Investor Education

Investor Education
tax

Tax Time Help

Important Dates and Forms

Because tax time can be confusing, this section can help you make sense of tax-related forms, where and when to expect them, and what tax implications your investments have.

In this section:

Throughout the year, you may receive several tax-related forms—and you may not be sure why. Wasatch Funds is required to send you tax forms that report certain investment activities to the IRS; you’ll want to keep them for preparing your income tax returns. Here is a list of tax-related forms you may receive from us.

2013 Tax Card 
Form 1099-DIV 
Form 1099-B
Form 1099-R
Form 1099-Q
Form 5498
Form 5498-ESA

*Note: Most Wasatch Funds related tax forms will be mailed to you by February 15th for the previous tax year. 

2013 Tax Card

Click here to obtain the following information:

  • Percentages of total ordinary income dividends from the Wasatch-Hoisington U.S. Treasury Fund, Wasatch-1st Source Income Fund, and Wasatch-Federated Money Market Account (Federated Automated Cash Management Trust-Institutional Service Shares) that were attributable to interest on securities issued by the U.S. Treasury (bills, certificates of indebtedness, notes and bonds) and certain government agencies.
  • Information necessary to claim either a tax credit or itemized deduction including foreign source income factors for the Wasatch Emerging Markets Select Fund and Wasatch Frontier Emerging Small Countries Fund. The amount reported in box 6 of your Form 1099-DIV represent the amount of foreign taxes paid by the Fund. Please consult with your tax advisor about claiming a credit or itemized deduction.

Form 1099-DIV
For each investment account you hold with us, you will receive this form unless you received or reinvested less than $10 per fund. This form reports:

  • Ordinary dividends. These dividends are payments given to shareholders on an annual basis. Many investors do not receive these dividends as cash, but have them automatically reinvested. Either way, they are taxed each year and must be reported to the IRS.
  • Total capital gains. This represents total profit realized from selling shares in a fund.
  • Qualified dividends are dividends that are taxed at a lower tax rate, because the fund follows a given set of IRS specifications. Wasatch Funds will inform you if you have received qualified dividends.
  • Non-taxable distributions, or return of capital, are distributions that result from depreciation tax savings, the sale of a capital asset or securities, or any other transaction unrelated to retained earnings.
  • Federal income tax withheld is the amount of backup withholding made during the year.
  • Foreign tax paid includes taxes paid to governments other than that of the United States.
  • Foreign source income is income generated from countries outside the United States.

Form 1099-B
When you have sold shares of a fund, Form 1099-B reports the proceeds of those redemptions and exchanges. The sale of your shares results in either a gain or loss (see capital gain) which must be reported to the IRS. You can report the amount shown on this statement on your 1040 Schedule D tax return form.

Please note that Wasatch Funds uses the single average cost calculation method to provide cost basis. There are other methods allowed to determine costs basis. Please discuss with your tax advisor which method is best for you.

Form 1099-R
If you have a retirement account with Wasatch Funds (including a traditional IRA, Roth IRA, SEP, SIMPLE IRA, or 403(b)), this form reports any distributions over $10. Some important items you’ll find included on this form are:

  • Gross distribution paid during the tax year
  • Amount of that distribution that is taxable
  • Federal income tax withheld
  • Type of distributions made to the plan holder (represented by a code)

Form 1099-Q
If you have a Coverdell Education Savings Account with Wasatch Funds, this form reports:

  • Distributions
  • Rollovers
  • Trustee-to-trustee transfers

Form 5498-ESA
If you have a Wasatch Funds Coverdell Education Savings Account (ESA), this form is used to report:

  • Contributions
  • Trustee-to-trustee transfers

Form 5498
If you have a retirement account with Wasatch Funds (including a traditional IRA, Roth IRA, SEP or SIMPLE IRA), this form reports:

  • Contributions
  • Rollovers
  • Re-characterizations
  • Conversion activity
  • Fair market value as of December 31 of the previous year

If you would like more details about the types of income these forms report and their implications, you may wish to consult with your tax advisor, or Shareholder Services would be happy to answer your questions at 800.551.1700.

Most tax-related forms are sent to you in the first few months following the tax year in question. Wasatch Funds is required to have forms postmarked to you by the following dates, which means you should receive a form within a week of the stated date. If you do not receive your forms, please do not hesitate to contact Shareholder Services at 800.551.1700. You may also access these forms after the below listed dates using your online Wasatch Funds account.

Forms to be postmarked by February 15 
Form 1099-DIV
Form 1099-B
Form 1099-R
Form 1099-Q

Forms to be postmarked by April 30
Form 5498-ESA

Forms to be postmarked by May 31
Form 5498

The IRS requires you to report income and losses on the investments you make in mutual funds. Because some investors choose to reinvest their annual dividends from a fund, they are sometimes surprised that they owe taxes when they did not buy or sell any shares. This section helps explain the types of income that must be reported from mutual fund investments and what tax implications they may have.

Capital gain
The most obvious way to realize earnings from your mutual fund investment is through a capital gain. In simple terms, it’s the difference between your buying price and your selling price. When you buy low and sell high, the money you make at the sale of your shares is a capital gain. This income will be reported to you on Form 1099-DIV. If you have sold shares in a mutual fund, you will also receive Form 1099-B.

Distributions
Mutual funds are required by the IRS to “distribute” any interest, dividends, or capital gains they make each year. These distributions can be confusing because you may still end up paying tax on a distribution even if the fund’s overall performance was negative. In tax exempt accounts, distributions are simply reinvested with no immediate tax requirements and without imposing any eventual tax burden on the account. Although you can receive distributions in cash, you may not realize you received a distribution because you may have opted to reinvest distributions when you first bought the fund. Distributions are reported on different 1099 forms, depending on the type of account you have.

1099-DIV: standard investment account
1099-R: retirement account
1099-Q: Coverdell Education Savings Account (ESA)