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Frequently Asked Questions (“FAQs”) About Your 2021 1099 Tax Statements

What’s New?

Please visit the IRS Website at https://www.irs.gov/forms-instructions to review Instructions and Form changes.

Will I receive more than one 1099?

It is possible you could receive a revised 1099. Changes to dividend tax classifications processed after your original tax form is issued for 2021 may require an amended tax form. However, there are other circumstances which may also cause you to receive a revised 1099. Alpaca will continue to receive, process and mail these corrections up to the IRS filing deadline of April 15, 2022. It is recommended that tax returns be filed after these mailing deadlines to ensure you have received all reported data.

What is an income reallocation?

Income from certain types of investments is subject to adjustments that could change the tax reporting on payments received in your account. For example, you may have received a $100.00 cash dividend on June 1, 2021. The company who declared the dividend may later decide to change the tax category (“reallocate”) of that dividend to 50% return of capital and 50% long term gain. Though these reallocations can occur throughout the year, the bulk of income reallocations are provided between late January and February following the year the original payment was made.

What does the Notes column in the 1099 Detail represent on my 1099 Tax Statement?

The definition of the notes can be found within the end-notes at the end of your tax statement.

Can I Import my 1099 and cost basis information into Turbo Tax?

Yes. Select “Alpaca Securities LLC Securities” from the list of Financial Institutions on the Turbo Tax site.

*You will need the Document ID that is listed on your Tax Statement to complete this process*

What does the Document ID represent on my 1099 Tax Statement?

The Document ID is a unique identifier that provides an additional layer of security when downloading your Alpaca Securities LLC tax statement data into Turbo Tax.

Why are you reporting Cost Basis Information on my 1099-B?

As a result of the Energy Improvement and Extension Act of 2008, we are required to report your “covered” security cost basis information to the IRS. If the securities are “noncovered” we will indicate this on the 1099-B and not report the enhanced Cost Basis information to the IRS.

What do I do if there is an error on my 1099?

Please email [email protected] if you have an error on your 1099.

Alpaca Securities LLC is a registered broker-dealer and does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only and is believed to be accurate and reliable as of the posting date but may be subject to change. It is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Please consult your own independent advisor as to any investment, tax, or legal statements made herein.

Brokerage services are provided by Alpaca Securities LLC ("Alpaca"), member FINRA/SIPC, a wholly-owned subsidiary of AlpacaDB, Inc. Technology is offered by AlpacaDB, Inc.

Important Deadlines

Please click on the following link to review www.irs.gov/forms-instructions IRS Instructions and Forms.

Form Type	Description	IRS Postmark Due Date
1099 Composite excluding REMIC OID	This IRS form includes 1099-DIV, 1099-INT, 1099-OID, 1099-B and 1099-MISC. This form does not include Real Estate Mortgage Conduit (REMIC OID), Widely Held Mortgage Trust (WHMT) or Widely Held Fixed Income Trust (WHFIT) income. You may not receive all form types on your composite statement, for example if you just had dividend payments your composite statement will only produce the 1099-DIV	February 15, 2022 (unless Alpaca uses the granted extension deadline of March 15, 2022)
1099-R	Distributions from Traditional, Inherited IRAs, Roth IRAs or SEP and SIMPLE IRAs	January 31, 2022 (unless Alpaca uses the granted extension deadline of March 1, 2022)
1099-Q	Distributions from Coverdell Savings Accounts	January 31, 2022 (unless Alpaca uses the granted extension deadline of March 1, 2022)
1099-SA	Distributions from Health Savings Accounts	January 31, 2022 (unless Alpaca uses the granted extension deadline of March 1, 2022)
Required Minimum Distribution Letter (RMD)	Advises customers who will be 72 in 2022 (and older) of their 2022 RMD amount	January 31,2022 (no extension available)
1099 Composite Originals due to Holdbacks (now includes REMIC/WHMT/WHFIT information and corrections	Original Forms include REMIC Original Issue Discount (OID), WHMT and WHFIT securities. Corrected Composite 1099s (Forms 1099-DIV, 1099-INT, 1099-OID, 1099B, 1099-MISC)	March 15, 2022
1042-S	Foreign account income and withholding from US sources to nonresident aliens	(unless Alpaca uses the granted extension deadline of April 13, 2022)
5498-ESA	Coverdell Savings Account contributions	May, 2, 2022 (unless Alpaca uses the granted extension deadline of May 31, 2022)
5498	IRA, Inherited IRA, Roth, SEP and SIMPLE contributions	May, 31, 2022 (unless Alpaca uses the granted extension deadline of June 29, 2022)
5498-SA	Health Savings Account contributions	May, 31, 2022 (unless Alpaca uses the granted extension deadline of June 29, 2022)

Brokerage services are provided by Alpaca Securities LLC ("Alpaca"), member FINRA/SIPC, a wholly-owned subsidiary of AlpacaDB, Inc. Technology is offered by AlpacaDB, Inc.

Disclosures

Brokerage services are provided by Alpaca Securities, member FINRA / SIPC, a wholly-owned subsidiary of AlpacaDB, Inc.

Technology and services are offered by AlpacaDB, Inc.

Brokerage services are provided to customers who can write automated investment code and self-direct their own investments. Alpaca brokerage services are only provided to customers who agree to electronically sign agreements and agree to receive messages, confirmations, and statements electronically. Is Alpaca right for me?

This is not an offer, solicitation of an offer, or advice to buy or sell securities or cryptocurrencies, or open a brokerage account or cryptocurrency account in any jurisdiction where Alpaca Securities or Alpaca Crypto respectively, are not registered or licensed, as applicable.

The Paper Trading API is offered by AlpacaDB, Inc. and does not require real money or permit a user to transact in real securities in the market. Providing use of the Paper Trading API is not an offer or solicitation to buy or sell securities, securities derivative or futures products of any kind, or any type of trading or investment advice, recommendation or strategy, given or in any manner endorsed by AlpacaDB, Inc. or any AlpacaDB, Inc. affiliate and the information made available through the Paper Trading API is not an offer or solicitation of any kind in any jurisdiction where AlpacaDB, Inc. or any AlpacaDB, Inc. affiliate (collectively, "Alpaca") is not authorized to do business.

You should know that the use or granting of any third party access to your account information or place transactions in your account at your direction is solely at your risk. Alpaca does not warrant against loss of use or any direct, indirect or consequential damages or losses to you caused by your assent, expressed or implied, to a third party accessing your account or information, including access provided through any other third party apps, systems, or sites.

Market prices, data and other information available through Alpaca are not warranted as to completeness or accuracy and are subject to change without notice.System response and account access times may vary due to a variety of factors, including trading volumes, market conditions, system performance, and other factors.A more complete description of the impact these factors may have can be found in our risks of automated trading systems section.

All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk it does not assure a profit, or protect against loss, in a down market. There is always the potential of losing money when you invest in securities, or other financial products. Investors should consider their investment objectives and risks carefully before investing.

There are risks unique to automated trading algorithms that you should know about and plan for. You should setup a method or system of continuous monitoring or alerting to let you know if there is a mechanical failure, such as connectivity issues, power loss, a computer crash, or system quirk. You should also monitor for instances where your automated trading system experiences anomalies that could result in errant, missing, or duplicated orders. A more complete description of these and other risks can be found in our FAQ section.

Conditional orders may have increased risk as a result of their reliance on trigger processing, market data, and other internal and external systems. Such orders are not sent to the market until specified conditions are met. During that time, issues such as system outages with downstream technologies or third parties may occur. Conditional orders triggering near the market close may fail to execute that day. Furthermore, our executing partner may impose controls on conditional orders to limit erroneous trades triggering downstream orders. Alpaca Securities may not always be made aware of such changes to external controls immediately, which may lead to some conditional orders not being executed. As such, it is important to monitor conditional orders for reasonability. Conditional orders are “Not Held” orders whose execution instructions are on a best efforts basis upon being triggered. Furthermore, conditional orders may be subject to the increased risks of stop orders and market orders outlined above. Given the increased potential risk of using conditional orders, the client agrees that Alpaca Securities cannot be held responsible for losses, damages, or missed opportunity costs associated with market data problems, systems issues, and user error, among other factors. By using conditional orders the client understands and accepts the risks outlined above. Alpaca Securities encourages leveraging the use of Paper accounts to become more comfortable with the intricacies associated with these orders.

ETFs can entail risks similar to direct stock ownership, including market, sector, or industry risks. Some ETFs may involve international risk, currency risk, commodity risk, and interest rate risk. Trading prices may not reflect the net asset value of the underlying securities.

All accounts are opened as limited purpose margin accounts. You should know that margin trading involves interest charges and risks, including the potential to lose more than deposited or the need to deposit additional collateral in a falling market. Before using margin, customers must determine whether this type of trading strategy is right for them given their specific investment objectives, experience, risk tolerance, and financial situation. For more information please see Alpaca's Margin Disclosure Statement and Margin Agreement. These disclosures contain information on Alpaca Securities's lending policies, interest charges, and the risks associated with margin accounts.

Commission-Free trading means that there are no commission charges for Alpaca Securities self-directed individual brokerage accounts that trade U.S. listed securities through an API. Relevant regulatory fees may apply.

Commission free trading is available for Alpaca's retail customers. Alpaca reserves the right to charge additional fees if it is determined that orders flow is non-retail in nature.

Cryptocurrency is highly speculative in nature, involves a high degree of risks, such as volatile market price swings, market manipulation, flash crashes, and cybersecurity risks. Cryptocurrency is not regulated or is lightly regulated in most countries. Cryptocurrency trading can lead to large, immediate and permanent loss of financial value. You should have appropriate knowledge and experience before engaging in cryptocurrency trading. For additional information please click here.

Cryptocurrency services are made available by Alpaca Crypto, a FinCEN registered money services business (NMLS # 2160858), and a wholly-owned subsidiary of AlpacaDB, Inc. Alpaca Crypto is not a member of SIPC or FINRA. Cryptocurrencies are not stocks and your cryptocurrency investments are not protected by either FDIC or SIPC. Please see the Disclosure Library for more information.