Understanding my US tax forms

Form 1099-DIV, Dividends and Distributions, is a yearly tax statement provided to US plan participants detailing dividends and other distributions paid during the tax year. Computershare provides the form to both the participant and the IRS.

The form reports dividend and distribution information, including federal income tax withheld, such as backup withholding.

A 1099-DIV is generally issued for a year in which a participant receives a dividend distribution. If the amount received is less than $10 for the year, no 1099-DIV is issued, although the participant should still report the income to the IRS.

This form is provided to a US person who sold shares during the tax year. Computershare provides it to both the participant and the IRS.

• Recipient TIN
• Details of shares sold on the participant's instructions or behalf, including equity plan shares sold to cover tax
• Whether any gain or loss is long-term, short-term or ordinary, when shares are covered
• Acquisition and sale dates and other required information

A US person, or a person with US indicia, such as a US address, who has not provided Form W-8BEN, and who sold shares during the tax year, or had US federal tax withheld on a sale or other reportable payment.

It may be blank if Box 5, non-covered security, is checked or if the securities sold were acquired on multiple dates.

Proceeds are reported in US currency. If proceeds were elected in USD, the actual applied FX rate is reflected. Otherwise, Computershare applies an average mid-market FX rate as of the settlement date.

Yes. The amount shown is "net proceeds," after sale-related commissions have been deducted.

Cost basis is not shown when the shares sold are non-covered. In that case Box 5 is checked, and Computershare is not required to report cost basis.

This is backup withholding deducted by Computershare from sale proceeds. No other taxes are reported in Box 4.

This is the loss resulting from wash sales involving equity plan shares. The disallowed portion is added to the basis of shares repurchased within 30 days.

A disallowed loss may be added to the cost of the replacement shares, postponing the deduction until those shares are sold. The holding period o the shares sold will be added to the holding period of the shares considered repurchased. Wash sale adjustments reported in Box 1g of Form 1099-B should be reflected in columns f and g of Form 8949, using code W and the adjustment amount as a positive number.

This is an informational statement provided as a optional service by Computershare. This information may help participants complete Form 8949. It contains detailed transaction information reported on Form 1099-B as well as information from EquatePlus. It is available in EquatePlus under Library > Documents. It is optional and may not be issued, depending on the employer's agreement.

• Whether capital gain or loss is long-term or short-term
• Ordinary compensation income for ESPP plans
• Acquisition date for noncovered shares
• FMV at vesting date for noncovered shares
• FMV at exercise date for stock options

The IRS requires 1099-B cost basis reporting only for covered shares. Computershare may not have all the information needed to determine basis for non-covered shares. The supplemental may provide fair market value and ordinary income, when applicable, to help determine basis.

Columns a through e of Form 8949 correspond to Boxes 1a through 1e of Form 1099-B. For non-covered shares, the supplemental may help complete a missing acquisition date and cost basis. For covered shares, the ordinary income column may help determine an adjustment to reported basis. Consult a qualified tax advisor.

Gross proceeds from the sale of shares reportable on Form 1099-B are among the typical payments subject to backup withholding.

No. Plan participants generally will not be subject to backup withholding when they provide a properly completed and timely Form W-9 or W-8BEN, unless they specifically instruct that backup withholding be applied.

Backup withholding on dividends is shown on the Dividend Confirmation statement. For gross sale proceeds, it is detailed online on the trade confirmation or advice note provided one business day after the broker confirms the sale. It is also shown on Forms 1099-DIV and 1099-B issued after year-end.

No. Computershare is not required to increase cost basis for compensation income on Form W-2. Form 8949 may allow an adjustment to the basis of shares sold by the amount recognized as ordinary income. Consult a tax advisor about completing Form 1040 and Form 8949.

US shareholders have long been required to report cost basis. Under the Emergency Economic Stabilization Act of 2008, administrators must track and report basis for certain shares acquired after January 1, 2011. Total basis for an employee equity plan sale generally includes cash paid, ordinary compensation income recognized on acquisition, and acquisition fees. Form 8949 allows adjustments to reported basis.

If all shares are sold, the cost basis ordering method becomes irrelevant. Ordering methods apply to partial sales, transfers or certificate issuance. When an entire covered position is sold or transferred, the reportable basis for the positions, per lot, is provided to the receiving broker. Acquisition information remains available in EquatePlus.

US participants who sold shares during the tax year may need to report the sale on Form 8949, Sales and Other Dispositions of Capital Assets. The form reconciles amounts reported on Form 1099-B with the income tax return and may include cost basis adjustments for compensation income reported on Form W-2. Information is then transferred to Form 1040, Schedule D.

Amounts must be stated in US dollars. Depending on the shares, cost basis may need to be adjusted. Consult the IRS instructions and a qualified tax advisor.

No. Form 8949 is used to calculate taxable capital gain or loss. W-2 compensation income is reflected as an adjustment to the 1099-B cost basis on Form 8949 to avoid double taxation.

Use Part I, Checkbox A for short-term gain or loss, or Part II, Checkbox D for long-term gain or loss. Enter items (a) through (e) as reported on Form 1099-B. Adjustments may include compensation income, applicable wash sale amounts, and currency-conversion differences. Typical adjustment code is B, with W also used when a disallowed wash sale is reported.

Use Part I, Checkbox B, or Part II, Checkbox E. Items (a), (c ) and (d) should match Form 1099-B. Item (b) may be on the supplemental statement. For non-covered restricted stock, RSUs or SSAR exercises, cost basis generally uses the supplemental fair market value multiplied by the number of shares sold.