will be incorporated into Form 5498, which will be mailed by May 31. This information may be useful for certain taxpayers, for example those taxpayers taking required minimum distributions.
The IRS requires that we code SEP or SIMPLE contributions in the calendar year that they are received. An employer may, however, report the contribution for the prior plan year when filing their tax return. For more information on the IRS requirements, please see Instructions for Participant on the back of Form 5498 Line 8 (SEP contributions) or Line 9 (SIMPLE contributions).
For an overview of the tax see What is the 3.8% Net Investment Income Tax and does it apply to me? above.
Distributions from qualified retirement plans and education plans are not subject to the 3.8% tax. There will be no changes to tax reporting on Form 1099-R for distributions from these types of accounts:
- Qualified retirement plans such as 401(k), 403(b), Keoghs, pensions, and profit sharing plans
- Traditional, SEP, SIMPLE, Inherited or Roth IRAs
- 529 Plans
- Coverdell ESAs
For additional information, visit Questions and Answers on the Net Investment Income Tax on the IRS website.
Updated or amended tax reporting
Most updated tax statements will be issued at the end of February. However, clients holding Unit Investment Trusts (UITs) or Real Estate Mortgage Investment Conduits (REMICs) generally receive updated statements in mid-March when the information for those investments becomes available. Updated statements for some February corrections may be issued in mid-March for accounts at risk of multiple revisions. Any revisions received after the beginning of March will result in subsequent corrections.
A common reason for an updated Form 1099-DIV is an income reclassification where an issuer changes the tax classification of the dividend payments for an investment you own after your tax statements have been issued. For example, a qualified dividend changing to an ordinary dividend would be considered income reclassification.
Issuers of Real Estate Investment Trusts (REITs) as well as Unit Investment Trusts (UITs), Exchange Traded Funds (ETFs) and mutual funds investing in REITs are most likely to change the tax classification of dividend payments after the original tax statements have been issued. If you own Ameriprise brokerage or managed accounts and/or mutual funds that hold these types of investments, you are more likely to receive updated tax statements resulting from income reclassifications. Most reclassifications occur in February and March, although updates can occur at any time during the year.
If you own an investment likely to reclassify, speak to your tax advisor about the best time for you to file your tax returns. Waiting to file your tax returns until late March or early April may help reduce the possibility of filing amended tax returns.
For more information, see Updated tax statements and income reclassifications.
- “Covered” is a term used to identify investments that are subject to required tracking and reporting of cost basis and holding period information under guidance of the Tax Law and IRS regulations.
- We are required to provide you and the IRS with information related to the proceeds received on the sale of all securities. However, we are only required to provide cost basis and holding period information to you and the IRS on sales and dispositions of covered securities.
- When cost basis is updated on our systems for covered tax lots, due to an income reclassification that changes your cost basis in the covered tax lot, and you sold investments affected by that cost basis adjustment, an amended Form 1099-B (Proceeds From Broker and Barter Exchange Transactions) will be sent to you and updates will be reported to the IRS.
- We are not required to report cost basis and holding period information to you or the IRS for “noncovered” investments or tax lots.
- When cost basis is updated on our system for “noncovered” investments or tax lots, an amended Form 1099-B will generally not be sent to you.
- When cost basis is updated due to income reallocation for noncovered investments or tax lots, we are not required to report the information to the IRS although we will send you an updated Form 1099-B and amended Form 1099-DIV
- You should report appropriate cost basis from your records on your tax return.
If you have already filed your 2017 tax return, you may need to refile using updated information on your updated tax statement(s).
Consult with a qualified tax professional to determine how the changes on your tax statement may affect your 2017 tax returns.You may want to delay filing your tax returns until late March or early April to avoid re-filing if you own a security that is likely to reclassify.
Ameriprise applies De Minimis Safe Harbor rules (passed by Congress in April 2016) that allow brokers not to send amended tax statements for changes of $100 or less ($25 or less for tax withholding changes) to clients and the IRS. Congress passed these rules so that taxpayers and the IRS would not have to contend with tax reporting changes for small dollar amounts, especially after most tax returns have already been filed. Applying these rules eliminates smaller tax reporting updates that may not have substantially changed your tax liability. It also reduces the instances that may cause you to refile your tax return if you have already filed.
- Financial institutions don’t have to produce updated tax reporting to the IRS for changes of $100 or less ($25 or less for tax withholding changes).
- You do not need to take any action. Ameriprise applies the De Minimis Safe Harbor rules to nonqualified Ameriprise brokerage accounts and to Managed Accounts investments, unless you elect to opt-out and receive all amendments.
- You can:
- Make an election to continue receiving tax statement corrections regardless of the amount of the change.
- Decide at any time to revoke the election and no longer receive the corrections of $100 or less ($25 or less for tax withholding) if you properly notify us.
- Choose to get a corrected tax statement under the dollar limits for a specific tax form or a specific year, without making the election applicable to all potential corrections.
To learn how to make or revoke this election see questions How can I make sure that I receive corrected tax statements for my Ameriprise brokerage account or Managed Account investment regardless of the dollar amount of the change? and What if I elect to receive all amendments and later decide that I don’t want to get tax updates of $100 or less? below.
1 In this instance, de minimis is a threshold dollar amount. The threshold is used to determine whether or not we are required to produce a corrected tax statement and report corrected information to the IRS.
2 Taxpayers are not able to choose a different threshold amount.
We will apply the rules only to tax statements for nonqualified Ameriprise® brokerage accounts and Managed Accounts investments. The following tax statements may be impacted:
- 1099-B, Proceeds from Broker and Barter Exchange Transactions
- 1099-DIV, Dividends and Distributions
- 1099-INT, Interest Income
- 1099-MISC, Miscellaneous Income
- 1099-OID, Original Issue Discount
We will continue sending updates for any dollar amount1 for all other accounts, including IRAs and other retirement plans, education savings accounts, Ameriprise certificates, RiverSource annuities and insurance policies. We may start to apply the rules to these accounts in the future.
1 Per IRS rules we are not required to produce tax statement for any account where your reportable interest, dividend or original issue discount income is less than $10 during the year, unless your account was subject to backup withholding.
We will send updated tax reporting to you and the IRS in the following situations:
- For initial updates for Unit Investment Trusts (UITs) and Real Estate Investment Mortgage Conduits (REIMCs) that are issued in March.
- If the update is due to an intentional error, missing information on an original statement or failure to provide a tax statement.
- If you didn’t receive an original tax statement because your income was less than $1012, but the updated information results in income greater than $10.
- For corrections to 2017 tax reporting for Columbia mutual funds, Ameriprise certificates, RiverSource annuities and life insurance policies, IRAs and other retirement plans or education savings plans2.
- For corrections to tax statements for tax years 2015 and before for any accounts.
- If you elect to opt-out and receive updated tax reporting.
Note: The IRS plans to provide additional guidance to you for these rules, so there may be changes in the future, but there is no estimated timeline for this guidance.
You can choose to receive corrected tax statements for any dollar amount by electing to opt out of the De Minims Safe Harbor rules. You may also subsequently decide to revoke your election at any time.
Election request must be submitted on the De Minimis Safe Harbor Rule Client Opt Out Election Form 113542 by each client whose taxpayer identification number (TIN) is listed on an Ameriprise brokerage account or Managed Accounts investment. Keep in mind the following:
- You must specify which account numbers and tax statements should have the opt out election applied. If account numbers and statements are not specified we will apply the election to all accounts and statements1.
- You must specify the calendar year the election applies to, or if the election applies to the current calendar year and all tax years going forward. Elections may apply retroactively, but not for any tax year prior to 2016. If calendar years are not specified we will apply the election to the current year and all future years2.
To get a copy of the form you can contact:
- Your financial advisor4
- Client Service Center at 800.862.7919 and ask for Brokerage Service
Return your completed Form 113542 to your financial advisor or mail it to the address on the form.
If you’ve elected to opt out of the De Minimis Safe Harbor rules, you may revoke your election at any time. Once you revoke the election you’ll stop getting subsequent tax statement updates for changes of $100 or less ($25 or less for tax withholding).
The request to revoke your election can be made using De Minimis Safe Harbor Rule Client Opt Out Election Form 113542. See the previous question for more information.
No, you can either elect to receive all tax statement corrections or keep the default of not receiving any tax corrections unless they are for a change of more than $100 (more than $25 for tax withholding changes).
Any changes that are reported to you will also be reported to the IRS. You will need to consult with a qualified tax professional to determine if the updated tax information affects your specific tax situation.
For more information about the topics in this article or to request Ameriprise forms:
- Contact your financial advisor or qualified tax professional
- If you don’t currently work with a financial advisor or tax professional, contact the Ameriprise Advisor Center at 800.297.2012 for assistance.
- Call customer service at 800.862.7919
Review IRS publications and information on the IRS Website.