What is IRS Form 1099-B?
At a glance
- Form 1099-B reports proceed from broker and barter exchange transactions.
- Transactions reported on a 1099-B form include sales of stocks, mutual funds, options, bonds, and certain commodities.
- 1099-B transactions are usually reported on Form 8949 and summarized on Schedule D.
- Not reporting your 1099B form transactions can result in IRS notices, penalties, or interest.
- The information on your Form 1099-B plays a key role in calculating capital gains and losses on your return.
IRS Form 1099-B reports gains or losses from selling stocks, bonds, or other securities through a broker. This also includes barter exchange transactions (exchanged property or services instead of paying cash). You’ll likely receive this form if you made any of these transactions during the tax year. These proceeds are used to calculate capital gains/losses.
What transactions are reported on Form 1099‑B?
Common transactions reported on Form 1099-B include stock sales and mutual fund sales.
Here is a list of transactions reported on a 1099-B:
- Stock sales
- Mutual fund and ETF sales
- Bond sales and other debt instruments, including mortgages and lines of credit
- Options trades
- Regulated futures contracts, securities futures contracts, forward contracts, and certain foreign currency contracts
- Barter exchange transactions involving goods or services
- Cash, stock, or other property received in corporate actions such as mergers, acquisitions, or major changes in a company’s capital structure (as reported on Form 8806)
Where is Form 1099‑B reported on a tax return?
1099-B transactions are usually reported on Form 8949 and then summarized on Schedule D of Form 1040. Form 8949 is used to list each sale and calculate gains or losses, while Schedule D (Capital Gains and Losses) totals those amounts and determines how they affect your taxable income on your federal return.
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What happens if you don’t report your 1099-B on your tax return?
If you don’t report your 1099-B transaction, it could lead to additional taxes owed, penalties, and interest from the IRS. Additionally, if you receive a Form 1099-B and do not report the transaction on your tax return, the IRS will likely send you a CP2000.
Just remember, reporting your transactions accurately helps avoid surprises later.
Form 1099-B FAQs:
How does Form 1099‑B affect capital gains taxes?
It provides the sale proceeds used to calculate capital gains or losses, which can increase or reduce your tax bill. Capital gains may be taxable, while capital losses can help offset gains and possibly other taxable income. Your Form 1099-B will show if your gains are short-term or long-term capital gains, which is important because long-term gain rates can be much lower than short-term rates. Learn more about short- vs. long-term capital gains.
Do you need Form 8949 for a 1099‑B?
Yes, in most cases. This form is used to report the detailed information shown on Form 1099‑B, which helps ensure your capital gains reporting is accurate.
Get help with reporting 1099-B form income
If you’re looking for help filing your IRS Form 1099-B, H&R Block is here for you. Whether you file online or file with a tax pro, you can rest assured that we’ll get you the biggest refund possible.
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